What happens when carefully crafted laws are not properly or fully enforced?
Back in 2009, CIPE partner the Bangladesh Women Chamber of Commerce and Industry (BWCCI) advocated for a number of local and national level policy reforms by endorsing the first ever Women’s National Business Agenda (WNBA).
The WNBA suggested policy changes concerning social and financial barriers faced by women entrepreneurs. This effort led the Central Bank to start issuing collateral-free loans for women entrepreneurs. The policy was initially a success and helped provide nearly $23 million in loans to 3,000 women.
However, due to the lack of continued monitoring, over time many banks began changing their lending fees or stopped complying with the law all together. This phenomenon is what CIPE calls an implementation gap – when laws on books are not practiced in real life. Since April 2013, with CIPE support, BWCCI has been trying to close this gap for women entrepreneurs in Bangladesh.