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Lesson Learned

Host-country governments and program partners may require incentives in order to implement difficult reforms throughout the Compact period.

Host-country governments and program partners may require incentives in order to implement difficult reforms throughout the Compact period. In Malawi, Compact entry-into-force was used as an incentive for the Government to achieve several key reforms, including the restructuring of debt at ESCOM to clear its balance sheet. However, the Compact was not explicitly designed with similar incentives and accountability mechanisms that could be used during implementation.