Federated States of Micronesia: Private Sector Development Program
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Validates the completion report's assessment of the project, which aimed to improve the policy and legal environment for private sector development in Micronesia. IED overall assessment: Less than successful
In 1999, the Federated States of Micronesia embarked upon a program of economic reforms to reduce the role of the public sector in the economy and to increase self-reliance. Substantial cuts in the size of government had been achieved, but structural change toward greater private sector employment and development was slow to occur due to fundamental constraints in the country's legal and institutional structure. Thus, the country needed support from the ADB through the Private Sector Development Program to establish an open, competitive economy that was conducive to private sector development.
This report validates the completion report's assessment of the project which aims to improve the policy and legal environment for private sector development, and strengthen the capacity of the government of Micronesia to manage land, labor and capital resources. IED overall assessment: Less than successful