Pakistan - Structural Adjustment Credit for the Government of Sindh Province
Cernea, Michael M.
The ratings for the Pakistan - Structural Adjustment Credit for the Government of Sindh Province were as follows: the outcome was satisfactory, the sustainability was likely, the institutional development impact was modest, and the Bank and borrower performance were both satisfactory. The lessons learned indicate that a strong dialog between the Bank and the provincial government at the technical as well as the cabinet level is a key to success for a reform program. The Bank had been in a policy dialogue with the Sindh province for about one and one half years before a lending operation was formally discussed. A high level champion of the policy dialog is needed to win the commitment of technical level civil servants. The provincial Minister of Finance and the provincial Governor all sent signals to the lower levels of government which secured their cooperation with the Bank at the technical level. If solid borrower ownership of the reform program can be established, then it is advisable to provide financial support (an IDA credit) even considering the risks of lending to a sub-national government preceding an election. An accompanying TA project enhances the effectiveness of subsequent (SACs). The Sindh province reform program is comprehensive and complex and there were a number of areas where sustained expertise and capacity building were provided by a Policy and Human Resource Development (PHRD) grant. For projects that support decentralization, it is important to assess beforehand the limits to which laws can be reformed without approval from the central government. Subsequent provincial SACs would benefit from greater donor coordination. Improved coordination will help leverage funding for priority activities in future phases of the reform program. Initially, structural adjustment programs at the provincial level should be broad-based, with increasing focus over time.
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