Poverty Reduction Strategy Papers (PRSPs) Overview and Next Steps

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Poverty Reduction Strategy Papers (PRSPs)
Overview and Next Steps

• Expert Group Meeting on MDGs and PRSPs
• Egypt, December 2004

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Presentation outline

1. PRSP Fundamentals
2. Evaluating and Assessing the PRSP Process
3. The Way Ahead

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1. PRSP Fundamentals
Some milestones
OECD/DAC Shaping the 21st Century IDGs May 1996
The WB and the IMF launch the HIPC
Initiative Sept. 1996
The WB introduces the CDF, piloted in 13
countries Jan. 1999
The WB and the IMF enhance the HIPC initiative to
strengthen focus on poverty reduction Sept. 1999
The WB and the IMF introduce the PRSP Sept. 1999
UN Millennium Summit adopts MDGs Sept. 2000
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The principles underpinning the PRSP-The
Comprehensive Development Framework

• Long-term Vision
• -short-term and medium-term policies integrated
  into a national development strategy linked to a
  long-term vision
• Country Ownership
• -national institutions and stakeholders identify
  priorities and objectives of the strategy with
  technical support of development assistance
  agencies
• Country-led Partnership
• -coordination, alignment and harmonization of
  development assistance under government
  leadership
• Focus on Results
• -continuous evaluation of performance to review
  and update policies and programs

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The mechanics of the PRSP
Review
Formulation
Implementation
Annual Progress Reports
Full PRSP
I-PRSP
1 year
3 years
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As of December 2004 56 countries are
participating in the PRSP process

• 13 countries with an I-PRSP only
• 43 countries with a full PRSP
• - 3 countries (Burkina Faso, Uganda, Tanzania)
  have completed three progress reports
• - 4 countries (Mauritania, Mozambique,
  Nicaragua, Albania) have completed two progress
  reports
• - 14 countries (Azerbaijan, Ghana, Honduras,
  Ethiopia, Guyana, Malawi, Rwanda, Vietnam,
  Zambia, Kyrgyz Republic, Mali, Tajikistan,
  Guinea, Niger) have completed a progress report

beyond the 42 HIPC eligible countries!
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The World Bank supports the PRSP through Poverty
Reduction Support Credits (PRSCs) in 22 countries

• First PRSC launched in 2001 (Uganda) and
  replacing Structural Adjustment Operations
• Addressing not only macroeconomic framework but
  also social agenda
• PRSC supporting a comprehensive reform program
  linked to the PRSP
• Multi-partner budget initiatives encourage
  external partners to coalesce around a common
  policy matrix, including the World Bank, other
  MDBs and multilaterals, and bilaterals (e.g.
  Uganda, Tanzania, Mozambique)

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2. Evaluating and Assessing the PRSP Process

• 2004 OED independent evaluation of the World
  Banks support to the PRSP process
• - 10 country case studies 4 jointly with IMF
  IEO - (Albania, Cambodia, Ethiopia, Guinea,
  Mauritania, Mozambique, Nicaragua, Tajikistan,
  Tanzania, Vietnam) with stakeholder surveys
• 2004 World Bank and IMF Staffs assessment of
  progress in implementation of PRSPs
• - building on 2000, 2001, 2002 and 2003 reviews
  and assessments
• 2003 World Bank CDF Progress Report
• - building on 2001 assessment of CDF principles
  implementation
• - 48 countries with I-PRSP and PRSP

and many others undertaken outside the World
Bank and IMF (e.g. SPA/ODI, UNDP Evaluation
Office, Oxfam)
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Main Findings
Long-term vision

• Integration of sector programs in an overall
  strategy helped policymakers to link sector
  strategies with poverty reduction

• Progress in setting policy priorities for
  reducing poverty

• PRSP helping countries to focus on a medium-term
  prospective
• Insufficient links between long-term and
  medium-term

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Main Findings (cont.)
Country ownership

• WB/IMF conditionality
• Limited stakeholders involvement in
  implementation
• No mechanism to adapt PRSPs to differing country
  conditions

• Deeper involvement of central and local
  governments
• PRSP not yet aligned with country processes

• Mechanisms for sustained dialogue between
  government and country stakeholders rarely in
  place
• Political cycles often affecting PRSPs

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Main Findings (cont.)
Country-led partnership

• External partners have not yet defined how
  program content will change (but new instruments
  in place)
• Limited prioritization of PRSPs makes alignment
  difficult to monitor

• PRSP not yet become a common framework for
  aligning development assistance

• New instruments better supporting country
  structures
• Alignment made difficult by limited
  prioritization
• Capacity building not yet fully coherent

SWAps, multi-partner budget support, joint
analytical work
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Main Findings (cont.)
Focus on results

• ME systems at an early stage
• Information not generally linked to
  decision-making

• ME systems relying on poor data and indicators
• Limited institutional arrangements for monitoring
• Insufficient alignment of external and internal
  ME

• External partners often supporting disparate
  initiatives for ME
• Excessive number of indicators
• Limited role of Parliaments in monitoring and
  reviewing progress

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3. The Way Ahead

• Aligning the PRSP with country decision-making
  processes
• -PRSP strengthening rather than replacing
  existing national planning instruments (e.g.
  Uganda, Vietnam, Mozambique, Yemen)
• -Putting the PRSP more on the agenda of
  established or emerging mechanisms for
  sustainable dialogue
• -Annual Progress Report to be aligned with
  country processes (e.g. Mozambique)
• -JSA becoming an advisory tool

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The Way Ahead (cont.)

• Enhancing the role of the PRSP as a partnership
  framework guiding alignment and harmonization of
  external assistance
• -National authorities use the PRSP as the
  instrument to lead development assistance
  coordination (budget support, investment projects
  through SWAps)
• -External partners support capacity building in
  line with the PRSP

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The Way Ahead (cont.)

• ME systems respond to country needs
• -Internal and external ME systems are
  streamlined and inform the countrys
  decision-making process
• -External partners align support around one
  country system