Small and Medium Enterprise Sector Development Program [Loan 2066-2067- PAK]

The lack of success in restructuring SME Bank also reconfirms lessons identified by IED and other development partners with regard to state bank restructuring, including labor retrenchment and incentive issues, as well as the difficulties associated with privatization such as determining an acceptable sale price and finding reputable strategic investors for a bank with an SME focus. On the positive side, the 7 ADB. 2006. Guidelines for Preparing Performance Evaluation Reports for Public Sector Operations. Manila. 8 SMESDP experience also underscores (i) the importance of adequate stakeholder consultations, and timely technical input and stakeholder feedback in policy formulation and legislation; (ii) the effectiveness of a dedicated, autonomous policy advisory, development, and coordination institution (if a competent managerial resource such as SMEDA is put in place); and (iii) the role that independent performance audits can play in operationalizing matching grant schemes, such as the BSF.