Private sector industrial development strategy

With the aid of data obtained from a survey of 46 private companies and 14 banks, this report reviews the economic impacts and policy implications of the Law 43 development strategy. The report first reviews the experience of private companies, both those formed under Law 43 and others, and notes the private sector"s growing share of production. Proposals for further stimulating private sector growth are listed. The second part of the paper examines the role of industrial exports in private sector development and profiles the export capabilities of the surveyed companies. Export trends and current and future industrial export policies are also discussed. A final section treats industrial financing for private sector development, the structure of financial institutions, private sector financing needs, and financing policies for the 1980"s. Each section concludes with a consideration of the possible contributions of external donors to the development strategy. Ten tables of statistics are attached.