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PRSPs – Emerging Lessons & Issues for Asia. Asia Programme Managers Meeting Delhi, May 21 st 2002. Origins of the PRSP Idea. Mixed record on poverty reduction in 1990s (Africa, Transition economies, post-1997 Asia) Findings on aid effectiveness – projects,

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prsps emerging lessons issues for asia

PRSPs – Emerging Lessons & Issues for Asia

Asia Programme Managers Meeting

Delhi, May 21st 2002

slide2

Origins of the PRSP Idea

  • Mixed record on poverty reduction in 1990s

(Africa, Transition economies, post-1997 Asia)

  • Findings on aid effectiveness – projects,

policy conditionality, ownership

  • International Development Targets/MDGs
  • Multilateral funding for debt relief (HIPC II)
slide3

Core PRSP Principles

  • Country-led/owned based on broad-based

participation

  • Comprehensive – macro, structural, social
  • Long term perspective
  • Results-oriented
  • Costed & prioritised
  • Partnership-oriented
what s new
What’s new?
  • ‘Costed’ poverty reduction strategy linked to macro & fiscal framework
  • Outcome focused; making the links between policy & results
  • Opening-up the policy process to participation
  • New incentives, new partnership possibilities & new forms of aid delivery
slide5

Relevance in Asia?

  • Vast majority of poor people still reside in Asia
  • Pro-poor policy framework linked to resource

envelope has broad relevance

  • Joining-up macro, structural & social policy a

challenge everywhere

  • Donors role secondary to domestic constituencies
slide6

But context matters

  • Important differences between Asia & other
  • regions and within Asia itself:
    • Poverty trends & history of anti-poverty

programmes

    • Politics, planning and institutions
    • Country size and federal states
    • Debt, aid dependence & experience of IFIs
  • Principles rather than Paper or Process
slide7

Asia Update

Country

I-PRSP (Due)

PRSP (Due)

PRGF/PRSC

Apr-Jun 02

Jan-Mar 03

Jan-Mar 03

Apr-Jun 02

Oct-Dec 02

Oct-Dec 02

July-Sept 02

Apr-June 02

Jan-Mar 03

PRGF/PRSC

PRGF

PRGF*

PRGF

PRGF*

PRGF

PRGF*

Vietnam

Cambodia

Bangladesh

Pakistan

Nepal

Indonesia

Lao PDR

East Timor

India

China

Myanmar?

Afghanistan?

* New PRGF arrangement

slide8

‘Global’ Highlights

  • PRSs beginning to provide focus for allocation

& use of domestic & external resources

  • Policy priorities increasingly backed by analysis

of poverty & linked to outcomes

  • Some opening of the ‘policy space’ to broader

participation by domestic constituencies

  • ‘Proto’ linkages with other reform processes

(budgets/MTEFs, sector strategies)

  • New institutional & donor arrangements
slide9

Ongoing Challenges

  • Links to other national planning processes
  • Role of MoF vs. other central/line ministries &

devolved authorities

  • Feasibility of targets, relevance of indicators,

appropriate monitoring strategies, risk analysis

  • Sustaining participatory policy processes
  • Donor coordination / alignment of instruments
  • Countries under stress/poor performers
slide10

What does this mean for DFID?

  • Active corporate/country level engagement in all aspects of the PRS process
  • Move towards greater programmatic/budget support where PRS processes are strong
  • Increasingly separating financing & influencing
  • Longer term commitments to provision of aid
  • Working more multilaterally
  • New/different skills
challenges
Challenges
  • Ownership vs. conditionality
  • Short term results vs. long term perspective
  • Central (federal) vs. provincial (state) level working
  • Balancing between:
    • Strengthening poverty impact of policy
    • Allowing for flexibility viz. country specifics
    • Meeting fiduciary/risk management concerns
  • Joining-up with other donors and within HMG
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