Common use of Strategic Context Clause in Contracts

Strategic Context. The constraints to private sector development in the Republic of Malawi (“Recipient”) are well- known due in part to the large amount of analytical and diagnostic work that has been carried out in recent years. These constraints include the following: poor regulatory environment; weak contract enforcement and limited access to justice; low capacity in property rights institutions; weak policy analysis, formulation and implementation; and limited access to finance. The Investment Climate Assessment of 2006 based on a detailed survey of 300 enterprises, and the annual publication of Doing Business survey indicators, has helped to focus the reform efforts of the Recipient. In response, the Recipient’s Private Sector Development (PSD) program seeks to address most of these constraints through a combination of different projects and programs. BESTAP is only one such project and represents a “bite size” chunk of Malawi’s broader and longer-term PSD program.

Strategic Context. The constraints to private sector development in the Republic of Malawi (“Recipient”) are well- well-known due in part to the large amount of analytical and diagnostic work that has been carried out in recent years. These constraints include the following: poor regulatory environment; weak contract enforcement and limited access to justice; low capacity in property rights institutions; weak policy analysis, formulation and implementation; and limited access to finance. The Investment Climate Assessment of 2006 based on a detailed survey of 300 enterprises, and the annual publication of Doing Business survey indicators, has helped to focus the reform efforts of the Recipient. In response, the Recipient’s Private Sector Development (PSD) program seeks to address most of these constraints through a combination of different projects and programs. BESTAP is only one such project and represents a “bite size” chunk of Malawi’s broader and longer-term PSD program.