Poverty reduction still a challenge

There are still a number of challenges that must be addressed before the Poverty Reduction Strategies Papers (PRSP) can be considered a success, according to delegates who attended a recent poverty reduction conference.

The conference, hosted jointly by the IMF and the World Bank in Washington from 14-17 January, brought together about 200 people from civil society, academia, donor agencies, international organisations and various governments.

The PRSP provides the basis for assistance from the Bank and the IMF, as well as debt relief under the Highly Indebted Poor Countries (HIPC) initiative. A country needs to write a PRSP every three years to qualify for assistance. However, changes can be made to the content of a PRSP using an annual progress report.

According to the World Bank's PRSP website, there are certain core principles underlying the development and implementation of poverty reduction strategies. These include that the strategies be country-driven and that they involved broad-based participation by civil society and the private sector in all operational steps. It should be results-oriented, and focused on outcomes that benefit the poor.

The Banks adds that any strategy has to take into account feasibility in both fiscal and institutional terms, and be based on a long-term perspective for poverty reduction.

An IMF statement released at the end of the conference said participants agreed that governments in poor countries would need more resources and technical assistance to craft and implement poverty reduction strategies.

"While assistance from developed donor countries and international organisations is important, equally vital is information and experience gleaned from other developing countries further along in their fight against poverty," it said.

In his address to delegates, IMF managing director Horst Kohler said the "success in poverty must be based on the efforts of poor countries themselves".

He added that the "process could not be understood as a one-way street.

"The international community, too, had a critical role to play by opening their markets to developing country exports, by reducing subsidies, by providing more adequate levels of concessional assistance for countries implementing strong policies and by aligning their development assistance with national strategies and priorities," Kohler said.

More information on the PRSP at
www.worldbank.org/poverty/strategies/index.htm