Poverty Reduction Strategy Papers (PRSPs)
In September 1999, the World Bank
and the International Monetary
Fund (IMF) decided that the participatory
strategies process carried
out by countries in view of reducing
poverty should serve as a basis for
foreign aid and debt relief within
the framework of the Heavily Indebted
Poor Countries (HIPC)
Initiative. This approach has led to
the development of Poverty Reduction
Strategy Papers (PRSPs).
The basic principle underlying
PRSPs is that the needs of the poor
must appear in the forefront of
public discussion, because poverty
and inequity continue to afflict large
numbers of developing countries.
Each PRSP should describe: the
macro-economic structural and
social policies developed by a
country to enhance economic
growth and reduce poverty; the
associated external financing needs;
and major sources of financing.
The PRSP must adhere to certain
principles:
• It should be country based and
involve broad participation from
the public and private sectors.
• It should be results-oriented, and
in particular, beneficial to the
poor.
• It should have a global appre
hension of poverty and its
underlying causes.
• It should point towards public
actions which are likely to have
the most beneficial impact on
poverty.
• It should set up indicators for
results, which will be implemented
and followed through a
participatory process.
For more information on PRSPs, you
may consult the World Bank website
at the following address:
http://www1.worldbank.org/psrp/
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