• PRSP critique

PRSP critique

This paper addresses the perception that poverty reduction strategy (PRS) processes in Latin America and the Caribbean have not grappled effectively with politics, and have not engaged successfully with political actors and institutions. The authors draw upon evidence from documents and interviews on how this situation has arisen and how it might be confronted. It is based on experience in three Latin American highly indebted poor countries (HIPCs): Bolivia, Honduras and Nicaragua.

The paper's overall argument is that the PRS approach has been compromised by the fact that a single instrument – preparation of a comprehensive plan document, with broad consultation – has been made to serve different purposes. In reality, these need to be met in different ways. As a consequence, it has served none particularly well, although some better than others. Its key failing, according to the authors, has been a lack of political will to buy-in to poverty reduction as an objective.

A coordinated multi-pronged approach is recommended in order to facilitate a more satisfactory relationship between political systems, donor actions and PRSs. The authors also recommend:

• primarily, agencies should, individually and collectively, get into the habit of thinking about carrying forward the PRS approach in a country, rather than carrying forward the PRS itself
• assisting the emergence of country policy ownership, by engaging on political terrain on the basis of a solid understanding of long-term processes of change
• accepting a new flexibility of approach in pursuing systems alignment and aid harmonisation
• using financing agreements, such as those for budget support, to focus selectively on short-term policy actions that are both useful and likely to be taken, given known political commitments.

[adapted from author]

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