Category 501 - enabling environment study . : CD4-97/2002E-PDF

"The 501 category of Private Sector Development pertains to the mix of national policies (macro-economic, social and political) and institutional capacities (e.g., enforcement of the rule of law, effectiveness of regulatory instruments, pervasiveness of corruption) which are determinant in the shaping of conditions that are either conducive to, or hinder the development of the private sector in beneficiary countries. It is a critical segment of development programming given its potential to influence events from the sector to the individual firm level, for instance policies related to property rights or incentives to support the development of grass-roots savings and credit organizations. In addition, structural adjustment programs addressing inflation, fiscal deficits, the privatization of state enterprises, etc. help determine the extent to which a given country is “enabled” to accede to global markets and attract foreign direct investment"--Introduction.

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