Policies to Roll - back the State and Privatize ? Poverty Reduction Strategy Papers

This paper investigates poverty reduction strategy papers (PRSPs), launched by the International Monetary Fund/World Bank in 1999 as conditions for debt relief and loans. It queries whether PRSPs really represent a shift away from the controversial structural adjustment programmes (SAPs) of the past. Ostensibly PRSPs have a greater focus on poverty reduction, yet this investigation finds little has changed. Existing PRSPs lack essential components such as land reform and gender awareness, while changes with questionable impacts on poverty, such as liberalization and privatization, are promoted as beneficial. The 'participation' of civil society groups in drawing up PRSPs is found to be unsatisfactory, as is 'ownership' of PRSPs by governments. This paper stands as a critique of PRSPs and their assumed improvement on SAPs. was established by the United Nations University as its first research and training centre and started work in Helsinki, Finland in 1985. The purpose of the Institute is to undertake applied research and policy analysis on structural changes affecting the developing and transitional economies, to provide a forum for the advocacy of policies leading to robust, equitable and environmentally sustainable growth, and to promote capacity strengthening and training in the field of economic and social policy making. Its work is carried out by staff researchers and visiting scholars in Helsinki and through networks of collaborating scholars and institutions around the world. Camera-ready typescript prepared by Liisa Roponen at UNU/WIDER Printed at UNU/WIDER, Helsinki The views expressed in this publication are those of the author(s). Publication does not imply endorsement by the Institute or the United Nations University, nor by the programme/project sponsors, of any of the views expressed. Acronyms CSOs civil society organizations ESAF enhanced structural adjustment facility EU European Union Eurodad European Network on Debt and Development FDI foreign direct investment GDP gross domestic product HIPC highly indebted poor countries IFI international financial institution IMF International Monetary Fund I-PRSP interim poverty reduction strategy paper NGOs non-governmental organizations ODA overseas development assistance PRGF poverty reduction and growth facility PRSC poverty reduction support credit PRSG poverty reduction support grant PRSP poverty reduction strategy paper UN United Nations UNDP United Nations Development Programme WTO World Trade Organization 1 Executive summary Poverty reduction strategy papers (PRSPs) were launched by the International Monetary Fund and the World Bank at their annual meetings in September 1999. They replaced structural adjustment programmes as the new preconditions for loans and debt relief from both …