Effect of Policy and Policy Reforms on Non-Agricultural Enterprises and Employment in Developing Countries: A Review of Past Experiences

摘要

Two sets of issues are explored in the paper: (1) the effects of government employment and enterprise policies and policy reform on non-agricultural enterprises in developing countries; and (2) the experience of donors and host governments and host governments with the process of policy change. Analysis focuses on the differential impacts of policies on firms of varying sizes and in different localities and begins with an examination of the nature and magnitude of policy-induced distortions in factor (i.e., labor and capital) markets and in trade (i.e., on competitive position and distribution of income), showing that distortions fall unevenly on enterprises of different sizes. The impact of factor and market distortions on enterprise efficiency, employment, and size is also considered. An analytic framework is proposed for reviewing the policy process, and four approaches to policy change are outlined, with emphasis on the alternative roles of donor agencies in policymaking. Lessons learned are briefly summarized in conclusion, and an extensive bibliography is appended.