ABSTRACT
This chapter discusses the nature of policy and institutional changes that will be required in the early years of the coming decade to meet the draft Strategy’s goals of growth, employment and poverty reduction. But improving the climate for day-to-day operations of private investors – making interactions with the bureaucracy easier -- will necessitate deepseated behavioral changes in the way private activity is perceived by the civil service, the dominant state owned commercial banks, and most importantly, by the political leadership. Foreign firms invested in majority-foreign-owned joint ventures or in wholly foreign-owned enterprises. The domestic private sector, especially household-enterprises, has had an important role in manufacturing. By permitting foreign investors to set up export-oriented enterprises through simple registration, without waiting for discretionary approvals, the Government has addressed a major investor grievance in an important area. Financial policies have an important impact on capital mobilization and development of enterprises.
