Impact Evaluation of A.I.D. Policy Reform Programs in Dominica and Grenada

摘要

The impact evaluation examines policy reform programs supported by the Agency for International Development (A.I.D.) in two small Caribbean island countries, Dominica and Grenada. Dominica now has in place a tax system that provides good economic incentives, while Grenada does not; policy reform was much more successful in Dominica. During the reform period, both countries were able to sharply improve their economic growth rates; and Grenada, the policy reform failure, had a growth rate that was slightly higher than that of Dominica, the policy reform success. Policy reform in Grenada has been seen as an externally enforced failure, while in Dominica it has been viewed as an internal success. When the next economic shock comes and it is time for more reforms, it is Dominica's Government that will probably be better able to deal with the policy issues and the needed reforms.