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The use of IFI replacing PRSP - Essay Example

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The process of developing the Poverty Reduction Strategy Paper (PRSP) involves drafting by the government of the country, generally the Ministry of Finance. It requires consultation from the International Finance Institutions (IFIs)…
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The use of IFI replacing PRSP
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The use of IFI replacing PRSP

Download file to see previous pages... It is a road map that leads the organizations involved in this process, to the making of the final PRSP. During the period in which the document is formulated, greater participation by the civil society is encouraged. The data that provides information on the nature of poverty and its distribution are collected and considered for statistical analysis.
According to the IMF and the World Bank, the PRSP document must present an exclusive description of the participatory process for the making of the document, a comprehensive diagnosis of the problem of poverty, clear description of the social and economic priorities and transparent targets in accordance with the costs incurred by the society. The PRSP acts as an indicator of the monitoring system and helps in evaluating the process of progress (Christiansen and Hovland, “The PRSP Initiative: Multilateral Policy Change and the Role of Research”).
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This is because the process is highly context specific and the does not follow any pre determined critical pathway that would directly lead the government of the country to develop the PRSP (Christiansen and Hovland, “The PRSP Initiative: Multilateral Policy Change and the Role of Research”). The basic principle followed for the drafting of the interim PRSP is to follow the broad participation rate, engagement of the civil society as well as the private sector in deciding the structure of the expenditure and their priorities. Structural adjustment measures in Pakistan Pakistan has undergone a number of structural adjustment programs since the 1970s. The adjustment modification that was undertaken in the 1980s had brought improvement in the economic performance of the country and also made the common population capable of responding to the economic changes occurring in the economy of Pakistan. However, the focus of these structural adjustment lied solely on increasing efficiency of economic activities in order to bring economic benefits, but, attention had not been given to the problem of rising income inequality. Incidence of poverty has grown over the years and at present there is huge inequality in distribution of income (James and Pyatt, “Three-Gap Analysis of Structural Adjustment in Pakistan”). These factors have necessitated the drafting of the Poverty Reduction Strategy Papers. The government (Finance Ministry of the Government) along with the civic bodies in the nation, individual participants and non-governmental organizations work in synchronization to develop the draft of the PRSP backed by the international financial institutions (IFI). The PRSP has been aimed at replacing the existing structural adjustment measures in the ...Download file to see next pagesRead More
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