Transcript PRSP Monitoring and Synthesis Project

PRSPs – Emerging Lessons &
Issues for Asia
Asia Programme Managers Meeting
Delhi, May 21st 2002
Origins of the PRSP Idea
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2
Mixed record on poverty reduction in 1990s
(Africa, Transition economies, post-1997 Asia)
Findings on aid effectiveness – projects,
policy conditionality, ownership
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International Development Targets/MDGs
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Multilateral funding for debt relief (HIPC II)
Core PRSP Principles
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3
Country-led/owned based on broad-based
participation
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Comprehensive – macro, structural, social
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Long term perspective
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Results-oriented
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Costed & prioritised
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Partnership-oriented
What’s new?
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4
‘Costed’ poverty reduction strategy linked to
macro & fiscal framework
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Outcome focused; making the links between
policy & results
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Opening-up the policy process to participation
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New incentives, new partnership possibilities
& new forms of aid delivery
Relevance in Asia?
5
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Vast majority of poor people still reside in Asia
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Pro-poor policy framework linked to resource
envelope has broad relevance
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Joining-up macro, structural & social policy a
challenge everywhere
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Donors role secondary to domestic constituencies
But context matters
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Important differences between Asia & other
regions and within Asia itself:
Poverty trends & history of anti-poverty
programmes
 Politics, planning and institutions
 Country size and federal states
 Debt, aid dependence & experience of IFIs
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6
Principles rather than Paper or Process
Asia Update
Country
Vietnam
Cambodia
Bangladesh
Pakistan
Nepal
Indonesia
Lao PDR
East Timor
I-PRSP (Due) PRSP (Due)
Apr-Jun 02
Jan-Mar 03
Oct-Dec 02
Jan-Mar 03
Apr-Jun 02
July-Sept 02
Apr-June 02
Jan-Mar 03
India
China
Myanmar?
Afghanistan?
7
* New PRGF arrangement
Oct-Dec 02
PRGF/PRSC
PRGF/PRSC
PRGF
PRGF*
PRGF
PRGF*
PRGF
PRGF*
‘Global’ Highlights
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PRSs beginning to provide focus for allocation
& use of domestic & external resources
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Policy priorities increasingly backed by analysis
of poverty & linked to outcomes
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8
Some opening of the ‘policy space’ to broader
participation by domestic constituencies
‘Proto’ linkages with other reform processes
(budgets/MTEFs, sector strategies)
New institutional & donor arrangements
Ongoing Challenges
9
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Links to other national planning processes
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Role of MoF vs. other central/line ministries &
devolved authorities
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Feasibility of targets, relevance of indicators,
appropriate monitoring strategies, risk analysis
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Sustaining participatory policy processes
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Donor coordination / alignment of instruments
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Countries under stress/poor performers
What does this mean for DFID?
10
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Active corporate/country level engagement in
all aspects of the PRS process
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Move towards greater programmatic/budget
support where PRS processes are strong
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Increasingly separating financing & influencing
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Longer term commitments to provision of aid
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Working more multilaterally
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New/different skills
Challenges
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Ownership vs. conditionality
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Short term results vs. long term perspective
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Central (federal) vs. provincial (state) level
working
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Balancing between:
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11
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Strengthening poverty impact of policy
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Allowing for flexibility viz. country specifics
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Meeting fiduciary/risk management concerns
Joining-up with other donors and within HMG