The use of IFI replacing PRSP - Essay Example

? A briefing report critiquing the use of IFI replacing PRSP of the of the number A briefing report critiquing the use of IFI replacing PRSP Introduction 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), the major donors that help the economic development of the country and the civil society for which this development strategy is undertaken. 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”). Poverty Reduction Strategy Paper The Poverty Reduction Strategy Paper (PRSP) refers to a document representing a detailed analysis of the economic status of a country that is making strategic decisions to reduce poverty in the country. Such countries are often highly indebted to the international bodies such as the International Monetary Fund and the World Bank. These organizations make considerations about relieving these countries of the burden of debt or lessening the amount of debt. These countries define national strategies to reduce the incidence of poverty in their societies and involve the government, private organizations, Non governmental bodies (NGOs) and the community as a whole. The description of the PRSP does not have a rigid framework and the process of emergence of this strategy paper is not known. 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 country in order to make the development measures effective. Participation of women Participation has become an important element in the process of development of the PRSP. In a country like Pakistan, development issues are highly intimidated by various social and cultural issues (Taj, “Policing in Purdah: Women and Women Police Station, Peshawar, NWFP, Pakistan”). These issues are rooted deep into the customs of the nation that guide psychographic and behavioural patterns of the citizens. Like other countries having a majority of the population following the Muslim religion, Pakistan has a legacy of the ‘Purdah system’ that limits mobility of women outside her house (Haque 303; Parpart and Zalewski 97). A non-governmental organization (NGO) works in Pakistan in collaboration with the national government for the drafting of the poverty reduction strategies. This NGO is based in the United Kingdom, London and works in several countries including Pakistan. It works with the aim of improving the living standard of the rural population in the country. The NGO maintains highest focus on advocacy work by way of which it promotes participation of national civil actors in the PRSP design process. The country is in the process of designing an IFI backed PRSP to replace existing structural adjustment measures and the NGO particularly puts attention on the rate of participation by women groups. This is because the country’s women are more backward than the male population and they are found to be the worst sufferers of gender discrimination and poverty (Chaudhry and Rahman 175; Molyneux, “Change and continuity in social protection in Latin America: Mothers at the service of the State?”). Extent of policy changes A significant effect on the impact of the PRSP programme is cast by the governance quality in the country and the sincerity of the government agents. It affects the results of the development policies and the outcomes of the strategies adopted for poverty reduction. Extent of policy changes can be measured by officially legitimising the rate of participation and number of people participating in these policy change measures, according to the gender and other demographic attributes. Experts claim that it helps both policy makers and the beneficiaries that are the target population for these strategies. The policy makers are benefitted since they are accountable for the performance of the population, the effect of these strategies on their living standards and, official legitimization of the participatory population helps them to account for the proportion of population that have not been effectively brought under the canopy of these measures. The concern of the British based NGO is that the civic bodies and other organizations working for the drafting of the PRSP woefully lack awareness and preparation required for efficient evaluation of the approach adopted for PRSP. The result of this lack is that a convincing analysis of the poverty scenario in the country is not made at the interior local levels of the country. The distributional effect of government expenditures in Pakistan cannot be assessed accurately. However, the NGO works on this ground as much as possible to make the drafting of the PRSP in the poor country a success and make policy changes effective (Levinsohn “The World Bank’s Poverty Reduction Strategy Paper Approach: Good Marketing or Good Policy?”). All stakeholders nation-wide would be involved in the process of drafting PRSP for the country, however, the NGO focuses on the lower income class and the female population in the country that are mostly excluded from the decision making process (“Accelerating Economic Growth and Reducing Poverty: The Road Ahead”). Effect of PRSP on policy changes A new era for the IFI's The development of PRSP approach marks the beginning of a fresh era in the political scenario of Pakistan. The development changes that Pakistan aims at are accelerated economic growth that would be sustained in the broad rural population, reduced poverty, access to the essential economic and social services to the population (particularly the poor), development of infrastructure, creation of new job opportunities and improvement in the overall governance in the country. While notable changes have been made in the aspect of infrastructure development, much is yet to be done on the employment opportunity creation and reduction of poverty. These policies also aim at improving educational standards in the country. Identifying the levels of poverty is a complex task and it passes through a multidimensional process consisting of several phases. It extends beyond the view of income distribution and covers all three aspects; social, economic and political. The strategies adopted for poverty reduction envelops all these factors and the new era after the drafting of the PRSP is expected to reflect improvements in these arenas (“Accelerating Economic Growth and Reducing Poverty: The Road Ahead”). Conclusion Since the 1990s, the problem of poverty has been a serious concern for policy makers in the developing countries as well as the international organizations. The International Financial Institutions are the key drivers that facilitate the poverty reduction strategies to be developed in these countries. In Pakistan, the non-governmental organizations make a significant contribution to the formation of the poverty reduction strategies. This is important for obtaining the debt relief and also for convincing donor organizations about the credibility of the country’s development programme (Chant 516). However, there are doubts regarding the extent to which the positive impact of these strategy developments would be realized among the masses. The existing income difference among the income groups in the country is the primary hurdle towards launching a holistic development program. As a result of PRSP, arrangements have been made to empower women and pull them out of poverty by making cash transfer to them. Women are “the new poverty agenda” (Chant 516). This agenda reflects “feminisation of responsibility” (Chant 516) through which women would be trusted with greater responsibilities and would be considered an important part of the decision making process in the economy as well as the society (Molyneux 427; Molyneux and Razavi 56). This would ensure that development proceedings and poverty reduction measures are not hindered by any gender gap in the economy. Works cited “Accelerating Economic Growth and Reducing Poverty: The Road Ahead.” World Bank. Poverty Reduction Strategy Paper Secretariat, December 2003. PDF File. Christiansen, Karin and Ingie Hovland. “The PRSP Initiative: Multilateral Policy Change and the Role of Research.” ODI. Overseas Development Institute, August 2003. PDF File. Chaudhry, Imran Sharif and Saeed ur Rahman. “The Impact of Gender Inequality in Education on Rural Poverty in Pakistan: An Empirical Analysis.” European Journal of Economics, Finance and Administrative Sciences 15. 2009 (2009): 174-187. Chant, Sylvia H. The International Handbook of Gender and Poverty: Concepts, Research, Policy. Camberley: Edward Elgar Publishing, 2011. Print. Haque, Riffat. “Gender and Nexus of Purdah Culture in Public Policy.” A Research Journal of South Asian Studies 25.2 (2010): 303-310. Print. James, Jeffrey and Graham Pyatt. “Three-Gap Analysis of Structural Adjustment in Pakistan.” UVT. Society for Policy Modeling, 2000. PDF File. Levinsohn, Jim. “The World Bank’s Poverty Reduction Strategy Paper Approach: Good Marketing or Good Policy?” G24. United Nations Conference On Trade And Development, April 2003. Web. 9 July 2013. Molyneux, Maxine. “Mothers at the Service of the New Poverty Agenda.” Journal of social policy and administration 40.4 (2006): 425-49. Molyneux, Maxine. “Change and continuity in social protection in Latin America: Mothers at the service of the State?” May 2007. PDF File. Molyneux, Maxine and Shahra Razavi. Gender Justice, Development and rights. Oxford: Oxford University Press, 2002. Print. Parpart, Jane and Marysia Zalewski. Rethinking the man question: Sex, Gender and Violence in International Relations. London: Zed, 2008. Print. Taj, Farhat. “Policing in Purdah: Women and Women Police Station, Peshawar, NWFP, Pakistan.” UIB. Center for Women’s and Gender Research, May 2004. Web. 9 July 2013. Read More