• Why are human resources important

Why are human resources important

Summary of findings from official review of PRSP processes. It discusses various emerging good practices from the early experience of countries and development partners, reviews priorities for knowledge and capacity building in low-income countries, and concludes with issues for discussion by Executive Directors on actions that the Bank and Fund can take to enhance the impact of the PRSP approach.

The report finds that:

• In the last two and a half years, there has been widespread acceptance of the PRSP approach
• PRSPs are leading to better informed decision-making and more effective use of public resources, and serving as a framework for better coordination of the support from development partners
• Complementing the greater poverty focus of public resources is a growing emphasis on the policies that will accelerate growth and thus make this reduction in poverty sustainable over the long haul.
• The international community, too, has a critical role to play by increasing aid, opening its markets to developing country exports, and phasing out trade-distorting subsidies
• the development of PRSPs is a major challenge for low-income countries, both in terms of analysis and organization. Besides managing a complex policy dialogue with development partners, low-income country governments have to put together an integrated medium-term economic and poverty reduction strategy, complete with short- and long-term goals and monitoring systems; these are a set of tasks that few industrial countries could systematically do well. And, in many countries, these tasks must be managed with limited technical and institutional capacity and in ways that reinforce—rather than undermine—existing national institutions, processes, and governance systems. Thus, there is a need to have realistic expectations about the PRSPs that are being developed.
• strategies alone are not sufficient—they must be followed up by actions. Countries must follow through on the policy commitments laid out in the PRSPs. Donors must provide the promised technical and financial support in a timely fashion and in a way that does not impose undue administrative costs on the recipient country. Civil society organizations must cooperate with governments and coordinate their actions to achieve the commonly shared poverty reduction objectives set out in the PRSPs
• The Bank and the Fund will play a catalytic role in launching PRSPs, but ultimately the success of countries’ poverty reduction strategies will depend on the action of countries themselves and the concerted aide of all their development partners.

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