Poverty Reduction Strategy Papers (PRSPs)

Overview and Next Steps

Expert Group Meeting on MDGs and PRSPs

Egypt, December 2004

Presentation outline

1. PRSP Fundamentals

2. Evaluating and Assessing the PRSP Process

3. The Way Ahead

1. PRSP Fundamentals

The WB and the IMF launch the HIPC Initiative

Sept. 1996

The WB introduces the CDF, piloted in

13 countriesJan. 1999

The WB and the IMF enhance the HIPC initiative to strengthen focus

on poverty reduction

Sept. 1999The WB and the IMF introduce the

PRSPSept. 1999

Some milestones… OECD/DAC Shaping the 21st

CenturyIDGs

May 1996

UN Millennium Summit adopts

MDGsSept. 2000

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

The mechanics of the PRSP

I-PRSP Full PRSPAnnual

Progress Reports

Formulation Implementation

1 year 3 years

WB and IMF Joint Staff Assessments

Review

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

As of December 2004 56 countries are participating in the PRSP process

…beyond the 42 HIPC eligible countries!

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)

2. Evaluating and Assessing the PRSP Process

2004 OED independent evaluation of the World Bank’s 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)

Main Findings

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

Long-term vision

OED WB/IMF WB/CDF 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

Main Findings (cont.)

WB/IMF conditionality

Limited stakeholders involvement in implementation

No mechanism to adapt PRSPs to differing country conditions

Country ownership

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

OED WB/IMF WB-CDF

Main Findings (cont.)

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

Country-led partnership

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

OED WB/IMF WB-CDF

*SWAps, multi-partner budget support, joint analytical work

Main Findings (cont.)

M&E systems at an early stage

Information not generally linked to decision-making

Focus on results

M&E systems relying on poor data and indicators

Limited institutional arrangements for monitoring

Insufficient alignment of external and internal M&E

External partners often supporting disparate initiatives for M&E

Excessive number of indicators

Limited role of Parliaments in monitoring and reviewing progress

OED WB/IMF WB-CDF

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

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

The Way Ahead (cont.)

M&E systems respond to country needs

-Internal and external M&E systems are streamlined and inform the country’s decision-making process

-External partners align support around one country system