Commercial Legal Framework (CLIR)
Overview
In 1998, USAID contracted Booz Allen Hamilton to develop a methodology and indicator tool that could be used to provide quick, cost-effective analyses of progress in commercial law reform. USAID’s primary objective in supporting this effort has been to help accelerate economic growth by promoting the development of a legal and regulatory environment supportive of commercial activity. Generally, USAID’s CLIR assessment methodology seeks to:
- Assess the degree of effectiveness of reform efforts,
- Provide a methodologically consistent foundation for identifying and describing root causes of the implementation-enforcement gap, and
- Provide analytical and planning tools and metrics that will help USAID design new strategies and approaches for sustainable, cost-effective interventions.
The CLIR methodology analyzes 15 key areas of law that affect commercial activity. These areas are analyzed through a four-part method of inquiry. Each set entails a detailed look at a single subject matter area covers its legal framework, implementing institutions, supporting institutions, and social dynamics. This four-part approach provides a comprehensive basis on which diagnostic teams, beginning in 1998, could identify weaknesses in a given environment and make recommendations for closing those gaps. Between 1998 and March 2007, the indicators served as the primary tool of assessing the conditions and opportunities for reform in 24 countries.
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