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PRSPs – Emerging Lessons & Issues for Asia

PRSPs – Emerging Lessons & Issues for Asia. Asia Programme Managers Meeting Delhi, May 21 st 2002. Origins of the PRSP Idea. Mixed record on poverty reduction in 1990s (Africa, Transition economies, post-1997 Asia) Findings on aid effectiveness – projects,

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PRSPs – Emerging Lessons & Issues for Asia

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  1. PRSPs – Emerging Lessons & Issues for Asia Asia Programme Managers Meeting Delhi, May 21st 2002

  2. 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)

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

  4. 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

  5. Relevance in Asia? • Vast majority of poor people still reside in Asia • Pro-poor policy framework linked to resource envelope has broad relevance • Joining-up macro, structural & social policy a challenge everywhere • Donors role secondary to domestic constituencies

  6. But context matters • 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 • Principles rather than Paper or Process

  7. Asia Update Country I-PRSP (Due) PRSP (Due) PRGF/PRSC Apr-Jun 02 Jan-Mar 03 Jan-Mar 03 Apr-Jun 02 Oct-Dec 02 Oct-Dec 02 July-Sept 02 Apr-June 02 Jan-Mar 03 PRGF/PRSC PRGF PRGF* PRGF PRGF* PRGF PRGF* Vietnam Cambodia Bangladesh Pakistan Nepal Indonesia Lao PDR East Timor India China Myanmar? Afghanistan? * New PRGF arrangement

  8. ‘Global’ Highlights • PRSs beginning to provide focus for allocation & use of domestic & external resources • Policy priorities increasingly backed by analysis of poverty & linked to outcomes • 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

  9. Ongoing Challenges • Links to other national planning processes • Role of MoF vs. other central/line ministries & devolved authorities • Feasibility of targets, relevance of indicators, appropriate monitoring strategies, risk analysis • Sustaining participatory policy processes • Donor coordination / alignment of instruments • Countries under stress/poor performers

  10. What does this mean for DFID? • Active corporate/country level engagement in all aspects of the PRS process • Move towards greater programmatic/budget support where PRS processes are strong • Increasingly separating financing & influencing • Longer term commitments to provision of aid • Working more multilaterally • New/different skills

  11. Challenges • Ownership vs. conditionality • Short term results vs. long term perspective • Central (federal) vs. provincial (state) level working • Balancing between: • Strengthening poverty impact of policy • Allowing for flexibility viz. country specifics • Meeting fiduciary/risk management concerns • Joining-up with other donors and within HMG

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