B.E. Assessment

Review of experiences in small enterprise policy reform in UR Tanzania, 2002

    Methods for info gathering
    The review sought to take stock of donor efforts in this area and draw up lessons and best practices for future interventions by governments, donors and other agencies as well as for the national set-up of future policy formulation processes. The methodology included a review of relevant documents, including previous studies and reports, policies, regulations and programmes; interviews with staff of donor agencies, government departments and private sector organisations which have been involved in the reforms; and a stakeholders┬┐ workshop to discuss and validate the draft report. The interviews were mainly held in June and July 2002, while the stakeholders┬┐ workshop was held on 10th July 2002.

    Summary of results
    Leadership and Ownership. Effective and efficient collaboration calls for a strong co-ordinator and leader. This leader should be a local one. This in turn depends on available capacity. The government, private sector and donors should deliberately and systematically aim to build this capacity.

    Increasing Understanding among Donors. Donors vary in terms of "cultures" (values, orientations, etc). Experience shows that involving the different donors helps moderate their attitudes and behaviours, bringing them closer and closer to the mainstream.

    Creating a Common Language among Collaborators. Lack of a common perspective is a serious communication barrier and may make it very difficult to move to sector-wide approaches and basket funding.

    Learning to Collaborate. Donor collaboration and the need for local ownership and co-ordination of donors are new issues for which there is not much formal knowledge. So far skills for dealing with the challenges involved are acquired by trial and error by donors, government and other stakeholders. The future holds many challenges which may prove daunting. These include dealing with basket funds, enhancing government ownership, joint backstopping by multilateral agencies, etc.

    Creating Counterparts in Government. So far, there is no "natural" counterpart for SME or private sector support in government. There is need to identify one counterpart, who will be in a position to handle all private sector issues. Also, there is need to have a focal point for women entrepreneurship development.

    Sustaining Reforms. To sustain reforms, investment in strengthening business associations should be intensified. This must be done in a way that does not compromise the sustainability of the associations.

    Associated Activities and Documents
    Synthesis documents
    »Donor experiences in supporting reforms in the business environment, White and Chacaltana/Donor Committee, 2002