The economic reform programmes introduced in many developing countries during the 1980's stressed the need for a propitious enabling environment for the private sector. Initially there were high expectations that a package of macroeconomic reforms ("getting the
prices right") would give quick dividends in terms of economic growth. There has been growing disappointment with the growth record in many developing countries. During the 1990's only 18 out of 117 countries with populations of more than half a million people
were able to sustain growth rates exceeding those of industrialised countries.1 Today, there is widespread awareness that much more comprehensive investment climate reforms are required and that such reforms are time consuming and challenging exercises.