<table><tr><th>From:</th><th>Jeffrey Epstein &lt;jeevacation@gmail.com&gt;</th></tr><tr><td>Sent:</td><td>Friday, May 6, 2011 11:37 AM</td></tr><tr><td>To:</td><td>Terje Rod-Larsen</td></tr></table>

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IdeasLab on Building =nstitutions in Africa

Presentations and in-depth group discussions will focus on:

Idea 1: Writing constitutions in post-conflict Africa

Idea 2: Formalizing the informal economy

Idea 3: Rethinking regional economic integration

Idea 4: Controlling corrupt corporations

Key Points

• Institutions are only as effective as their legitimacy, their capacity to deliver and their strategies.

• M=ltinational corporations are more influenced by conventions and laws on corruption in their home base than by local regulations, which are often poorly enforced.

• The informal se=tor in African countries is unprotected and dedicated policies to address this complex situation are required.

• Building regional economic integration on the back of weak national institutions may undermine the entire process.=/li>

Synopsis

Idea 1: Writing constitutions in post-conflict Africa

African constitutions still carry remnants of the artificial states associated with colonialism and structural underdevelopme=t, exacerbated by the wave of authoritarian states in the post-colonial era. B=t recently, the process of constitution making has become more inclusive and =as enshrined democratic systems and human rights. A challenge for constitution making in Africa is to create national unity in states with many disparate groups and ensure executive accountability to the people.

Constitutions have a shelf life in African countries and there are examples of where these need to be renegotiated to align them with the changing demands and requirements of the population.

China provides an interesting example of a country that does not have a democratic constitution but has lifted million= of people out of poverty, which raises questions about the relationship betwee= democracy and development.

Idea 2: Formalizing the informal economy

The informal sector, which comprises the largest portion of Africa's private sector, operates without protection in terms =f health and safety, labour laws and other issues, leaving them vulnerable. B=t this economically active group is a complex collection of different types o= actors and the challenge is to find a way to regulate them so that they ben=fit both the workers and society as a whole.

Idea 3: Rethinking regional economic integration

Economic integration in Africa tends to follow Western models that aim to establish economic and monetary union. But this requires building regional superstructures that are often inefficient and ineffectiv=.

African regional organizations need to adapt the European models to suit the continent's specific circumstances, focusing =ore on trade facilitation, which is currently weak, than on building large regi=nal bureaucracies. An added problem is layering such structures over already we=k national institutions. It raises the question of whether you need strong st=tes before you integrate them or whether you strengthen states through integrat=on.

Idea 4: Controlling corrupt corporations

Institutions and regulations to regulate capital flows and multinationals' behaviour are weak in Africa, if they exist at =11. This leaves the way open for opaque and corrupt activities, particularly wh=re top officials or business people consider themselves to be above the law.</=>

Multinational corporations' behaviour is more influenced by internatio=al anti-corruption conventions and laws in their home nations than by local regulations, which are often poorly enforced and distort the playing field =or ethical companies. The growing number of new international conventions is making it difficult for companies to ensure compliance with them but it is =lso making it harder for businesses to circumvent them.

Weak legal systems in Africa mean that multinationals often take legal battles offshore to other jurisdictions but this, arguably, weakens state institutions by not forcing them to tackle controversial or difficult issue=.

Discussion Leaders

Paul Benjamin, Professor, Department of Commercial Law, University of Cape Town, South Africa

Halton Cheadle, Professor of Public Law, University of Cape Town, South Africa

Peter Draper, Senior Research Fellow, Economic Diplomacy Programme, South African Institute of International Affa=rs (SAIIA), South Africa; Global Agenda Council on Trade

Charles Goredema, Head, Organised Crime and Money Laundering Programme, Institute for Security Studies (ISS), South Afr=ca

Facilitated by

Scott Weber, Director-General, Interpeace, Switzerland; Young Global Leader

Disclosures

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The information contain=d in this communication is confidential, may be attorney-client privile=ed, may constitute inside information, and is intended only for the use of the a=dressee. It is the property of Jeffrey Epstein Unauthorized use, di=closure or copying of this communication or any part thereof is strictl= prohibited and may be unlawful. If you have received this communication in error, p=ease notify us immediately by return e-mail or by e-mail to jeevacation@gmail.com, =nd destroy this communication and all copies thereof, including all attachm=nts. copyright -all rights reserved