Sector: Y - Development Cooperation

Brief Description

Poverty Reduction Strategy Papers



See the comment on the PRSP process in Tanzania.


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 , 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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