Private sector institutional reform project

The evaluation covered the period through 3/92. The implementing agency, the Institute for Liberty and Democracy (ILD), has increased public consciousness of participatory democracy and the need for a more transparent role of the state in the society. USAID/P considers the project a model of support for the new democratic transformation in the developing world. ILD"s major programs have supported economic deregulation, the simplification of administrative procedures, transparency and accountability in the government decisionmaking process, and public access to property and participation in the economy. One of ILD"s most significant achievements is its analysis of the informal sector, especially the repression of the informal sector by mercantilist forces. ILD"s concepts and ideas do not always fall on fertile ground. The forces which ILD criticizes are deeply entrenched. Peru"s economy is still more mercantilistic than market-driven, and its form of government is decidedly non-participatory. As a consequence, some of ILD"s programs show little impact. ILD is becoming too bogged down in the mechanics of implementing change, rather than focusing on its primary strength as a think tank. Its international activities are also becoming unmanageable, and many requests for international cooperation have had to be postponed due to a shortage of personnel. Over the long run, ILD should concentrate on becoming an independent reform formulator and promoter. A key recommendation is to establish an international affiliate of ILD to allow for substantial expansion of its international operations.