Environment & national PRSs - directions and dilemmas

1. Environment & national PRSs -directions and dilemmas EPD Seminar Series May 2002

2. Organisation • Overview of the PRS process • ‘Mainstreaming’ in a PRS context • Objectives of DFID support • Options for engaging on environmental issues • Group work

3. Origins of the PRSP Idea • Mixed record on poverty reduction in 1990s (Africa, Transition economies, post-1997 Asia) • Findings on aid effectiveness – projects, policy conditionality, ownership • International Development Targets/MDGs • Multilateral funding for debt relief (HIPC II)

4. Core PRSP Principles • Country-led/owned based on broad-based participation • Comprehensive – macro, structural, social, environmental • Long term perspective • Results-oriented • Costed & prioritised • Partnership-oriented

5. PRS Schedule & Key Elements Preparation Status Report 1st Annual Progress Report 2nd Annual Progress Report etc.. IMPLEMENTATION PREPARATION I-PRSP PRSP (I) PRSP (II) 9-24 months 2-5 years HIPC(II) Completion Point HIPC(II) Decision Point

6. PRS Schedule & Key Elements Preparation Status Report 1st Annual Progress Report 2nd Annual Progress Report etc…. I-PRSP PRSP (II) PRSP (I) PRSP elements: • Poverty analysis • Goals/targets • Prioritised policy actions • Med-term budget fw • Financing plan • External assistance • Participatory process • Monitoring and evaluation 3 years 9-24 months Comprehensive diagnosis Selective actions

7. Links with other instruments PRGF performance criteria/benchmarks (3 years) IMF PRGF (replaces ESAF) World Bank PRSC/other donor DBS Performance indicators/PAFs Goals & targets (5-10 years) I-PRSP PRSP (I) PRSP (II) HIPC(II) Completion Point HIPC(II) Decision Point HIPC Triggers

8. Links with other national processes Sector/cross-cutting strategies & priorities PRSP elements: • Prioritised policy actions • Med-term budget fw I-PRSP PRSP (I) PRSP (II) MTEF Resource constraints Inter/intra-sectoral priorities Service delivery Monitoring & Evaluation

9. What’s new? • ‘Costed’ poverty reduction strategy linked to macro & fiscal framework • Outcome focused; making the links between policy & results • Opening-up the policy process to participation • New incentives, new partnership possibilities & new forms of aid delivery

10. Emerging Experience • Upgrading’ of poverty policy – MoFs engaged (Malawi) • Achieved at some cost to sentiments of national ownership but IFIs getting better at stepping back (Mali) • ‘Quality’ of PRS process & document heavily influenced by density of previous strategy & reform effort(s) • Synergy with MTEFs especially important but there is value-added in having PRSP as well (Rwanda, Benin) • Sometimes catalyst for changing donor behaviour (Bolivia), sometimes not

11. Emerging Experience • Participatory processes generally limited to consultation, depth of understanding limited outside core PRSP group • Ambitious targets, weak prioritisation & costing of policy actions • Anti-poverty content variable, sectoral focus, weak integration of cross-cutting themes/priorities • Monitoring & evaluation still the poor relative, although this is changing (Uganda, Rwanda, Tanzania, Ethiopia, Bolivia)

12. Mainstreaming in a PRS context • Working through national systems and processes • Poverty analysis (Nigeria workshop) • Engaging civil society (Kenya) • Influencing PRSP and other policy (Uganda NEMA) • Monitoring and evaluation (Vietnam VDTs) • Building on existing reform processes/efforts • Uganda - Plan for Modernisation of Agriculture • Rwanda – MTEF and ubudehe • Bolivia - decentralisation

13. Mainstreaming in a PRS context • Working with & through other donors • Joint donor financing mechanisms in much of Africa • Bolivia - bilateral ‘JSA’ • Poverty Task Force in Vietnam • Engaging with a broad range of stakeholders • Importance of PPAs (Rwanda, Uganda) • Capacity building of organised civil society (Kenya) • Working with the private sector (esp in transition economies) • Sectoral and local government (Bolivia)

14. Objectives of DFID support • Support for ‘strong’ PRSs • Poverty diagnosis, prioritisation…links with other reform processes • Coordination, reducing TCs, harmonisation

15. Identifying ‘entry points’ • Poverty analysis - input to the analysis to ensure comprehensive? • PSIA - feed into ex ante analysis of impacts of policies? • Priority areas - help with analysis of sustainability of the selected priority actions? • Organised civil society - support those working in areas related to broad environment agenda? • Engaging with line ministries - when key ministries are drafting their sectoral strategies, can begin dialogue over sustainability of key policy areas? • Working with other donors - look to fund interventions jointly?