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Experience with PRSP in Vietnam: Achievements and Challenges

Experience with PRSP in Vietnam: Achievements and Challenges. Mr. Nguyen Van Phuc Deputy Director Foreign Economic Relations Department Ministry of Planning and Investment, Vietnam. Achievement 1: Developing Vietnam’s PRS.

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Experience with PRSP in Vietnam: Achievements and Challenges

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  1. Experience with PRSP in Vietnam: Achievements and Challenges Mr. Nguyen Van Phuc Deputy Director Foreign Economic Relations Department Ministry of Planning and Investment, Vietnam

  2. Achievement 1: Developing Vietnam’s PRS • Vietnam’s PRS called “Comprehensive Poverty Reduction and Growth Strategy • Based on 2000 Poverty Assessment Report called “Vietnam: Attacking Poverty” • Localizing MDGs to reflect local context

  3. Achievement 2: Effective participation and wide consultation • Active role of Poverty Task Force • 8 consultation workshops with line ministries, government agencies, parliament, civil society,… and village consultation on draft strategy • Many technical meetings and discussions

  4. Achievement 3: Combining quantitative and qualitative information in poverty assessments and monitoring progress • 4 PPAs done in 1999 • Regional poverty assessments in 2002 based on PPAs in 14 provinces and Vietnam Household Living Standard Survey 2002 • Ten year strategy for Living Standard Household Survey

  5. Achievement 4: Rolling-out CPRGS to sub-national level • Holding 5 regional workshop to integrate the CPRGS process into local planning • Piloting CPRGS process in several provinces • Developing the first CPRGS Progress Report

  6. Key performance: Growth and poverty reduction • Annual growth rate: 7 % • Poverty reduction: • 1993: 58% • 1998: 37% • 2002: 29%

  7. Challenges in preparing the CPRGS • It was new for us to see poverty reduction as an integrated part of general economic policy making and planning (and not just in terms of targeted assistance to the poor) • Coordination between the many different govt. agencies and other organizations involved • Translating general socio-economic policies into specific policy measures and actions with clear implementation roadmap

  8. Challenges in preparing the CPRGS (cont’d) • Obtaining agreement from all stakeholders: govt agencies, WB, IMF, other donors and NGOs. • Their individual suggestions and advice were often completely the opposite!

  9. Impact on existing planning process National level • CPRGS actions integrated into annual socio-economic development plans by Ministry of Planning and Investment and by some pilot sector ministries • Developing Medium Term Expenditure Frameworks (MTEFs) – that link public spending to outcome targets 2003-2008 (four sectors: education, health, transport and agriculture) • More emphasis on monitoring and using reliable high quality data for evaluation of policy actions

  10. Impact on existing planning process (cont’d) National level • Reviewing the Public Investment Plan and strengthening appraisal of investments (developing criteria to allocate central government investment fund to ensure high and sustainable growth and poverty reduction) • Annual PRSP Progress Report

  11. Impact on existing planning process (cont’d) Provincial level • Integration of CPRGS into annual socio-economic provincial plans is taking place. We organized five regional workshops to integrate PRSP process into local planning. • Poverty Assessment done at the regional level (in close collaboration with six donors); results to be used by all 61 provinces for adjusting their next annual plan.

  12. Impact on existing planning process (cont’d) Provincial level 3. Close guidance for strengthening planning processes provided in a few pilot provinces 4. Training in poverty monitoring and data analysis for Provincial Statistical Officials, (based on Vietnam household living standard measurement survey)

  13. Relations with donors • Most donors have aligned their assistance plans to the CPRGS: consensus on what needs to be done and what needs to be monitored (VDGs / MDGs). • ODA growing, harmonisation on-going (both policy and procedure) • Partnerships for direct support to sector plans are growing (e.g. Education for All), but some concern about insufficient accountability mechanisms in government

  14. Relations with donors (con’t) • Ten donors co-finance the annual Poverty Reduction Support Credit - PRSC (a mechanism to reward the implementation of the CPRGS) • Several donors (UNDP, WB, Sweden) already have technical assistant projects to support rolling-out of the PRSP to sub-national levels. Others (German, Denmark) are also committed to support this process and finalizing TA documents

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