ABSTRACT
In 1982, a drought dimmed prospects for continued agricultural growth. Industrial growth reached 9 percent in 1984 and 1985, after having been almost nil in FY 1982 and 3.7 percent in 1983 as the result of political instability. Allocation of credit between the public and private sectors, which in 1982 had slightly favored the State-owned enterprises (SOE), had by 1986 shifted to the private sector by a factor of 2 to 1. The World Bank has generally advocated private sector development; but has shown more interest in backing reform and revitalizing of SOEs than in privatizing them. The New Industrial Policy (NIP) even suggested that, in some "deserving cases" where there was public-private collaboration, management could be awarded to the private investors even though the major shares were held by the public sector Corporation. The IP-'86 is basically a refinement of the NIP of 1982. IP-'86 broadens the scope of NIP-'82 in regard to private sector development.
