What kind of leader can bring people together for the common good, even amid clashing opinions or real conflict?
That question was at the heart of the 2017 Global Leadership Forum March 6 on the growing need for “collaborative leadership” in an age of increasingly polarized societies.
The event at the World Bank was organized with the Global Partnership for Collaborative Leadership in Development. It explored how to bridge often wide divides to arrive at inclusive solutions, and featured guests such as Festus G. Magae, a former President of Botswana and a South Sudan peace negotiator, and Frank Pearl Gonzalez, Chief Negotiator in the Colombian Peace Talks.
If you’ve opened a bank account in the last few years, you likely had to answer a bunch of more or less intrusive questions about yourself, your background and why you wanted to open the account. Annoying, but part and parcel of Anti-Money Laundering/Combating the Financing of Terrorism (“AML/CFT”) rules that all banks, in all parts of the world, are subject to.
The ostensible purpose is to enable banks to prevent bad actors using the financial system to launder their funds and, where bad actors are not identified at entry, to detect any suspicious financial activity and provide appropriate background to competent authorities. (Whether they are successful in this endeavour is another question.)
More recently large international banks have been upping the ante and have started to disengage altogether from clients from certain geographical regions or certain sectors because they consider the AML/CFT risks too great- a development known as “de-risking”. Often the business lines or countries exited are those that aren’t particularly profitable; the argument being that only a substantial profit margin justifies taking a larger than average risk. The amount of due diligence to be conducted on a customer cuts into that profit margin and the higher the perceived risk of that customer, the more the due diligence, the lower the profit.
One of the sectors particularly affected are non-profit organizations (NPOs). This is an unfortunate consequence of the mistaken and remarkably persistent idea that all NPOs pose a high AML/CFT risk. According to a report published earlier this month by the Charity and Security Network, two-thirds of U.S.-based NPOs working abroad are facing problems accessing financial services. Apart from account closures and account refusals, these also include delays in wire transfers and increased fees.
As a result of these delays, they are sometimes forced to move money through less transparent, traceable, and safe channels. The prevalence and types of problems vary by program area, with NPOs working in peace operations/peacebuilding, public health, development/ poverty reduction, human rights/ democracy building, and humanitarian relief reporting the greatest difficulties. One NPO was prevented from sending immediate relief to the persecuted Rohingya minority in Myanmar in the midst of a dire humanitarian crisis. Timely transmittal of those funds might have saved lives, the charity’s director explained.
I saw some effective academic-NGO cooperation last week, and even better, it involved some of my LSE students.
The occasion was the launch of Beyond Integrity: Exploring the role of business in preserving civil society space, commissioned and published by the Charities Aid Foundation and written by Silky Agrawal, Brooks Reed and Riya Saxena, three of last year’s LSE Masters students. They researched and wrote the report as part of a student consultancy project, and CAF were so impressed that they decided to publish it. Result.
First the content: the authors went looking for cases where businesses had got involved in defending civil society from attacks by government, and identified four really interesting cases (see table). They interviewed a number of the players in each case.
They found some ‘key learnings’ (bit depressing to see them already adopting the barbarisms of aidspeak!):
- Firms in consumer-facing industries are responsive to large-scale social movements that raise awareness regarding human rights abuses;
- Privately owned companies with strong ethics and values tied into the core business model, led by engaged leaders, are likely to respond to civil society;
- At times, privately held dialogues between key stakeholders and host governments can be more effective at initiating positive action than a public challenge, as the respect and dignity of each stakeholder is maintained;
- Leveraging formal and informal cross-sectoral networks is instrumental in convincing corporations to act on behalf of civil society.
In a democracy, a critical element in the engagement between citizens and state is “accountability”. There are several definitions—one among them from the World Bank reads: “Accountability exists when there is a relationship where an individual or body, and the performance of tasks or functions by that individual or body, are subject to another’s oversight, direction or request that they provide information or justification for their actions”.
Citizens and civil society organizations seek accountability from the state. Where this builds on broad-based civil society engagement, we hear of “social accountability” whose advocates believe that a regular cycle of elections alone are not enough to hold the state to account. For instance, a decline in the quality of public services or cases of denial of (social) justice call for mobilization outside of the electoral cycle. But how does the state respond?
When the state is under sustained pressure to reform, it could take one of these positions: (1) respond to civil society using physical force and/or its legal prowess; (2) stoically “do nothing”; (3) formulate a response that emphasizes form over function; and (4) undertake genuine reform. These options represent a sliding scale of state response, and on any given issue, the state might change its position over time, depending on how the context evolves.
The reality is that more often than not, status quo rules: the space for citizens seeking accountability relies primarily on the willingness of the state. It is not in the nature of states to do this of their own volition, and often, a sustained campaign by a strong coalition of interests is required to influence them.
and what a difference a group of young Lebanese men and women are making to advocate for peace to make a difference!
Their ages range between 16 to 25 years old. They are poor and unemployed. They once fought each other, literally, in their sectarian-divided Lebanese city of Tripoli. Sunni residents of Bab al-Tabbaneh and Alawite residents of Jabal Mohsen neighborhoods fought each other repeatedly.
But at the beginning of 2015, the government imposed a ceasefire that put an end to the endless rounds of fierce clashes and restored calm in the city.
And that’s when a Lebanese non-profit organization promoting peace through art went there looking for a different kind of recruitment: one of peace. March brought the youth together to perform in a play!
- civil society
- Community Development
- State Fragility
- Fragility Conflict and Violence
- Conflict and Fragility
- Civil War
- Post-Conflict Peacebuilding
- Social Development
- Middle East and North Africa
- Sustainable Communities
There are few better ways to reveal whether a government’s rhetoric matches reality than examining how it raises and spends public money. Are funds being spent on the things it said they would be? Are these investments achieving the outcomes that were intended? In short, are government budgets accountable?
The traditional model for how accountability functions is rather simple. "Horizontal accountability" describes the oversight exerted over the executive arm of government by independent state bodies such as parliaments and supreme audit institutions. "Vertical accountability" describes the influence citizens hold through the ballot box.
Between elections and outside of formal institutions, however, opportunities for influencing how governments manage public resources are limited. As a consequence, this simple vertical/horizontal model has proved increasingly inadequate for capturing how budget accountability works (or doesn’t) in the real world; this is especially true in developing countries, where democratic processes and formal oversight institutions can be somewhat fragile and ineffective.