"disadvantaged region") that provides such<sup>enticementsastaxholidays.Inregionsinwhich</sup> mine closure has taken place, it is also common<sup>to promotetheuse of the industrial space and</sup> surface buildings of the closed mines for<sup>alternative industrial purposes.</sup> 59. Severance payments to laid-off workers<sup>are alsosometimesconsidered by policymakersasa</sup> form of seed capital that workers will<sup>use tostart businesses,and/orto migrate.Inthecountries</sup> under review here, this expectation was<sup>mostprevalentinRomania,wherethetermsof the</sup> severance package were more generous than<sup>in the othertwo countries.</sup> 60. Among the general observations that<sup>can be made on the basis of the researchresultsfrom all</sup> locations is that there is a long and steep<sup>"learning curve"of several yearsbeforethevarious</sup> local development efforts and active<sup>labormarketpoliciesareestablishedandbegintohavea</sup> positive impact. There is a discrepancy<sup>betweentheswiftnessof theemergenceof theproblem</sup> (large-scale unemployment following industry<sup>downsizing)and thecapacityof responsesystems</sup> on all levels to react, even under the<sup>bestofcircumstances(whichnormallydonotprevail).</sup> Romania is arguably at one extreme in this<sup>regard,havingstimulateda mass downsizingof the</sup> industry in 1997 through a voluntary<sup>separationpackagewithouthavinginplaceany</sup> mechanisms to absorb the shed labor<sup>ortootherwise fosterjob-creation.</sup> Since then, the Government has been slow to implement<sup>itsstrategy forlocal development, and criticalelements</sup> of the strategy for dealing with the severe<sup>employmentproblem of the miningregionsare not yet</sup> in place. These research findings are consistent<sup>withstudiesof activelabor market programs,</sup> even in countries where they have been<sup>carried outforyearsandwheremoreresourceshave</sup> generally been available to facilitate program<sup>implementation and tomonitorandevaluate</sup> programs than has been the case in the<sup>countriesin which research was carriedout.'8</sup> 61. The case of Russia (which also experienced<sup>a longlearningcurvewithlostopportunities</sup> along the way) is worthy of mention in view of<sup>therelativelylongperiodof theconsistent and</sup> well-financed implementation of the Government's<sup>coalsector restructuring programand</sup> specifically the local development programs<sup>that were launchedin 1996andarestillreceiving</sup> financing. An evaluation of these programs<sup>wasrecentlycarriedout,andthe resultsofthis</sup> evaluation are described in the country section<sup>below.</sup> 62. The second general observation is that<sup>whilesupporttoindividualandsmall businessesis an</sup> important component of the policy response<sup>totheemploymentproblemthatarisesfrom mine</sup> closure, and one whose potential has not<sup>beenfullyrealizedinmostlocations,itisequally</sup> important to recognize the limit to the job-creation<sup>andeconomicdiversificationcapacityof</sup> policies supporting microcredits, loans<sup>tosmall businesses,etc.</sup> The research found several examples of such support programs<sup>that respondentscharacterizedassuccessfulandusefulbut</sup> "a drop in the bucket" of the total need. Moreover,<sup>thedevelopmentof smallbusinesses,which</sup> are overwhelmingly oriented to local markets<sup>and householdconsumption,isconstrainedby the</sup> limited household purchasing power in communities<sup>impactedbymineclosure.</sup> There is a qualitative limit to these programs as well:<sup>theskills andappetite forriskthatarerequiredto</sup> survive as a small entrepreneur, or even<sup>asanemployeeof a smallentrepreneur,areparticular,</sup> and this research is consistent with the findings<sup>of manysocialsurveysthatindicatethat onlya</sup> small portion of the population considers<sup>thesmallbusinesssectorasaviable optionfor</sup> themselves. And while the small business<sup>sectorisbeginningtomakeanappreciable</sup>

> " See, for example, Dar (1999).

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