Sector: Y - Development Cooperation


Brief Description

Poverty Reduction Strategy Papers

URL: http://go.worldbank.org/LYE7YNYBH0

Parties

See the comment on the PRSP process in Tanzania.

Objective

Poverty Reduction Strategy Papers (PRSPs) were introduced in 1999 by the World Bank and the IMF as a new framework to enhance domestic accountability for poverty reduction reform efforts; a means to enhance the coordination of development assistance between governments and development partners; and a precondition or access to debt relief and concessional financing from both institutions' HIPC Initiative.

As explained at http://go.worldbank.org/CSTQBOF730 , a PRSP sets out a country’s macroeconomic, structural, and social policies and programs to promote growth and reduce poverty, as well as associated external financing needs. Countries will typically prepare a PRSP every three to five years in a participatory process involving a broad range of stakeholders. The core principles underlying the PRSP approach suggest that PRSPs would be expected to include:

  • A description of the participatory process that was used — A PRSP will describe the format, frequency, and location of consultations; a summary of the main issues raised and the views of participants; an account of the impact of the consultations on the design of the strategy; and a discussion of the role of civil society in future monitoring and implementation.
  • Comprehensive poverty diagnostics — A good understanding of the poor and where they live allows the PRSP to analyze constraints to faster growth and poverty reduction, in particular:
    • macroeconomic constraints,
    • social constraints,
    • structural constraints, and
    • institutional constraints
  • Clearly presented and costed priorities for macroeconomic, structural, and social policies — In light of a deeper understanding of poverty and its causes, the PRSP sets out the macroeconomic, structural, and social policies that together comprise a comprehensive strategy for achieving poverty reducing outcomes. It is important that policies are costed and prioritized as far as possible so that they do not become a "wish list."
  • Appropriate targets, indicators, and systems for monitoring and evaluating progress — A PRSP will define medium and long-term goals for poverty reduction outcomes (monetary and non-monetary), establish indicators of progress, and set annual and medium-term targets. The indicators and targets should be consistent with the assessment of poverty and the institutional capacity to monitor, and the policy choices in the strategy.

Time Window

Started: 1999
Ends: —


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