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]



