Environment

1
Environment national PRSs -directions and
dilemmas

• EPD Seminar Series
• May 2002

2
Organisation

• Overview of the PRS process
• Mainstreaming in a PRS context
• Objectives of DFID support
• Options for engaging on environmental issues
• Group work

3
Origins of the PRSP Idea

• Mixed record on poverty reduction in 1990s
• (Africa, Transition economies, post-1997 Asia)
• Findings on aid effectiveness projects,
• policy conditionality, ownership
• International Development Targets/MDGs
• Multilateral funding for debt relief (HIPC II)

4
Core PRSP Principles

• Country-led/owned based on broad-based
  participation
• Comprehensive macro, structural, social,
  environmental
• Long term perspective
• Results-oriented
• Costed prioritised
• Partnership-oriented

5
PRS Schedule Key Elements
Preparation Status Report
1st Annual Progress Report
2nd Annual Progress Report etc..
IMPLEMENTATION
PREPARATION
I-PRSP
PRSP (I)
PRSP (II)
9-24 months
2-5 years
HIPC(II) Completion Point
HIPC(II) Decision Point
6
PRS Schedule Key Elements
1st Annual Progress Report
Preparation Status Report
2nd Annual Progress Report etc.
I-PRSP
PRSP (II)
PRSP (I)

• PRSP elements
• Poverty analysis
• Goals/targets
• Prioritised policy actions
• Med-term budget fw
• Financing plan
• External assistance
• Participatory process
• Monitoring and evaluation

3 years
9-24 months
Comprehensive diagnosis
Selective actions
7
Links with other instruments
PRGF performance criteria/benchmarks (3 years)
IMF PRGF (replaces ESAF)
World Bank PRSC/other donor DBS
Performance indicators/PAFs
Goals targets (5-10 years)
I-PRSP
PRSP (I)
PRSP (II)
HIPC(II) Completion Point
HIPC(II) Decision Point
HIPC Triggers
8
Links with other national processes
Sector/cross-cutting strategies priorities

• PRSP elements
• Prioritised policy actions
• Med-term budget fw

I-PRSP
PRSP (I)
PRSP (II)
MTEF
Resource constraints Inter/intra-sectoral
priorities Service delivery Monitoring
Evaluation
9
Whats new?

• Costed poverty reduction strategy linked to
  macro fiscal framework
• Outcome focused making the links between policy
  results
• Opening-up the policy process to participation
• New incentives, new partnership possibilities
  new forms of aid delivery

10
Emerging Experience

• Upgrading of poverty policy MoFs engaged
  (Malawi)
• Achieved at some cost to sentiments of national
• ownership but IFIs getting better at stepping
  back (Mali)
• Quality of PRS process document heavily
  influenced
• by density of previous strategy reform
  effort(s)
• Synergy with MTEFs especially important but there
  is value-added in having PRSP as well (Rwanda,
  Benin)
• Sometimes catalyst for changing donor behaviour
  (Bolivia), sometimes not

11
Emerging Experience

• Participatory processes generally limited to
  consultation,
• depth of understanding limited outside core
  PRSP group
• Ambitious targets, weak prioritisation
  costing of policy
• actions
• Anti-poverty content variable, sectoral focus,
  weak
• integration of cross-cutting themes/priorities
• Monitoring evaluation still the poor
  relative, although this
• is changing (Uganda, Rwanda, Tanzania,
  Ethiopia,
• Bolivia)

12
Mainstreaming in a PRS context

• Working through national systems and processes
• Poverty analysis (Nigeria workshop)
• Engaging civil society (Kenya)
• Influencing PRSP and other policy (Uganda NEMA)
• Monitoring and evaluation (Vietnam VDTs)
• Building on existing reform processes/efforts
• Uganda - Plan for Modernisation of Agriculture
• Rwanda MTEF and ubudehe
• Bolivia - decentralisation

13
Mainstreaming in a PRS context

• Working with through other donors
• Joint donor financing mechanisms in much of
  Africa
• Bolivia - bilateral JSA
• Poverty Task Force in Vietnam
• Engaging with a broad range of stakeholders
• Importance of PPAs (Rwanda, Uganda)
• Capacity building of organised civil society
  (Kenya)
• Working with the private sector (esp in
  transition economies)
• Sectoral and local government (Bolivia)

14
Objectives of DFID support

• Support for strong PRSs
• Poverty diagnosis, prioritisationlinks with
  other reform processes
• Coordination, reducing TCs, harmonisation

15
Identifying entry points

• Poverty analysis - input to the analysis to
  ensure comprehensive?
• PSIA - feed into ex ante analysis of impacts of
  policies?
• Priority areas - help with analysis of
  sustainability of the selected priority actions?
  
• Organised civil society - support those working
  in areas related to broad environment agenda?
• Engaging with line ministries - when key
  ministries are drafting their sectoral
  strategies, can begin dialogue over
  sustainability of key policy areas?
• Working with other donors - look to fund
  interventions jointly?

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