Diversifying PRSP The Vietnamese Model for Growth-Oriented Poverty Reduction September 1, 2002 Izumi...
-
Upload
nelson-noel-hunt -
Category
Documents
-
view
220 -
download
2
Transcript of Diversifying PRSP The Vietnamese Model for Growth-Oriented Poverty Reduction September 1, 2002 Izumi...
![Page 1: Diversifying PRSP The Vietnamese Model for Growth-Oriented Poverty Reduction September 1, 2002 Izumi Ohno National Graduate Institute for Policy Studies.](https://reader035.fdocuments.net/reader035/viewer/2022062715/56649d845503460f94a6b737/html5/thumbnails/1.jpg)
Diversifying PRSP
The Vietnamese Model for Growth-Oriented Poverty Reduction
September 1, 2002 Izumi Ohno
National Graduate Institute for Policy Studies
![Page 2: Diversifying PRSP The Vietnamese Model for Growth-Oriented Poverty Reduction September 1, 2002 Izumi Ohno National Graduate Institute for Policy Studies.](https://reader035.fdocuments.net/reader035/viewer/2022062715/56649d845503460f94a6b737/html5/thumbnails/2.jpg)
Background
• Ongoing global poverty reduction partnership
• Poverty Reduction Strategy Paper (PRSP) – Eligibility for Enhanced HIPC Initiative, ID
A/IMF financial support– Linkage with country assistance strategies– The means to achieve UN Millennium Devel
opment Goals (MDGs)
![Page 3: Diversifying PRSP The Vietnamese Model for Growth-Oriented Poverty Reduction September 1, 2002 Izumi Ohno National Graduate Institute for Policy Studies.](https://reader035.fdocuments.net/reader035/viewer/2022062715/56649d845503460f94a6b737/html5/thumbnails/3.jpg)
Japan and PRSP
• Agree on basic principles of PRSP (e.g., ownership, partnership); but
• Suggested areas for its enhancement:
– Incorporating country diversity in the current approach
– Providing strategic alternatives and options for institutional arrangements, etc.
![Page 4: Diversifying PRSP The Vietnamese Model for Growth-Oriented Poverty Reduction September 1, 2002 Izumi Ohno National Graduate Institute for Policy Studies.](https://reader035.fdocuments.net/reader035/viewer/2022062715/56649d845503460f94a6b737/html5/thumbnails/4.jpg)
Agenda
1. PRSP Overview2. Country Types and Appropriate
Responses3. Vietnam’s PRSP Experience:
– Strong ownership: built on the existing development vision
– Growth orientation: Asian Dynamism as key factor
![Page 5: Diversifying PRSP The Vietnamese Model for Growth-Oriented Poverty Reduction September 1, 2002 Izumi Ohno National Graduate Institute for Policy Studies.](https://reader035.fdocuments.net/reader035/viewer/2022062715/56649d845503460f94a6b737/html5/thumbnails/5.jpg)
1. PRSP Country Status
• 61 countries engaged in PRSP process [as of Aug. 2002] – 18 countries completed Full-PRSPs
o/w: 12 Africa, 4 LACo/w: 15 linked to “Enhanced HIPC Initiative”
• IDA/IMF comprehensive review– Joint Development Committee (April 2002)
![Page 6: Diversifying PRSP The Vietnamese Model for Growth-Oriented Poverty Reduction September 1, 2002 Izumi Ohno National Graduate Institute for Policy Studies.](https://reader035.fdocuments.net/reader035/viewer/2022062715/56649d845503460f94a6b737/html5/thumbnails/6.jpg)
PRPS Countries by Progress
4
1
1
1
11
1
7
1
3
17
2
3
2
7
No. of countries
Full- PRSP
Interim- PRSP
before Interim- PRSP
Africa (35)
East Asia (6)
South Asia (4)
Europe &Central Asia (10)
Middle East & North Africa (2)
Latin America &Caribbean (4)
![Page 7: Diversifying PRSP The Vietnamese Model for Growth-Oriented Poverty Reduction September 1, 2002 Izumi Ohno National Graduate Institute for Policy Studies.](https://reader035.fdocuments.net/reader035/viewer/2022062715/56649d845503460f94a6b737/html5/thumbnails/7.jpg)
PRSP Countries by HIPC Status
1
5
3
17
1
7 2
1
1
10
4
4
1
4
No. of Countries
HIPC Completion Points reached
HIPC Decision Points reached
HIPC Decision Points not yet reached
HIPC Sustainable Cases
Non-HIPC
Africa (35)
East Asia (6)
South Asia (4)
Europe & Central Asia (10)
Middle East &North Africa (2)
Latin America &Caribbean (4)
![Page 8: Diversifying PRSP The Vietnamese Model for Growth-Oriented Poverty Reduction September 1, 2002 Izumi Ohno National Graduate Institute for Policy Studies.](https://reader035.fdocuments.net/reader035/viewer/2022062715/56649d845503460f94a6b737/html5/thumbnails/8.jpg)
PRSP Comprehensive Review:by IDA and IMF
“The PRSP approach requires flexibility so that both the process and the content of poverty reduction strategies can vary across countries in light of national circumstances.”
[IDA/IMF March 15, 2002, p.7]
![Page 9: Diversifying PRSP The Vietnamese Model for Growth-Oriented Poverty Reduction September 1, 2002 Izumi Ohno National Graduate Institute for Policy Studies.](https://reader035.fdocuments.net/reader035/viewer/2022062715/56649d845503460f94a6b737/html5/thumbnails/9.jpg)
2. Country Types and Appropriate Responses
• 3 key criteria for localizing PRSP1. Relationship with donors
– Linkage between PRSP and debt relief – Aid dependency– Donor composition, etc.
2. Presence or absence of a national development strategy and its quality
3. Causes of poverty
![Page 10: Diversifying PRSP The Vietnamese Model for Growth-Oriented Poverty Reduction September 1, 2002 Izumi Ohno National Graduate Institute for Policy Studies.](https://reader035.fdocuments.net/reader035/viewer/2022062715/56649d845503460f94a6b737/html5/thumbnails/10.jpg)
Burkina Faso
Ghana
Mauritania
Mozambique
Uganda BoliviaHonduras
Mongolia
Nepal
Kenya
Tanzania
Zambia
Nicaragua
Bangladesh
Cambodia
Indonesia
Laos
Pakistan
Sri Lanka
Vietnam
0
5
10
15
20
25
30
0 20 40 60 80 100 120 140 ODA/capita
US$
ODA/GDP%
Aid Dependency(US$ per capita and % of GDP, 1998)
![Page 11: Diversifying PRSP The Vietnamese Model for Growth-Oriented Poverty Reduction September 1, 2002 Izumi Ohno National Graduate Institute for Policy Studies.](https://reader035.fdocuments.net/reader035/viewer/2022062715/56649d845503460f94a6b737/html5/thumbnails/11.jpg)
Donor Composition
Vietnam: Major Donors1998-2000 Average
IDA13.5%
ADB12.0%
Germany3.6%
Japan46.3%
Denmark2.8%
France4.6%
Others17.2%
![Page 12: Diversifying PRSP The Vietnamese Model for Growth-Oriented Poverty Reduction September 1, 2002 Izumi Ohno National Graduate Institute for Policy Studies.](https://reader035.fdocuments.net/reader035/viewer/2022062715/56649d845503460f94a6b737/html5/thumbnails/12.jpg)
Donor Composition
Uganda: Major Donors1998-2000 Average
UK20.3%
IDA14.1%
Denmark9.2%EU
7.4%USA6.9%
Netherland5.0%
Others38.0%
Tanzania: Major Donors1998-2000 Average
UK13.2%
Japan12.4%
Denmark7.2%
Germany7.0%
Others41.0%
IDA12.2%
Netherland8.0%
![Page 13: Diversifying PRSP The Vietnamese Model for Growth-Oriented Poverty Reduction September 1, 2002 Izumi Ohno National Graduate Institute for Policy Studies.](https://reader035.fdocuments.net/reader035/viewer/2022062715/56649d845503460f94a6b737/html5/thumbnails/13.jpg)
ODA Composition: Grants vs. Loans
0% 20% 40% 60% 80% 100%
Tanzania
Uganda
Bolivia
Vietnam
Grants
Loans
![Page 14: Diversifying PRSP The Vietnamese Model for Growth-Oriented Poverty Reduction September 1, 2002 Izumi Ohno National Graduate Institute for Policy Studies.](https://reader035.fdocuments.net/reader035/viewer/2022062715/56649d845503460f94a6b737/html5/thumbnails/14.jpg)
National Development Strategy
• How is PRSP—imported from without—treated domestically?
• 2 prototypes:
– PRSP as a supplementary document
– PRSP as a primary document
![Page 15: Diversifying PRSP The Vietnamese Model for Growth-Oriented Poverty Reduction September 1, 2002 Izumi Ohno National Graduate Institute for Policy Studies.](https://reader035.fdocuments.net/reader035/viewer/2022062715/56649d845503460f94a6b737/html5/thumbnails/15.jpg)
PRSP as a Supplementary Document
• Existing national development plans guide budget, sector plans and PRSP.
• PRSP supplement, with special attention to poverty reduction – Cross-cutting perspective
– Participatory process, etc.
• Example: Vietnam
![Page 16: Diversifying PRSP The Vietnamese Model for Growth-Oriented Poverty Reduction September 1, 2002 Izumi Ohno National Graduate Institute for Policy Studies.](https://reader035.fdocuments.net/reader035/viewer/2022062715/56649d845503460f94a6b737/html5/thumbnails/16.jpg)
PRSP as a Supplementary Document
Existing dev. plan
PRSP Sector plans
Budget
govern
supplement
![Page 17: Diversifying PRSP The Vietnamese Model for Growth-Oriented Poverty Reduction September 1, 2002 Izumi Ohno National Graduate Institute for Policy Studies.](https://reader035.fdocuments.net/reader035/viewer/2022062715/56649d845503460f94a6b737/html5/thumbnails/17.jpg)
PRSP as a Primary Document
• PRSP co-exists with the national development plan
• Newly introduced PRSP exerts a stronger influence over budget and sector plans.
• Examples: Tanzania, Uganda
![Page 18: Diversifying PRSP The Vietnamese Model for Growth-Oriented Poverty Reduction September 1, 2002 Izumi Ohno National Graduate Institute for Policy Studies.](https://reader035.fdocuments.net/reader035/viewer/2022062715/56649d845503460f94a6b737/html5/thumbnails/18.jpg)
PRSP as a Primary Document
Existing dev. plan
PRSP
Sector plans,budget, MTEF,
aid procedures
symbolic
govern
![Page 19: Diversifying PRSP The Vietnamese Model for Growth-Oriented Poverty Reduction September 1, 2002 Izumi Ohno National Graduate Institute for Policy Studies.](https://reader035.fdocuments.net/reader035/viewer/2022062715/56649d845503460f94a6b737/html5/thumbnails/19.jpg)
Institutional Options based on the Existing System
• PRSP-supplementary: donors should respect and support the existing policy framework (rather than replacing it with PRSP).
• PRSP-primary: donors can utilize PRSP & related systems and support local capacity building around PRSP.
![Page 20: Diversifying PRSP The Vietnamese Model for Growth-Oriented Poverty Reduction September 1, 2002 Izumi Ohno National Graduate Institute for Policy Studies.](https://reader035.fdocuments.net/reader035/viewer/2022062715/56649d845503460f94a6b737/html5/thumbnails/20.jpg)
Causes of Poverty
• Need for correct matching between diagnosis and prescription in each country – How poverty is created?
– How can growth reduce poverty?
[Ishikawa 2002]
![Page 21: Diversifying PRSP The Vietnamese Model for Growth-Oriented Poverty Reduction September 1, 2002 Izumi Ohno National Graduate Institute for Policy Studies.](https://reader035.fdocuments.net/reader035/viewer/2022062715/56649d845503460f94a6b737/html5/thumbnails/21.jpg)
Causes of Poverty (contd.)
• Case 1: a poor country equipped with policies & programs to promote social equity and social service delivery system– A good growth strategy is needed to
improve the purchasing power of the general population.
– Example: Vietnam
![Page 22: Diversifying PRSP The Vietnamese Model for Growth-Oriented Poverty Reduction September 1, 2002 Izumi Ohno National Graduate Institute for Policy Studies.](https://reader035.fdocuments.net/reader035/viewer/2022062715/56649d845503460f94a6b737/html5/thumbnails/22.jpg)
Causes of Poverty (contd.)
• Case 2: a poor country constrained with uneven opportunities due to social discrimination (e.g., gender, racial and ethnic discrimination)– Formulation and implementation of
efficient & effective pro-poor targeting measures are needed—in addition to a growth strategy.
![Page 23: Diversifying PRSP The Vietnamese Model for Growth-Oriented Poverty Reduction September 1, 2002 Izumi Ohno National Graduate Institute for Policy Studies.](https://reader035.fdocuments.net/reader035/viewer/2022062715/56649d845503460f94a6b737/html5/thumbnails/23.jpg)
Infant Mortality Rate (2000)
0
10
20
30
40
50
60
70
80
90
100
Lao
PD
R
Myan
mar
Cam
bo
dia
Ind
on
esia
Ch
ina
Ph
ilip
pin
es
Th
ail
an
d
Vie
tnam
Ko
rea
Mala
ysia
Taiw
an
Jap
an
Ho
ng
Ko
ng
Sin
gap
ore
Sources: World Bank, World Development Indicators 2002; For Taiwan, ADB, Key Indicators 2001 .
(per 1,000 live births)
Average of lowincome countriesAverage of middle
income countries
![Page 24: Diversifying PRSP The Vietnamese Model for Growth-Oriented Poverty Reduction September 1, 2002 Izumi Ohno National Graduate Institute for Policy Studies.](https://reader035.fdocuments.net/reader035/viewer/2022062715/56649d845503460f94a6b737/html5/thumbnails/24.jpg)
Female Adult Illiteracy Rate (2000)
0
10
20
30
40
50
60
70
80
Lao
PD
R
Cam
bo
dia
Ch
ina
Ind
on
esia
Mal
aysi
a
Mya
nm
ar
Tai
wan
Sin
gap
ore
Ho
ng
Ko
ng
Vie
tnam
Th
aila
nd
Ph
ilip
pin
es
Ko
rea
%
Sources: World Bank, World Development Indicators 2002; For Taiw an, ADB, Key Indicators 2001 .
Average of lowincome countries
Average of middleincome countries
![Page 25: Diversifying PRSP The Vietnamese Model for Growth-Oriented Poverty Reduction September 1, 2002 Izumi Ohno National Graduate Institute for Policy Studies.](https://reader035.fdocuments.net/reader035/viewer/2022062715/56649d845503460f94a6b737/html5/thumbnails/25.jpg)
Country Diversity and Strategic Alternatives
• Reflect the stages of development (economic, social, institutional etc.), and other country-specific opportunities & constraints.
• Identify an appropriate mix for each country: “pro-poor targeted” vs. “broad-based growth” expenditures[Ishikawa 2002]
![Page 26: Diversifying PRSP The Vietnamese Model for Growth-Oriented Poverty Reduction September 1, 2002 Izumi Ohno National Graduate Institute for Policy Studies.](https://reader035.fdocuments.net/reader035/viewer/2022062715/56649d845503460f94a6b737/html5/thumbnails/26.jpg)
3. Vietnam’s PRSP Experience
• Recognized internationally as “good practice”: strong country ownership
• PRSP renamed to “Comprehensive Poverty Reduction & Growth (CPRGS) Strategy”
• CPRGS: as a document subordinate to the core documents which embrace a growth-oriented development vision.
![Page 27: Diversifying PRSP The Vietnamese Model for Growth-Oriented Poverty Reduction September 1, 2002 Izumi Ohno National Graduate Institute for Policy Studies.](https://reader035.fdocuments.net/reader035/viewer/2022062715/56649d845503460f94a6b737/html5/thumbnails/27.jpg)
Vietnam’s PRSP Experience
• Different perspective from the early PRSPs– First East Asian country to complete Full
-PRSP (May 2002)
– PRSP not linked to enhanced debt relief program
![Page 28: Diversifying PRSP The Vietnamese Model for Growth-Oriented Poverty Reduction September 1, 2002 Izumi Ohno National Graduate Institute for Policy Studies.](https://reader035.fdocuments.net/reader035/viewer/2022062715/56649d845503460f94a6b737/html5/thumbnails/28.jpg)
About Vietnam
• Population: 78.5 million • Located at the heart of East Asia• Years of wars and central planning• Income per capita: $390 per year• Life expectancy at births: 69 years• Female adult illiteracy rate: 9%
[2000 data, WB]
![Page 29: Diversifying PRSP The Vietnamese Model for Growth-Oriented Poverty Reduction September 1, 2002 Izumi Ohno National Graduate Institute for Policy Studies.](https://reader035.fdocuments.net/reader035/viewer/2022062715/56649d845503460f94a6b737/html5/thumbnails/29.jpg)
About Vietnam (contd.)
• Transition to a market economy “Doi Moi” policy (1986 ~ ): domestic liberalization
• International integration (early 1990s ~ ): trade, FDI, aid flows
• Achieving high growth rates (7 ~ 8% per year) and halving the ratio of extreme poverty in the 1990s
![Page 30: Diversifying PRSP The Vietnamese Model for Growth-Oriented Poverty Reduction September 1, 2002 Izumi Ohno National Graduate Institute for Policy Studies.](https://reader035.fdocuments.net/reader035/viewer/2022062715/56649d845503460f94a6b737/html5/thumbnails/30.jpg)
0.0
2.0
4.0
6.0
8.0
10.0
12.0%
Real GDP Growth Poverty
Progress in the Last Decade
Source: Government Statistics Office (GSO), Government of Vietnam.
58
25
37
15
0
10
20
30
40
50
60
70
Below Total PovertyLine
Below Food PovertyLine
19931998
%
Source: World Bank, “World Bank and Vietnam,” [http://www.worldbank.or.jp/06group/RC_flame.htm].
![Page 31: Diversifying PRSP The Vietnamese Model for Growth-Oriented Poverty Reduction September 1, 2002 Izumi Ohno National Graduate Institute for Policy Studies.](https://reader035.fdocuments.net/reader035/viewer/2022062715/56649d845503460f94a6b737/html5/thumbnails/31.jpg)
Vietnam is a Large FDI Receiver
% of GDP, average 1991-99
5.4
0.8
1
1.1
1.2
1.6
3.2
3.5
3.2
0.9
0 1 2 3 4 5 6
Vietnam (1991-00)
Korea, Rep.
Brazil
China
Mexico
Argentina
Malaysia
Chile
High Income countries
Low & middle incomecountries
(%)
Source: Government of Vietnam and World Bank, SIMA database (cited from Vietnam 2010
Entering the 21st Centruy , Joint Report of World Bank, ADB and UNDP, November 2000.
![Page 32: Diversifying PRSP The Vietnamese Model for Growth-Oriented Poverty Reduction September 1, 2002 Izumi Ohno National Graduate Institute for Policy Studies.](https://reader035.fdocuments.net/reader035/viewer/2022062715/56649d845503460f94a6b737/html5/thumbnails/32.jpg)
Asian Dynamism: Key Factor
• Development driven by trade & investment
• East Asian growth as collective phenomenon: “Flying Geese Pattern”
• Development as catching up (vs. development as poverty reduction)
• Participation in regional/global production network through int’l division of labor
![Page 33: Diversifying PRSP The Vietnamese Model for Growth-Oriented Poverty Reduction September 1, 2002 Izumi Ohno National Graduate Institute for Policy Studies.](https://reader035.fdocuments.net/reader035/viewer/2022062715/56649d845503460f94a6b737/html5/thumbnails/33.jpg)
Share in World Export
0
2
4
6
8
10
12
14
16
18
60s 70s 80s 90s
(%)
Per Capita GNP Growth
0
1
2
3
4
5
6
7
60s 70s 80s 90s
(%)
East Asia
Sub Saharan Africa
Source: Ministry of Economy, Trade and Industry, White Paper on International Trade 2001, p.78.
East Asia
Sub Saharan Africa
![Page 34: Diversifying PRSP The Vietnamese Model for Growth-Oriented Poverty Reduction September 1, 2002 Izumi Ohno National Graduate Institute for Policy Studies.](https://reader035.fdocuments.net/reader035/viewer/2022062715/56649d845503460f94a6b737/html5/thumbnails/34.jpg)
East Asia Reduced PovertyDespite Currency Crisis
Population in Extreme Poverty (%)
0102030405060
East Asia LatinAmerica
South Asia Sub-SaharanAfrica
1990
1999
![Page 35: Diversifying PRSP The Vietnamese Model for Growth-Oriented Poverty Reduction September 1, 2002 Izumi Ohno National Graduate Institute for Policy Studies.](https://reader035.fdocuments.net/reader035/viewer/2022062715/56649d845503460f94a6b737/html5/thumbnails/35.jpg)
Asian Dynamism: Key Factor
• Vietnam with typical East Asian aspiration• National goal: Industrialization &
Modernization by 2020 (10-Year Strategy & 5-Year Plan)
• Very strong interest in narrowing intra-regional gaps (vs. original ASEAN)
![Page 36: Diversifying PRSP The Vietnamese Model for Growth-Oriented Poverty Reduction September 1, 2002 Izumi Ohno National Graduate Institute for Policy Studies.](https://reader035.fdocuments.net/reader035/viewer/2022062715/56649d845503460f94a6b737/html5/thumbnails/36.jpg)
Asian Dynamism: Key Factor
• Also interested in infrastructure, HRD, trade, FDI attraction
• Narrow “poverty reduction” approach, not enough
![Page 37: Diversifying PRSP The Vietnamese Model for Growth-Oriented Poverty Reduction September 1, 2002 Izumi Ohno National Graduate Institute for Policy Studies.](https://reader035.fdocuments.net/reader035/viewer/2022062715/56649d845503460f94a6b737/html5/thumbnails/37.jpg)
PRSP Approach
Poverty ReductionGoal:MDGs
CDF/PRSP
Means:
Pro-Poor Policies Growth Policies
![Page 38: Diversifying PRSP The Vietnamese Model for Growth-Oriented Poverty Reduction September 1, 2002 Izumi Ohno National Graduate Institute for Policy Studies.](https://reader035.fdocuments.net/reader035/viewer/2022062715/56649d845503460f94a6b737/html5/thumbnails/38.jpg)
East Asian Aspiration
Equitable GrowthGoal:
< Vietnam >Industrialization & Modernization
5-Year Plan & 10-Year Strategy
Means:
Growth Policies Social Policies
![Page 39: Diversifying PRSP The Vietnamese Model for Growth-Oriented Poverty Reduction September 1, 2002 Izumi Ohno National Graduate Institute for Policy Studies.](https://reader035.fdocuments.net/reader035/viewer/2022062715/56649d845503460f94a6b737/html5/thumbnails/39.jpg)
Lastly…
• Diversifying PRSP, more flexibility• Specific criteria for localizing PRSP• Options for institutional
arrangements• Strategic alternatives: different
causes, different responses
![Page 40: Diversifying PRSP The Vietnamese Model for Growth-Oriented Poverty Reduction September 1, 2002 Izumi Ohno National Graduate Institute for Policy Studies.](https://reader035.fdocuments.net/reader035/viewer/2022062715/56649d845503460f94a6b737/html5/thumbnails/40.jpg)
Japan’s Cooperation
• Country ownership and partnership• Supporting balanced growth with equity
– Creating the enabling environment for trade & investment, through infrastructure, HRD, policy advice, etc.
– Coping with risks & emerging social problems
• Through an appropriate mix of grants, loans, and technical cooperation
![Page 41: Diversifying PRSP The Vietnamese Model for Growth-Oriented Poverty Reduction September 1, 2002 Izumi Ohno National Graduate Institute for Policy Studies.](https://reader035.fdocuments.net/reader035/viewer/2022062715/56649d845503460f94a6b737/html5/thumbnails/41.jpg)
The END
For more details, please see our information module at:http//www.grips.ac.jp/forum-e/
by GRIPS Development Forum