Investment Climate Reforms Program - Subprograms 1 and 2)

Political support, and ultimately political accountability, is an essential component of institutional reform. An early back-to-office report (September 2014) stated that the government appreciated the importance of promoting a better business environment in the context of the private sector’s contribution to growth in gross domestic product. The government set up a Consultative Council on Reduction of Business Inspecting Agencies, chaired by the First Deputy Prime Minister to monitor implementation progress. All policy actions were completed. This demonstrates that political support, and ultimately political accountability, is an essential component of institutional reform. This is on top of the support received at the civil service level. This approach contributed primarily difficult reforms such as reducing the costs of doing business and reducing the number of inspection agencies. Similarly at program level, specific agency rationalization actions were identified in September 2016. Political leadership was important to deliver these actions prior to subprogram approval. This point is reinforced by discussions in May 2015 when ADB requested stronger political support for subprogram 1 to achieve timely completion.