The Institutional Environment Assessment(IEA) carried out in Sao Tome e Principe in October-November1996, sought to assist the government in identifying theroot causes of the country's poor economic performanceand in formulating strategies to address them. It was aself-diagnostic exercise based on the active participationof local stakeholders so as to foster ownership of thefollow-up reforms. It entailed comprehensive data collectionand analysis through field reviews (by three working groupsfocusing on technical, administrative, and structuralproblems respectively); desk reviews of relevant consultantreports and economic and sector work; and a survey ofgovernance and indigenous institutions impacting on economicmanagement. A 4-day assessment workshop was held tosynthesize, analyze and prioritize the information gathered,and to map out future strategy. Follow-up workshops arebeing held to formulate an implementation plan and apportionresponsibilities between implementing agencies. Lessonslearned:the IEA is an appropriate instrument foridentifying the major institutional causes of economicunderperformance; and the involvement of all the keystakeholders was a positive and strategic move. In manycases, it will be these stakeholders who will ensurefollow-up on measures agreed, thus making government more accountable.
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