In Latin America, CIPE has identified governance gaps, developed policy solutions, and raised awareness about the importance of accountable investments. In Southeast Asia, CIPE exposes the risks associated with China’s Belt and Road Initiative (BRI) to local economies. In Eastern Europe, CIPE promotes competitive business environments to diversify supply chains and counter authoritarian influence.
Financial flows from authoritarian regimes into weaker democracies have eroded the rule of law, bred corruption, and undermined democracy.
These financial flows from authoritarian regimes into weaker democracies have eroded the rule of law, bred corruption, and undermined democracy in recipient countries. Such corrosive capital, or capital that lacks transparency, accountability, and market orientation, exploits and exaggerates governance gaps to influence economic, political, and social developments in emerging democracies. Left alone, corrosive capital subverts opportunity, corrupting the market so that accountable investments cannot enter.
For nearly a decade, CIPE has worked to combat the harmful effects of such foreign malign influence by authoritarian states by supporting market reform that strengthens democracy and promoting accountable investments, or constructive capital.
CIPE has worked to combat the harmful effects of foreign malign influence by authoritarian states.
At CIPE, we believe this work is critical to enhancing global prosperity and safeguarding economic security. Below is a brief overview of our approach:
CIPE believes the participation of a vibrant private sector is key to supporting investments with a constructive impact
CIPE takes both an offensive and defensive approach to determine whether an investment is an opportunity or a danger, with the private sector playing a key role. We do this by:
- Reducing Corrosive Capital (Defensive) – a strategy which incorporates the strong voice of the private sector in reducing governance gaps and increasing transparency and accountability at the government level.
- Increasing Constructive Capital (Offensive) – a strategy that works with the private sector on initiatives including collective action against corruption, incorporating self-regulatory mechanisms, and introducing supply chain reorientation, among other programs.
CIPE’s Accountable Investment work ensures that U.S. businesses are free to compete and free to succeed in global markets.
Our Center for Accountable Investment (CAI) thwarts America’s adversaries’ ability to deploy capital for unfair geostrategic advantage and ensures American businesses can compete fairly and succeed – supporting innovation, economic growth, and democratic resilience in key markets worldwide.
In Chile, CIPE collaborated with local authorities to implement a registry that enhances transparency and reduces corruption in investment processes.
In Thailand and Indonesia, CIPE’s anti-bribery initiatives have enhanced private sector accountability and transparency. By working with local partners to adopt best practices, CIPE builds trust in democratic institutions and fosters an economic environment conducive to fair competition. These efforts benefit U.S. businesses by leveling the playing field and creating markets that are less susceptible to exploitation by authoritarian regimes.
CIPE enhances global transparency by tracking and monitoring major investments by China’s Belt and Road Initiative.
The BRI Monitor is a collaborative effort by CIPE and five civil society organizations in Southeast Asia and the Pacific to promote transparency and governance of major infrastructure projects funded through China’s Belt and Road Initiative. This initiative serves as a robust assessment tool to help host countries identify problem areas, as well as work with the private sector to promote transparency and accountability while limiting public financial exposure to unsustainable investments.
In Vietnam and Indonesia, CIPE’s work exposes the risks associated with China’s BRI projects by empowering local stakeholders to resist malign influence and prioritize market-oriented investments. CIPE also supports the economic sovereignty of Pacific Island nations, including Melanesia, Polynesia, and Micronesia, by fostering partnerships with democratic allies and enhancing their capacity to resist economic coercion. This work ensures governments are informed about the investments they are making and exposes the harmful impact of China’s approach to investing – as colonizers who seek to exploit local markets to increase their own wealth. U.S. businesses offer a different approach, and the BRI Monitor demonstrates that through a rigorous evaluation process that is publicly available.
CIPE’s global network includes more than 1,000 business associations and chambers of commerce across more than 80 countries, representing millions of small and medium-sized companies, as well as governments and think tanks. Established in 1983, CIPE is an affiliate of the U.S. Chamber of Commerce and a core institute of the National Endowment for Democracy.
Photo: iStock.com/Sam Makoji
Published Date: February 25, 2025