The Institutional Environment Assessment (IEA) carried out in Sao Tome e Principe in October-November 1996, sought to assist the government in identifying the root causes of the country's poor economic performance and in formulating strategies to address them. It was a self-diagnostic exercise based on the active participation of local stakeholders so as to foster ownership of the follow-up reforms. It entailed comprehensive data collection and analysis through field reviews (by three working groups focusing on technical, administrative, and structural problems respectively)
desk reviews of relevant consultant reports and economic and sector work
and a survey of governance and indigenous institutions impacting on economic management. A 4-day assessment workshop was held to synthesize, analyze and prioritize the information gathered, and to map out future strategy. Follow-up workshops are being held to formulate an implementation plan and apportion responsibilities between implementing agencies. Lessons learned: the IEA is an appropriate instrument for identifying the major institutional causes of economic underperformance
and the involvement of all the key stakeholders was a positive and strategic move. In many cases, it will be these stakeholders who will ensure follow-up on measures agreed, thus making government more accountable.