Poverty Reduction Strategies: A tool for implementing the BPOA Linda Van Gelder The World Bank

Poverty Reduction Strategies Nature and Locus of poverty Determinants Selecting Indicators and targets Public Actions Monitoring outcomes Civil Society External Partner Support

Core Principles –County-owned –Results-oriented –Comprehensive and LT in perspective –Participatory –Partnership-oriented

How to Build a PRSP ? Poverty Analysis Sector Diagnostics PRSP CAS JSA w/ IMF Policies and programs Link to the budget ESW: Poverty assessment Public Exp. Reviews, etc. Projects, including PRSCs (budget support) Advisory and Analytical Work COUNTRY COUNTRY WBG WBG DONORSDONORS Consultation & Analysis Donors Programs Consultations

A framework for accelerating progress towards the MDGs Poverty Reduction Other MDGS Better Policies and Institutions More Aid, Market Access Economic Growth Service Delivery Infrastructure

Implications for Country Policies Public sector management –Domestic resource mobilization –Spending priorities –Governance & decentralization Investment climate Capacity building

Implications for Country Strategies Use medium-term national goals –Improve measurement and monitoring Integrate infrastructure and service delivery in spending priorities Balance fiscal constraints with appropriate levels and types of aid

The full PRSP is expected to be revised every 3 to 5 years based on the results of ongoing monitoring and evaluation. Implementation Prepare PRSP Monitoring Evaluation Country Government Participation from society members. Input from WB, UN Agencies, IMF, other donors Policies Budget Indicators Priorities

Where are PRSPs?

Achievements Country ownership Centrality of poverty reduction Openness and transparency Donor support of PRSP principles

Inherent Tensions Participation v. Prioritization Comprehensive v. Selective/Capacity Intl Expectations v. Country Ownership

Challenges Institutionalize participation Prioritize based on analysis Improve monitoring systems Strengthen public expenditure management systems Align (and increasing) assistance

Good Practice: Participatory Processes Countries Consult domestic stakeholders Establish rules View as a process Make accessible Partners Provide feedback Worry about sustainability Help build capacity

Good Practice: Priority Public Actions Countries Develop scenarios Include policies to reduce risks Consider linkages Be specific Build on early gains Partners Support analytical work

Good Practice: Integrating PRSPs into Decision Making Countries Involve MOF, link to the budget Involve line ministries, build on existing plans Clarify institutional arrangements Align with existing cycles Partners Respect and align assistance and requests for reporting

Partners Align business plans Be transparent Reduce admin. burdens Provide predictable aid Good Practice: Donor Alignment/Harmonization Countries Lead coordination Discuss drafts Highlight obstacles Disclose agreements

Thank you