Poverty reduction needs more than just political will

A lot more than political will is needed to eradicate poverty in Africa, according to a recent report by an international development think-tank. The British-based Overseas Development Institute (ODI) asked some tough questions of how public money is managed and spent in trying to alleviate poverty in five African countries - Ghana, Malawi, Mozambique, Tanzania and Uganda. The aim of the research titled, 'How, When and Why does Poverty get Budget Priority' was to identify the factors influencing the importance attached to poverty reduction within the budget process, and the effectiveness with which policies are translated into funding and, ultimately, into results. Both Malawi and Mozambique have over recent years placed poverty reduction strategies at the top of the development agenda. But not before a few hard lessons in realistic goal setting and the need for forward planning, the report said. The Malawian government in 1995 introduced the Policy Framework for Poverty Reduction which aimed to raise the productivity of the poor. The government also introduced expanded safety nets for the poor and reallocated spending toward health care, primary education and rural infrastructure. Although a step in the right direction, the programme failed to identify the neediest among the poor, and overstretched its public resources by trying to provide for too many people, the study noted Experience, in this case, proved to be a good teacher as the government moved to adopt a more participatory approach. "Broader participation in Malawi has resulted in a more wide-ranging poverty strategy, adding good governance, improved income distribution and food security," the study said. Mozambique's attempt at implementing a poverty reduction strategy remained little more than a policy framework until after its 13-year civil war. After the 1999 elections, a new "broader" strategy was approved in the Government Programme 2000-04, which placed poverty reduction at the heart of the policy agenda. It included a more detailed list of policy goals with institutional responsibilities, activities and targets. Particular to the country, the programme included a stronger focus on a coherent emergency response network, in response to its vulnerability to natural disasters. The report noted: "Education and health networks have been improved, and emerging civil society organisations have increased their voice and sometimes influence (as on land law), though the culture of popular consultation has some way to go." But while the study applauded the increased institutional support for anti-poverty programmes through increased public spending, it pointed to the uphill battle to maintain strict fiscal discipline and a stable budget, without which "all the good intentions could result in benefiting the non-poor [those not in need of government assistance]". Additionally, and fundamental to its findings, the study reiterated the need for increased participation of civil society and a commitment to identifying who the poor really are. "Government must understand who the poor really are and how they move them into or out of poverty, and how the nature of poverty is changing," the study noted. The report also called for the strengthening of "information sharing networks" saying that transparency in the information flow between government and the poor had "shallow roots, and access could easily be removed (or likely) declined if government leadership gives it less emphasis". On a practical level, the report suggested that governments must make hard choices, if the battle against poverty was to be won. One of the ways to assure that the poor were benefiting from the disbursement of public money directed at them was to reduce the cost of free or subsidised services currently enjoyed by the mainly non-poor minority. Part of the problem was the lack of qualitative research. Thorough analysis, it was recommended, would reduce the temptation to solve the problem by assuming it away through ambitious growth targets. The common weakness, however, in the five countries under study was that each country lacked sufficient capacity to plan changes in strategic priorities. "It is fundamental that the plans are based on realistic resources and respected in budget release decisions. Domestic revenue forecast need to take a cautious view of growth prospects and in particular should not assume administrative improvements in revenue collection until there is some evidence that revenue targets have been reached," the report said. The study noted that improving the delivery of public expenditure required attention to major problems of low pay, weak incentives, and weak or non-existent performance management. The pay problem, it added, was especially acute in rural areas. However, various incentives are being tried to overcome the problem, including faster promotion, and in Mozambique, making rural service a condition for being accredited as a teacher or a doctor. But higher salaries would not improve services unless better performance was required in return, the report noted. The study pointed out that the problems of building capacity and managing performance are central, just as they are in developed countries where governments have also struggled to improve delivery. For the full report: www.odi.org.uk/publications/wp164.pdf