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Mauritania and Senegal: Regulatory Reform, Market Performance and Poverty Reduction

Jacobs, Cordova & Associates analyzed regulatory reform, market performance, and poverty reduction in Mauritania, reported the results to the Mauritanian government in October 2002. The reports, “REGULATORY REFORM, MARKET PERFORMANCE, AND POVERTY REDUCTION IN SENEGAL AND MAURITANIA” concluded that “The legacy of interventionist and inefficient rules and practices inherited from previous economic policies is still prevalent, and many policies of the state continue to be captured by private interests. The domestic policy environment is hostile to private enterprise start-ups, investment, and innovation. Scope for market activity remains constrained due to slow privatization. Serious competition abuses are tolerated. State intervention through actions such as subsidies for failing enterprises, interference in rate-setting in liberalizing industries, and hesitation in opening up even services such as telecommunications are reducing investment and damaging market performance. Regulation of vital network industries, including electricity, telecommunications, water, and transport, suffers from inconsistent application; gaps in institutions, policies, and rules; and confusion in the role of the state as regulator and manager. Regulatory uncertainty has reduced the value of state assets, such as in mobile telephony, where the government is dissatisfied with the prices offered for licenses.”

Mauritania and Senegal, World Bank 2003