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This chapter summarises the institutional diagnostic studies on Bangladesh and Tanzania. Each summary starts with a short account of the recent political history of the country, its economics performances and challenges, and the perceived quality of institutions. It then lists the diagnosed institutional weaknesses and discusses their likely causes and the potential for reforms given the political economy context. The dominant theme in the case of Bangladesh is the sustainability of the development strategy based on Ready-Made Garment exports. Although impressive up to now, development is likely to slow down if exports do not diversify within the RMG sector and without. Among others, a key institutional challenge is how to incentivise such a diversification and overcome the monopolising of public support by the RMG sector. Industrialisation and export diversification is also an issue in Tanzania, whose recent growth seems more demand-driven, thanks to a favourable international context, than supply-driven. There too, a critical institutional challenge is the design and implementation of a meaningful industrial policy, and the effective regulation of the private sector.
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