Mauritania's 1998-2001telecommunications reforms resemble many World Banksupported reform programs where overcoming capacityconstraints can determine success in achieving developmentoutcomes. Overcoming capacity constraints enabled thisdesert nation of over 2 million largely nomadic inhabitantsto attain unanticipated levels of outcomes in three years oftelecommunications reforms. New private investment of US$100 million in telecommunications was attracted over twoyears, equivalent to 10 percent of GDP; telephone lineaccess multiplied twenty-fold; 6,000 newtelecommunications-related jobs were created in the informalsector in the capital city (Noukachott) alone; and amultisector regulatory agency was established which is nowregarded as a model in Africa. From lacking critical skillsat the outset of these reforms, Mauritania became a sourceof lessons for neighboring countries on how to competitivelytender utility licenses, effectively regulate utilities in acompetitive setting, and privatize a telecommunicationsoperator. Support for this capacity enhancement came fromrelatively modest external assistance with an estimated costof slightly over one million dollars (World Bank Group stafftime as well as consultancy support).