A Cost-benefit Analysis of Government Services to Support MSMEs in Malawi - Technical Report
The Malawi Vision 2063 aspires that Malawi will be a preferred destination for inward investment. Leveraging digital technologies to increase the private sector’s dynamism, broadening the tax base, and increasing investment in infrastructure, and limiting unnecessary regulatory burdens are crucial to reach that goal. Reducing the high degree of informality in the economy and expanding the narrow tax base are also critical components of achieving this goal. To support this objective, the National Planning Commission supported research and analysis to answer the following questions: What are the most effective ways to improve implementation in government? How can the public sector be reformed to most effectively improve service delivery? How can technocratic and political incentives be aligned? What are the context-relevant good practices in instituting and sustaining accountability mechanisms for implementation of development plans and policies? This report describes the research plan and resulting cost-benefit analysis (CBA) proposed in response to the above questions. The team first prepared a comprehensive research agenda and then reviewed the literature and intervention options on digital solutions, decentralization, public sector capacity development and performance management, and public financial management aspects of the governance. More than twenty potential interventions were identified during this scoping phase.