Separately, Fund Directors called for a review of the Poverty Reduction and Growth Facility (PRGF) that would also include contributions from external parties, to be done in parallel with this review. See Review of the Poverty Reduction and Growth Facility: Issues and Options, SM/02/51, February 15, 2002.
Review of the Poverty Reduction Strategy Paper (PRSP) Approach: Early Experience with Interim PRSPs and Full PRSPs, SM/02/54, and SecM2002-0086, February 15, 2002.
These include several small island countries, some IDA/IBRD blend countries, several conflict-affected countries, as well as countries that are presently in arrears to either of the two institutions and/or do not presently have the track record to gain access to PRGF resources.
The Bank is presently carrying out related work on Low Income Countries Under Stress (LICUS), which will be discussed by the Bank Executive Board’s Committee of the Whole in late March 2002.
Strengthening World Bank-IMF Collaboration on Country Programs and Conditionality, August 24, 2001.
This indicator is imperfect, as not all public education and health spending is poverty reducing. It is also important to note that the reallocation of budgetary expenditure will only translate into improved poverty outcomes if there are corresponding improvements in budget execution and access for the poor, and a number of PRSPs have included reforms in these areas.
See Joint Bank/Fund Board paper on Actions to Strengthen the Tracking of Poverty-Reducing Public Spending in Heavily Indebted Poor Countries, SM/02/30 and IDA/SECM2002-0030, January 30, 2002.
CASs are country-specific business plans for the Bank which, in the case of low-income countries, will be based on the priorities set out in the country’s PRSP.
The seven key features of PRGF-supported programs are broad participation and greater ownership, embedding the PRGF in the overall strategy for growth and poverty reduction, budgets that are more pro-poor and pro-growth, ensuring appropriate flexibility in fiscal targets, more selective structural conditionality, emphasis on measures to improve public resource management/accountability, and social impact analysis of major macroeconomic adjustments and structural reform. See SM/02/51, Review of the PRGF: Issues and Options, February 15, 2002.
For the “retroactive” countries that had achieved Decision Points under the original HIPC Initiative framework, which include Benin, Bolivia, Burkina Faso, Guyana, Mali, Mozambique, Senegal and Uganda, completion of the full PRSP—not one year of implementation—is a trigger for the Completion Point. The requirement for “non-retroactive” countries, which include Honduras, Mauritania, Nicaragua, Tanzania and others is completion of the full PRSP and one year’s satisfactory implementation thereof.