STATUS OF THE INITIATIVE
Although the Poverty Reduction Strategy (PRS) approach was introduced just over four years
ago, it is now seen as the country-level operational framework for progress towards the
MDGs. Although implementation experience has varied with regard to process and content—
both across countries as well as within individual countries’ strategies—a key contribution of
the PRS approach has been to focus attention on country-specific constraints to development.
In many low-income countries the PRS initiative has also resulted in a sharper focus on
poverty reduction, a more open participatory process and greater attention to monitoring
poverty-related outcomes.
Over the past year (through end-June 2004), ten more countries have finalized full PRSPs,
bringing to 42 the number of countries implementing PRSs. Twenty-three countries now have
completed one or more annual progress reports (APR).
ISSUES IN IMPLEMENTATION
The main findings of this progress report are twofold. First, countries have made good
progress in addressing the more straightforward challenges inherent in the approach. For
example, poverty analysis is relatively good, strategies recognize the importance of growth
and macroeconomic stability, indicators lists are being rationalized, and sectoral coverage is
broadening. Second, the challenges that remain are technically difficult and institutionally
complex. For example, the analysis of the sources of growth and its distributional impact
remains relatively weak and countries have also experienced difficulties in marrying their
aspirations for the future with the resource and capacity constraints of the present in the
context of their PRSs.
To better realize the potential of the PRS approach, sustained efforts on the part of countries
and their development partners are, therefore, needed to: (i) reinforce the PRS as a country-
driven approach; (ii) enhance the analysis that underpins a PRS; (iii) strengthen the
institutional capacity for successful implementation; and (iv) enhance aid effectiveness. Given
the scope of these challenges, expectations need to be ambitious yet realistic, while capacity
building and analytical support must be appropriately prioritized and sequenced at the country
level.download
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