Chad - Role of Government

Role of government

Both before and after the Chadian Civil War, the government participated actively in the economy and fostered a liberal economic development policy. It encouraged foreign investment, both public and private, and in 1987 had under review the Investment Code of 1963. The objective was to minimize regulations for the private manufacturing sector and particularly for smalland medium-sized enterprises.

The government considered the public sector a complement to, and not a substitute for, the private sector. Even so, because of the country's narrow productive base and limited cash economy, the government was forced to play an active role in the economy. This participation primarily took the form of mixed public and private marketing enterprises, called parastatals. As a partner in these ventures, the government participated in the planning and controlling of the economy and became a key actor in the service sector through the parastatals, which employed thousands of individuals.

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