The Administrative Environment: An Unrecognised and Neglected Key to Greater Sustainability in Development Lending

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Abstract
Many Third World capital project investments lack “sustainability” — they are often successfully designed and implemented but then fail to operate well enough or long enough to realise the full intended benefits. It is argued here that the administrative environment within which such projects operate is a major determinant of their suitability. The remedy proposed is for international development finance institutions to establish special units to facilitate a creation of a supportive administrative environment.

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