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Key Text Reducing Poverty or Repeating Mistakes? A Civil Society Critique of Poverty Reduction Strategy Papers

Author: K Cash and D Sanchez
Date: 2003
Size: 46 pages (350 KB)

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Summary

Poverty Reduction Strategy Papers (PRSPs) have become the basis for developing countries to access lending and aid grants from international donors. Under this approach, national governments are meant to formulate a plan for alleviating poverty together with civil society. This paper, published by a coalition of Swedish non-governmental organisations, argues that the PRSP process privileges growth over poverty reduction, and has not incorporated broad-based participation.

The World Bank and the International Monetary Fund introduced PRSPs in 1999 to replace their much-criticised structural adjustment programmes. Key aims were that the new strategies should be nationally ‘owned’ and focused on reducing poverty. Yet the experiences of the partner organisations consulted for this report, based in nine countries, suggest that international financial institutions (IFIs) and donors are still driving the PRSP process. Their critique and recommendations for action focus on the role and capacities of governments, donors and civil society in relation to three areas: the process of developing PRSPs, their content, and implementation and monitoring.

The underlying problem is that PRSPs are externally imposed. Governments must produce a paper and have it approved by the World Bank before they can access financing. Calling such a process ‘country-driven’ is paradoxical – especially when governments seem to choose policies that are acceptable to the IFIs, rather than those put forward by their citizens. Other failings include:

A lack of appropriate institutional frameworks for broad-based participation. Women, children and indigenous groups have been routinely left out, and parliaments have played a very minor role.
Poor-quality participatory processes due to rushed timetables and limited government and civil society capacities. Government will to engage with civil society is crucial.
Contents that reflect IFI policy prescriptions rather than the priorities of the poor. Strong IFI influence has also led to faulty poverty analysis.
The priority given to economic growth over poverty problems. The negative social impact of growth strategies is often overlooked, and redistribution rarely considered.
A widespread avoidance of equity issues and a lack of measures to help vulnerable groups.
The inadequacy of financing to implement PRSPs. Current levels of debt relief are not sufficient to boost growth and reduce poverty. Aid flows are unreliable, which can make planning very difficult.

When funds and capacity are restricted, governments tend to opt for macro-economic reforms over pro-poor policies. These obstacles cast serious doubt on the successful implementation of PRSP strategies. Many recommendations are made to improve the process. Donors, in particular, should:

Encourage governments to use participatory exercises, provide adequate funding for these and support discussion of policy alternatives.
Reduce their reliance on visiting missions, co-ordinate with other development partners and assist in resolving external problems such as market access.
Re-think structural adjustment policies, consider alternative policies and ensure that lending conditions are consistent with achieving PRSP poverty objectives.
De-link PRSPs from current debt relief initiatives and promote and provide debt cancellation.
Build an integrated aid approach that provides direct support to developing country budgets.
Put pressure on governments to prioritise pro-poor policies.

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Source: Cash, K. and Sanchez, D., 2003, 'Reducing Poverty or Repeating Mistakes? A Civil Society Critique of Poverty Reduction Strategy Papers', Church of Sweden Aid/ Diakonia/Save the Children Sweden/The Swedish Jubilee Network.
Author: Diana Sanchez , diana@diakonia.co.za
Diakonia, http://www.diakonia.se
Organisation: Church of Sweden Aid, http://www.svenskakyrkan.se/lutherhjalpen/indexeng.htm