The broad sector approach to investment lending: sector by Peter Harrold

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From the same country we also have the example of the Zambia Roads Program (Box 3(b)). These two operations remind us that "local stakeholders" does not just mean the government, so much as the beneficiaries of the program as a whole. What seems key about the approach in this case was the timing of consultation with beneficiaries. The government did not formulate a policy framework, and then circulate it for comments. Rather, it created a structure for the determination of policies, in which private sector representatives, direct beneficiaries, and officials worked together to develop the policy framework in line with the government's initial concept paper on the sector.

8 For example, the Bank might be in general, unsympathetic towards the construction of new hospitals. However, some hospital construction will be necessary, and if the Bank is reassured that others will finance high priority tasks in the sector, the Bank should be willing to finance the hospital under the SIP (see Box 2). Page 9 Box 2: A SIP Emerging from Sector Work Mozambique HealthThe health of the Mozambique people has been under severe threat from many sources: a bitter civil war that dislocated millions of people; a very severe drought generating malnutrition; and the breakdown of rural health services as budgets and safety nets collapsed during the civil war.

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