Environment in PRSPs & PRSCs Laura Tlaiye Environment Department World Bank Experiences from the PRSP Process September 29, 2005

Outline Why bother? 2. Environment in PRSPs and PRSCs 3. Recommendations

Do PRSPs really matter? Process builds expectations & accountability PRSPs include targets, indicators, timetables Progress reports Basis for PRSCs & donor coordination

PRSPs: Method PRSPs in 53 countries (end FY04) Environment scored on 17 criteria Scale 0 to 3 (0 = no mention; 3 = good practice) Unweighted average used

PRSPs: Findings Wide variation across countries in average score: 0.3 to 2.4 Average score for all countries: 1.4 Full PRSPs improve significantly over interim

High Scoring PRSPs Zambia Ghana Cambodia Mozambique Sri Lanka Yemen Honduras Nicaragua Bolivia Azerbaijan

The Cambodia PRSP Significant attention to NR degradation Explicit recognition of poverty-environment links Vulnerability to natural hazards in focus Emphasis on empowerment of communities for NRM Detailed program for investment in environmental management

PRSCs: Method 21 PRSCs reviewed Loan range: $18-250 m; Average: $ 90 m Rating on same scale as PRSPs Only on responses (5 variables) + process (1 variable) + context variable

PRSCs: Findings Wide range in scores: 0.7-2.7 Average score for all countries: 1.4 Top score: Benin Too early to determine trend

Benin PRSC Specific emphasis on forestry (annexes on environmental topics) Multi-donor support very explicit Attempts to include environment in budget process Specific monitoring activities identified

Recommendations Serve as facilitator for mainstreaming Draw on previous analytical work, incl. NEAPs Integrate MDG7 Include domestic environmental constituency Progress Reports should follow up SUSTAINABLE DEVELOPMENT REFORMS: 1. Typically two objectives: -Integrating environment in key sectors of the economy -Improving efficiency and effectiveness of environmental management 2. Examples of sectors: -Mexico: Energy, Water, Forests, Tourism -Brazil: Banking, Sanitation, Chemicals 3. Programmatic Design

Future Outlook Shift is needed: Environmental impacts of individual reforms building national capacity to manage potential effects Increasing emphasis on institutions, governance, and participation How Can We Help Low-Income Countries Move in that Direction? 1. Support countries to use tools that emphasize both analytical work and participatory techniques 2. Support monitoring and outcomes-focus 3. Support institutional analyses to identify how country processes can more effectively learn from and use the tools above in decision-making More holistic approach that brings in institutional and governance dimensions into SEA methodology