2.1 From implementation to evaluation Many of the reforms have ventured into uncharted territory. Assessing the effects of financial sector reforms in a structured way is thus crucial. Evaluation of reforms needs to take into account how the macroeconomic environment has changed, what the short- and the long-term effects of reforms are, and how reform effects differ across countries.
One key challenge for evaluation is that many of the costs of financial reforms borne by financial participants – such as enhanced reporting costs – tend to be felt immediately and are often observable.