Final Evaluation of Business Environment Improvement (BEI) Project

The project aimed to improve the business environment in the two countries, with a focus on reducing regulatory barriers and improving the investment climate. The evaluation of the BEI project was conducted by a team of two international consultants, consisting of a Private Sector Development Specialist and a Micro-Economist, assembled by Mendez England & Associates (ME&A). The evaluation was conducted during the period October – November, 2012, and covered only Kazakhstan and the KR, as the project was ended on time in Tajikistan due to lack of funds. The core issues to be determined by the evaluation were: (1) whether the World Bank Doing Business (WBDB) Index and Saving to Businesses Index, computed using the Regulatory Impact Assessment (RIA) methodology, were the optimal set of indicators to measure the success and impact of improvements in the business working environment in Kazakhstan and the KR; (2) if not, what set of indicators would have produced a more realistic assessment of changes in the business working environment; and (3) what changes to tasks, approach, and measurement of results the BEI project suggested for a follow-on project and future programming. The evaluation team conducted a desk review in the UK (October 3-13, 2012), and fieldwork in the KR (October 18-30, 2012) and Kazakhstan (October 31 – November 16, 2012). The team developed an additional ten evaluation questions, which were used as the basis for the evaluation cross-walk (analysis plan). The report presents the consolidated findings of the evaluation, including the team's conclusions regarding the development hypothesis of BEI and the identification of sets of indicators for future business environment improvement interventions. The evaluation team identified several key findings, including the need for a more comprehensive and nuanced understanding of the business environment in Kazakhstan and the KR. The team also found that the WBDB Index and Saving to Businesses Index, while useful, were not the optimal set of indicators for measuring the success and impact of improvements in the business working environment. Instead, the team recommended a more tailored approach, using a combination of quantitative and qualitative indicators to assess changes in the business environment. The evaluation team also made several recommendations for follow-on projects and future programming, including the need for a more systematic and evidence-based approach to business environment improvement. The team suggested that future projects should focus on addressing the root causes of regulatory barriers and improving the investment climate, rather than simply implementing quick fixes or Band-Aid solutions. In terms of implementation details, the evaluation team recommended that future projects should involve a more participatory and inclusive approach, engaging with a wide range of stakeholders, including government officials, business leaders, and civil society organizations. The team also suggested that future projects should prioritize the development of a more robust and sustainable business environment, rather than simply focusing on short-term gains. Geographically, the evaluation focused on Kazakhstan and the KR, with a particular emphasis on the business environment in these two countries. The evaluation team conducted fieldwork in both countries, gathering data and insights from a range of stakeholders, including government officials, business leaders, and civil society organizations. In terms of timeframes, the evaluation was conducted over a period of several months, from October to November, 2012. The evaluation team conducted a desk review in the UK, followed by fieldwork in the KR and Kazakhstan. The report presents the consolidated findings of the evaluation, including the team's conclusions regarding the development hypothesis of BEI and the identification of sets of indicators for future business environment improvement interventions.