Taking stock of poverty reduction efforts PRSP approach is strongly endorsed

• Author: Gita Bhatt
• Position: IMF Policy Development and Review Department
• Pages: 33-37

Page 33

What better way to hone the effectiveness of a new approach to policymaking for poverty reduction than to take stock of experience with it and feed the lessons back into its design and implementation? The International Conference on Poverty Reduction Strategies during January 14-17 in Washington,D.C., sought to do just that, gathering 200 representatives from 60 countries to share their firsthand knowledge of poverty reduction strategy papers (PRSPs).

Joining them were their development partners: representatives from international organizations, bilateral aid agencies, and civil society organizations from developed and developing countries. It is clear that the PRSP approach is still evolving, and that everyone involved is learning by doing. That is why, said IMF Managing Director Horst Köhler, "it is critical that we take this opportunity, two years into the process, to ask how it can be improved in light of the early experience."

Consensus and debate

Ideas and proposals were the purpose and the product of the conference. Reflecting the extensive consultation that had already taken place, including four regional conferences (see IMF Survey, January 28), the international conference refined and reinforced the main messages that had been emerging from participating groups. Chief among these messages was a strong endorsement of the PRSP approach, which all agreed had made important progress in a relatively short time.

The PRSP gave a central focus toPage 35poverty reduction, strengthened participation in policymaking, and provided a single strategy around which development partners could orient their activities.

But those attending were not shy about highlighting areas where improvements were needed. The PRSP had inevitably given rise to tremendous expectations and, in some areas, had clearly not met these.

Patience, participants counseled. Recognize capacity constraints and acknowledge that countries start from very different points; set realistic growth targets; manage expectations; and realize that changing the way development partners interact will take time.

"Behavioral change comes slowly," observed Jim Wolfensohn, President of the World Bank, "but when it comes, it really comes."

To move from papers to programs to poverty reduction is really the fundamental challenge, said John Page, Director, Poverty Reduction Group,World Bank. No one needs another document on a shelf, IMF First Deputy Managing Director Anne Krueger stressed-there needs to be real impact on what governments and their development partners do. And none of this, Köhler noted, will happen in a vacuum.

Successful poverty reduction requires expanded market access for developing...