Regional Roundtable for SADC Parliamentarians Johannesburg – South Africa, 24 th November 2006 Theme Parliament’s Role in Poverty Reduction: Enhancing Macro-Economic Policy Approaches “MACRO-POLICY FORMULATION PROCESS: CHALLENGES FOR THE LEGISLATURE FOR ENHANCING PRO-POOR POLICY MAKING AND IMPLEMENTATION” by Philip A. COBBINA Budget & Governance Advisor, Africa Poverty Reduction office of the Canadian Parliamentary Centre

MACRO-POLICY FORMULATION PROCESS: CHALLENGES FOR THE LEGISLATURE FOR ENHANCING PRO-POOR POLICY MAKING AND IMPLEMENTATION Why the macro policy formulation process Macro policies in Africa Role of parliaments in macro policy formulation Macro policy formulation: key challenges

Why the Macro Policy Formulation Process Meeting goals and objectives Time-bound outcomes Integral part of any successful development process

Macro Policies in Africa Structural Adjustment Programs (SAPs) Highly Indebted Poor Country Debt Relief Initiative (HIPC) Poverty Reduction Strategy Papers (PRSPs) New Partnership for Africa's Development (NEPAD) Millennium Development Goals (MDGs)

Structural Adjustment Programs (SAPs) Economic policies designed and implemented by the IMF & the World Bank Key features: Export-led growth; Privatization and liberalization; and Free market. Actions taken by developing countries: Currency devaluation (against major currencies - $ etc); Lifting of import and export restrictions; Balanced budgets and not overspend; and Remove price controls and state subsidies.

Highly Indebted Poor Country Debt Relief Initiative (HIPC) Launched in 1996 by the IMF and World Bank, with the aim of ensuring that no poor country faces an unsustainable debt burden; Reviewed in 1999, to provide “faster, deeper and broader” debt relief and to strengthen the links between debt relief, poverty reduction

HIPC: Eligibility Criteria International Development Association – only (IDA-only) and Poverty Reduction and Growth facility – eligible (PRGF-eligible); Facing unsustainable debt burden, beyond traditionally available debt-relief mechanisms; Establish a track record of reform and sound policies through IMF and IDA-supported programs; and Develop a Poverty Reduction Strategy Paper (PRSP).

Poverty Reduction Strategy Papers (PRSPs) Structural and social policies and programs that promote broad-based growth and reduce poverty Core Principles underlying the PRSP Development approach Country-driven, national ownership broad-based participation Result-oriented focused on outcomes beneficial to the poor; Comprehensive in recognizing the multidimensional nature of poverty; Partnership-oriented, involving coordinated participation of development partners (government, domestic stakeholders, and external donors); and Based on a long-term perspective for poverty reduction

New Partnership for Africa's Development (NEPAD) Continental collaboration for development It is an African Agenda to: Promote accelerated growth and sustainable development Eradicate widespread and severe poverty Halt the marginalization of Africa in the globalization process

Millennium Development Goals (MDGs) Eradicate extreme poverty and hunger; Achieve Universal Primary Education; Promote gender equality and empower women; Reduce child mortality; Improve maternal health; Combat HIV/AIDS, malaria and other diseases; Ensure environmental sustainability; and Develop a global partnership for development.

Role of Parliaments in Macro Policy Formulation Constitutional requirement (major policy initiatives, subjected to legislative debate ) Consensus building and ensuring participation through the development of effective harmonious linkages Useful check on a dominant executive

Macro Policy Formulation: Parliament’s Role in the Budget Process

Executive and Legislative relationship in the budget process

Macro Policy Formulation: Key Challenges Building consensus and gaining broad participation around a national development agenda Monitoring and evaluation Access to knowledge and information Connect and fully engage with the vulnerable and excluded Implementation

THANK YOU