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General Budget Support in Honduras: Progress and Challenges (2007 Meeting)

This presentation reviews the trajectory of General Budget Support (GBS) in Honduras, focusing on critical historical events from 1999 to 2007. It assesses the current status and challenges facing the GBS framework, including poverty analysis, implementation capacity, and alignment with budget cycles. The discussion touches on the impact of various IMF programs, the necessity of conditionality, and the importance of stakeholder ownership in the consultative process. It raises key questions about the efficiency of the Poverty Reduction Strategy (PRS) amid shifting international agendas.

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General Budget Support in Honduras: Progress and Challenges (2007 Meeting)

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  1. 4th LAC PRS Donor Network Meeting 14-15 June 2007 PRS and General Budget Support The Case of Honduras Presented by Anna Ferry, Economist Sida

  2. 1. Short history of GBS in Honduras 2. Where do we stand today?

  3. Short General Budget Support History • 1999-2001 WB Emergency Trust Fund, Swedish GBS • 2002 off-track IMF-PRGF • 2004 new IMF-PRGF, WB-PRSC I, Swedish GBS • 2005 IMF-PRGF on track, HIPC Completion Point, no compliance with PRSC II triggers, no Swedish GBS • 2006 no revision concluded with IMF-PRGF, no PRSC, no credit from KfW, no Swedish GBS, but three IDB-PBLs agreed upon • 2007 agreement with IMF expired, intent of PRSC with bilateral GBS from Germany (KfW) and Sweden

  4. Where do we stand today? • Poverty analysis • Ownership and process of consultation • Consistency • Capacity of implementation • Monitoring and results framework

  5. Where do we stand today? • Conditionality • Necessity of IMF program • Alignment with budget cycles

  6. Issues for discussion • What is an efficient PRS ? • Can PRS be efficient if the Paris Agenda is not implemented ?

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