IIFC has adopted a strategy of focusing mainly on specific transactions or projects and resolving the pertinent policy issues contractually on a case-by-case basis, rather than pursuing wider policy and sectoral reforms at the beginning. It does not devote limited resources to prepare studies that are not directly linked to specific transactions. It is, however, recognized that in the long run, transactions or project-related activities could be constrained by lack of appropriate policies and deficiencies in the legal and regulatory environment. As such, IIFC also pursues policy and sector reforms in support of private sector participation in the infrastructure sector.
An example in this regard is the preparation of the "Private Sector First Policy", a policy document for the Government that defines government policies and strategies in support of private sector participation.4 It outlines the roles of the Government and IIFC in supporting the private sector. It also describes the mechanism through which prospective private sector projects could be identified and included in the Government's annual development programme and their consistency with the existing plans and other projects ensured.
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4 The draft "Private Sector First Policy" is available at <http://www.iifc.net/ psf_policy_revised_date_20jan03.pdf> (2 June 2003).