JC&A analyzed regulatory reform, market performance, and poverty reduction in Mauritania and reported the results to the Mauritanian government in October 2002. The report “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. The scope for market activity remains constrained due to slow privatization. Serious competition abuses are tolerated. State intervention through subsidies for failing enterprises, interference in rate-setting in liberalizing industries, and hesitation in opening services such as telecommunications reduce investment and damage 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 state’s role 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 license prices.”
Mauritania and Senegal, World Bank 2003
