Most of the benefits associated with the reforms supported under the cluster program were conditional on the final reforms to be supported under a subprogram 3, which never eventuated. To the extent that this caused reform momentum to be lost or take a risky direction, this approach risked delaying (at a minimum) or wasting years of reform effort (TA, financial resources and government commitment). The decision to cancel subprogram 3 processing could have been accompanied by an immediate effort to (i) identify reform areas that were making progress in meeting their respective indicators, but at risk of losing momentum; and (ii) provide TA or resources on (for example) a project basis. This would probably have resulted in additional, more sustainable development results. Improving the investment climate in rural areas and increasing private sector participation is a long-term endeavor that merits ongoing reform efforts, using different assistance modalities if necessary.
Sindh Growth and Rural Revitalization Program