Policy reforms are at the core of the EBRD’s work to support the countries where we work to make the transition to a competitive, well-governed, green, inclusive, resilient and integrated market economies.
Such policy reforms foster well-functioning institutions, laws and regulations to improve the business climate and create a level playing field, unlock investment opportunities and ensure the development of the private sector over the long term.
How we work on policy reform
The EBRD engages with authorities in the countries were we invest and promotes a dialogue between public and private sectors to help identify policy and institutional transition challenges to support sustainable and inclusive growth.
We formulate policy and investment objectives through our country diagnostics, which identify the main obstacles to entrepreneurship and private sector development. Each diagnostic informs the EBRD’s policy engagement with national authorities.
Based on this analysis and the feasibility of the desired course of action, country strategies are devised to identify priorities for each country, which are then translated into objectives for our investments and policy reforms.
The EBRD then delivers these policy reform activities through its advisory, capacity building and technical assistance projects.
Policy reform in action
Some examples of our policy work include:
- In Estonia, we supported the adoption of Covered Bond law, and the development of a pan-Baltic capital market.
- In Serbia, our policy engagement takes the form of our participation in the Non-Performing Loan working group, which led to the government’s adoption of an NPL resolution strategy, and in policy advice for Serbia Railways, leading to its unbundling into three operating companies.
- In Egypt, our policy work focuses on capacity building for relevant institutions to improve competition, as well as on the development of a transparent and modern public procurement framework.
- In Armenia, we supported the government to improve the regulatory and institutional framework for renewable energy and energy efficiency, thus fostering the Green Economy Transition.
- In Uzbekistan, we supported the government to set up a Foreign Investors’ Council, and assist investment climate reform measures.
Policy reform during the coronavirus pandemic
The coronavirus pandemic will have significant consequences for the EBRD’s regions. We will support governments with measures to cope with the immediate disruption of the crisis – including capacity building to address businesses’ concerns and mitigating vulnerabilities across different sectors.
Our Solidarity Package of financial and policy support will ensure that vital services can continue to be delivered to citizens while mitigating the worst impact of the crisis for small and medium enterprises. The EBRD will also support broader policy response and recovery strategies that go beyond immediate needs.
The EBRD’s role in shaping policy responses and policy reforms during the coronavirus pandemic will be to preserve well-functioning markets and protect transition across all six transition qualities.