The World Bank and the International Monetary Fund (IMF) list the main challenges for better national Poverty Reduction Strategy Papers (PRSPs)

Since the last World Bank-International Monetary Fund (IMF) joint review (March 2002), the number of completed Poverty Reduction Strategy Papers has doubled to 18, and many other countries have made substantial advances in the design and implementation of their poverty reduction strategies. The two organizations agree on the dynamism and relevance that the PRSP approach has raised at the country level but recognise that substantial challenges remain. In the "PRSPs Progress in Implementation", document published in September 2002 they list the main challenges that countries and their development partners will need to address over time. Some of these are:

- Building capacity: increased national capacity for policy design, improved budget management and more systematic monitoring and reporting of poverty trends.

- Opening up the policy dialogue: design of macroeconomic frameworks underpinning PRSPs, development of alternative scenarios, policy reform options and extension of participatory processes to include private sector options.

- Aligning external assistance behind national strategies: linking donor assistance more closely to PRSP priorities.

- Integrating national poverty reduction strategies into budgetary priorities and implementation: better linkage of PRSPs with core decision-making processes, in particular national budgets.

For further information on PRSPs click here.

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