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Ms. Gabriela Inchauste
This paper aims to inform on the status of Poverty and Social Impact Analysis (PSIA) in IMF-supported programs, detailing the results presented in the recent review of PRGF-supported programs. The review showed that more needs to be done, both in undertaking PSIA when necessary, and in reporting the policy tradeoffs in program documents. Policy design should be continuously informed by the results of PSIA.
International Monetary Fund
This Joint Staff Advisory Note focuses on the Poverty Reduction Strategy Paper (PRSP) for Albania. The note analyzes the National Strategy for Development and Integration (NSDI) program, which represents a significant improvement in process over the previous PRSP. The note discusses that the main strengths of the current process are strong government ownership; a broader participatory process that lays the foundation for greater civil society participation in public policy making; an improved poverty diagnosis; and ambitious plans for monitoring the overall effectiveness of Albania’s public expenditures.
International Monetary Fund
This paper reviews macroeconomic developments in Albania during 1997–99. Backed by a tightening of monetary policy, inflation subsided quickly in the second half of 1997, and the exchange rate recovered from its earlier sharp depreciation. In 1998, the authorities continued on the path toward macroeconomic stabilization, implementing a tight budget with savings in noninterest current spending and strong revenue measures. Inflation decreased rapidly from 42 percent at end-1997 to below 9 percent at end-1998 and continued on its downward path in 1999.