The UK Government’s Department for International Development (DFID) have just published to reports I co-authored this year with Peter Fortune. These present the evidence of the impact of business environment reform in two areas.
Over the past few years, business environment reform has increasingly been seen as an important factor for investment levels in any given economy. Such reform aims to promote the development of markets that encourage competition and enhance other development interventions. Indeed, many agencies consider an enabling business environment as one of the pre-requisites for economic growth and poverty reduction. This rapid evidence assessment addresses two topics:
- The impact of business environment reform on investment
- The effectiveness of linking business environment reform and investment facilitation and promotion services
This rapid evidence assessment focuses on the poverty impacts of business environment reforms in terms of increasing incomes and employment. The overriding finding suggests that business environment reform does contribute to poverty reduction, but through indirect links rather than a direct impact. This paper explores these indirect effects of business environment reforms on poverty in detail.