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PRSP critique

2005 review of the poverty reduction strategy approach: balancing accountabilities and scaling up results

An evaluation of the poverty reduction strategy approach

Authors: M. Allen; D.M. Leipziger
Publisher: International Monetary Fund , 2005

The PRS (poverty reduction strategy) approach has become widespread over the last five years. This paper presents a review of the PRS approach in the form of an extensive discussion of implementation experience up until 2005. The review is based on the views of a wide range of stakeholders.

Following a prologue of experiences in Albania and Zambia, the paper presents an overview of the development challenges in low-income countries. It then focuses on balancing accountabilities - how the PRS approach can support the strengthening of domestic accountability; the accountabilities of donors in terms of providing better aid; and various factors that help external requirements to reinforce rather than undermine domestic the paper discusses: the analytic foundations which can support the strengthening of strategies and their results orientation; and how the PRS process can support ambitious development plans by providing a framework for scaling up assistance and addressing absorptive constraints so that additional aid is used well.

Specific points the review highlight include:

  • Domestic accountability:
    • the PRS process has encouraged countries to prioritize their development goals, and set concrete targets and appropriate intermediate progress indicators
    • several countries have begun this process, but many PRSs would benefit from a more explicit link between goals and the policies needed to achieve them
    • the PRS process has opened space for stakeholders to engage in a national dialogue on economic policy and poverty reduction but participation has been broad rather than deep, and focused primarily on PRS formulation.

    External accountability:

    • governments receiving development assistance are also accountable to those who provide it
    • factors increasing the importance of external accountability include the perception of the PRS process as an externally imposed requirement, some aspects of aid arrangements and high dependence.

    Supporting a balance of accountabilities:

    • in countries where the PRS approach has been well implemented, an internal shift has taken place between the developing countries and their external partners
    • elsewhere, countries need to continue their PRS efforts through improved prioritisation, sequencing and monitoring.

    Scaling up results:

    • action is required from donors and countries alike to make the PRS the framework for scaling up country-level efforts to reach the MDGs
    • donors must align their assistance with the country's development priorities.

[adapted from author]