Economic Development

For 60 years, The Asia Foundation has supportedAsian initiatives to foster inclusive economicgrowth and broaden economic opportunities.

The Foundation designs and implements economic programs in three core areas:

Our program initiatives range from the local tothe regional levels and work to:

n increase economic opportunities and expandinvestment and trade;

n strengthen partnerships among governments,private enterprise, and civil society to promote broad-based growth; and

n improve the responsiveness of public authorities to demand for a more supportivebusiness environment, including for women entrepreneurs.

A supportive business environment for privatesector development, including for micro, small,and medium enterprises (MSMEs) - the bulk offirms in Asia - is essential to competitiveness andto efficient markets, which are integral to sus-tained economic development, resiliency, andgrowth. Despite the importance of a supportivebusiness environment, a lack of transparency,legal roadblocks, red tape, monopolies, vested

interests, and a myriad of other barriers make itmore difficult to do business in many developingcountries in Asia, especially for women.

The Foundation’s approach to economic development focuses on creating more conducivebusiness environments for sustained, inclusive economic growth and stability in Asia. Our pro-grams support pro-market reforms of the business environment to unleash the potential of the pri-vate sector to raise incomes, create jobs, and growthe economy. They also strive to expand domesticand international trade and investments, and theintegration of global or regional value-chains.

By engaging with citizens, entrepreneurs, governments, and civil society, the Foundation’sEconomic Development programs help empowerconstituents to advocate for policy reform and toestablish or strengthen channels for those reformsto be achieved. Ultimately, the outcome of theseprograms is improved economic governance, better business environments, and greater economic opportunities for all.

THE FOUNDATION SUPPORTS THREE CORE

AREAS IN ECONOMIC DEVELOPMENT:

BUSINESS ENVIRONMENT FOR PRIVATE

SECTOR GROWTH

We support the private sector’s push for business-friendly environments by identifying key barriersto private sector growth and supporting coalitions to push for feasible and politicallyacceptable reforms that will have tangible impact.We help form partnerships among governments,private enterprise, and civil society to promote

The Foundation

promotes open and

inclusive economic

governance not only

within countries but

also regionally.

ECONOMICDEVELOPMENT

Supporting Asian Initiatives for Broad-Based Economic Growth

The Foundation has

been working to pro-

mote economic growth,

shared prosperity, and

regional economic

cooperation in Asia for

over half a century.

Over the past decade,

the Economic

Development portfolio

has rapidly expanded

and now comprises a

number of programs

across Asia.

The Foundation relies

on its network of 18

country offices to

address important

cross-border issues

and promote the sharing

of best practices.

n BUSINESS ENVIRONMENTS FOR PRIVATE

SECTOR GROWTH

n ENTREPRENEURSHIP DEVELOPMENT

n REGIONAL ECONOMIC COOPERATION

BANGLADESH

Our Bangladesh office facilitated the environmental compliancereform of the leather industry by working with a multi-stakehold-er public-private coalition, which will raise the crucial leatherindustry’s export potential, and save the river Burriganga (life lineof the capital) from pollution. The office also launched the first e-business platform for women entrepreneurs.

EXAMPLES OF THE ASIA FOUNDATION’S ECONOMIC DEVELOPMENT PROGRAM IMPACT

PHILIPPINES

In bringing together a broad informal coalition of partners to helppass a breakthrough tobacco and alcohol excise tax reform law,the Foundation achieved a transformative reform based on the“development entrepreneurship” approach. The tax generatednew revenue and largely funded the government universalhealthcare program.

INDIA

Our India office supported a trade consignment mapping andanalysis project identifying the structural and institutional barri-ers to overland trade between India-Pakistan, India-Nepal, andNepal-Bangladesh. This is expected to enhance the efficiency ofselected cross border trade corridors in South Asia and reducethe costs of doing trade.

SOUTHEAST ASIA - MAKING AEC WORK FOR SMEs

The Foundation supported a regional economic cooperationforum in Bangkok, which provided a platform for discussion onkey issues such as non-tariff barriers (NTBs), logistics, regula-tions, technology, and best practices. The forum enhancedSMEs’ understanding of the ASEAN Economic Community (AEC)and identified proposed actions.

SOUTH ASIA: REGIONAL TRADE FACILITATION

Through partnering with local organizations in India, Bangladesh,Nepal and Pakistan, the Foundation documented the cost of non-economic cooperation on consumers, and created participatoryplatforms for their resolution, thus paving the way for savingsamounting to 16% of the total value of intra-regional trade inSouth Asia.

MYANMAR AND THAILAND: AEC TRAINING WORKSHOPS FOR SMES

The Foundation co-organized five training workshops onstrengthening SMEs’ understanding of the ASEAN EconomicCommunity (AEC), to be established in 2015. The workshops provided participants with marketing and networking skills aswell as an in-depth understanding of the implications of AEC,including legal and regulatory processes

MALAYSIA AND THAILAND: MIDDLE INCOME TRAP (MIT)

The Foundation published the study, MIT: Economic Myth, PoliticalReality with local researchers and academics, which advocate apolitical economy perspective of MIT, provides recommendations,and highlights the importance of quality education and a goodenabling environments for SMEs.

INDONESIA

The Foundation supported national and local governments inIndonesia by conducting analysis and research to promote a betterunderstanding of local economic governance and the potential forcritical policy reform. Key areas include business licensing, theregulatory framework, budget processes and allocations, procure-ment, logistics, and the value-chain of agriculture commodities.

MYANMAR

In Myanmar, the Foundation published a report, on subnationalgovernments and business focusing on the business environ-ment encountered by Myanmar’s SMEs. The report Identified keybusiness-government interactions and related obstacles such aslicensing and taxation complexities, and provided recommenda-tions for institutional reform.

MONGOLIA

Our Mongolian office collaborated with the Ulaanbaatar CityMunicipality to develop an Economic Development Strategy planfor sustainable economic growth. The Foundation supported a con-sensus-based participatory process, including the development ofa comprehensive SWOT analysis, to address the key issues facingthe city.

HEADQUARTERS465 California Street, 9th FloorSan Francisco, CA 94104 USATel: (415) 982-4640Fax: (415) 392-8863info@asiafound.org

WASHINGTON, DC1779 Massachusetts Ave., NWSuite 815Washington, D.C. 20036 USATel: (202) 588-9420Fax: (202) 588-9409info@asiafound-dc.org

www.asiafoundation.org

09/2014

broad-based economic growth through support-ing public-private forums, working groups, anddialogues at the national and subnational level fordialogue to address key issues facing business people and communities. For example, inCambodia, Sri Lanka, Bangladesh, and Nepal, the Foundation has facilitated subnational levelpublic-private dialogues that have led to the simplification of regulations and reduction oftaxes for SMEs. Through analysis of local contextand applying a political economy approach, theFoundation has helped stakeholders shape anddrive policy reform. This is the case in thePhilippines, where transformative reform wasachieved through the “development entrepreneur-ship” approach. For example, a broad informalcoalition of partners mobilized the passage of atobacco and alcohol excise tax reform law, whicheventually helped the country generate revenue tofund the government’s universal healthcare program. The Foundation is also exploring innovative approaches to utilize the full potentialof Information and Communication Technology(ICT) to support more transparent business environments for a better informed and moreengaged business community. These includemobile information services and hotlines for business owners and trade barrier reporting websites for traders. In Bangladesh, a mobile-based platform for delivery of ICT services towomen was launched in collaboration withBanglalink, a major mobile telecom operator.

ENTREPRENEURSHIP DEVELOPMENT

To foster entrepreneurship development, theFoundation maps out the constraints faced byaspiring and existing entrepreneurs in the contextof an increasingly globalized economy. Throughstrengthening business associations and chambersfor advocacy and networking, and by leveragingICTs to improve business efficiency and buildnetworks, the Foundation is helping entrepre-neurs develop opportunities for growth andexpansion. With a focus on empowering womenentrepreneurs, particularly in South-East Asiawhere women-owned SMEs are growing rapidly,the Foundation invests in strengthening women’snetworks and advocates on behalf of women’sbusiness needs. During 2009-11, in Bangladeshthe Foundation in partnership with theInternational Finance Corporation (IFC) promoted district women entrepreneurshipthrough effective networking and inclusion in the district development dialogues. In 2013, theFoundation supported training workshops for

SMEs on regional trade in Myanmar andThailand. The workshops also helped small business owners gain an in-depth understandingof the impacts to their businesses in relation tothe ASEAN Economic Community (AEC). InVietnam, the Foundation works to strengthen thecapacity of Vietnamese Business Associations andCooperative Associations to support policy advocacy and equitable growth.

REGIONAL ECONOMIC COOPERATION

Regional economic cooperation is increasinglybeing seen as an important means to accelerateeconomic growth and address broader socioeco-nomic and environmental issues. The AsiaFoundation works across several dimensions, especially in the area of intra-regional trade andinvestment and regional value-chain optimization,in South Asia and Southeast Asia. The Foundationencourages the formation of networks and coali-tions to remove impediments to trade such as non-tariff barriers. In South Asia, the Foundationis working with local partners to undertake a tradeconsignment mapping project to identify the policies needed to enhance the efficiency of regional trade corridors and enhance regional supply chains in India, Bangladesh, and Nepal.The Foundation also facilitates dialogue between policymakers and the private sector to push formeasures that will help firms better capture thegains from regional integration. For example, theFoundation sponsored a Southeast Asia regionaleconomic cooperation forum in Thailand onregional integration and the challenges of theASEAN Economic Community (AEC) plannedfor 2015. The forum, “Making AEC work forSMEs,” was an opportunity for public and private sector representatives, the SME businesscommunity, and regional representatives from theASEAN to discuss non-tariff barriers and other keychallenges of regional integration.

OUR APPROACH

Our approach includes a “political economy”dimension to better understand the motivationsand incentives of key stakeholders and to betterengage with them throughout the reform process.It takes into consideration the dynamics of incentives, interests, and opportunities to developflexible strategies for reform. Our activities arefocused on evidence-based analysis, as well asknowledge and relationship building to helpdrive the policy reform process.

The Asia Foundation

is a nonprofit international

development organization

committed to improving

lives across a dynamic

and developing Asia.

Headquartered in San

Francisco, The Asia

Foundation works through

a network of offices in

18 Asian countries and in

Washington, DC. Working

with public and private

partners, the Foundation

receives funding from

a diverse group of

bilateral and multilateral

development agencies,

foundations, corporations,

and individuals.