Poverty Reduction Strategies:

A tool for implementing the BPOA

Linda Van Gelder

The World Bank

Poverty Reduction Strategies

Nature andLocus ofpoverty

DeterminantsSelectingIndicators

and targetsPublic Actions Monitoring

outcomes

Civil Society

ExternalPartnerSupport

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

perspective– Participatory– Partnership-oriented

How to Build a PRSP ?

Poverty Analysis

Sector Diagnostics

PRSP

CASJSAw/ IMF

Policies and programs

Link to the budget

ESW:Poverty assessmentPublic Exp. Reviews, etc.

Projects, including PRSCs (budget support)Advisory and Analytical Work

 

COUNTRY

  WBG

DONORS

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

Participatio

n from

society members.

Input from W

B, 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

Int’l 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

MakingCountries• 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

http://www.worldbank.org/poverty/strategies/