1. Environment & national PRSs - directions and dilemmas EPD Seminar Series May 2002

2. 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. 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. 4 Country-led/owned based on broad-based participation Comprehensive – macro, structural, social, environmental Long term perspective Results-oriented Costed & prioritised Partnership-oriented Core PRSP Principles

5. 5 I-PRSPPRSP (I)PRSP (II) 9-24 months2-5 years HIPC(II) Decision Point HIPC(II) Completion Point 1st Annual Progress Report Preparation Status Report 2nd Annual Progress Report etc.. PRS Schedule & Key Elements IMPLEMENTATION PREPARATION

6. 6 PRS Schedule & Key Elements I-PRSP PRSP (I) PRSP (II) 9-24 months 3 years 1st Annual Progress Report Preparation Status Report 2nd Annual Progress Report etc…. PRSP elements: Poverty analysis Goals/targets Prioritised policy actions Med-term budget fw Financing plan External assistance Participatory process Monitoring and evaluation Comprehensive diagnosis Selective actions

7. 7 Links with other instruments I-PRSPPRSP (I)PRSP (II) HIPC(II) Decision Point HIPC(II) Completion Point IMF PRGF (replaces ESAF) PRGF performance criteria/benchmarks (3 years) HIPC Triggers Goals & targets (5-10 years) World Bank PRSC/other donor DBS Performance indicators/PAFs

8. 8 Links with other national processes I-PRSPPRSP (I) PRSP (II) PRSP elements: Prioritised policy actions Med-term budget fw MTEF Sector/cross-cutting strategies & priorities Resource constraints Inter/intra-sectoral priorities Service delivery Monitoring & Evaluation

9. 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. 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. 11 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) Emerging Experience

12. 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. 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. 14 Objectives of DFID support Support for strong PRSs Poverty diagnosis, prioritisation…links with other reform processes Coordination, reducing TCs, harmonisation

15. 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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