Poverty Reduction Strategy Papers

Poverty Reduction Strategy Papers (PRSP) describe a country's macroeconomic, structural, and social policies and programs to promote growth and reduce poverty, as well as associated external financing needs. PRSPs are prepared by governments through a participatory process that involves civil society and development partners, including the World Bank and the International Monetary Fund (IMF).

Poverty Reduction Strategy Papers provide the basis for World Bank and IMF assistance as well as debt relief under the HIPC (Heavily Indebted Poor Countries) Initiative. PRSPs should be country-driven, comprehensive, partnership-oriented, and participatory. A country only needs to write a PRSP every three years; however, changes can be made to the content of a PRSP using an Annual Progress Report.  For more information, visit the World Bank Povertynet website.

Poverty Reduction Strategy Paper for Kenya

The Executive Boards of the IMF and the World Bank concluded in August 2000 that the government's Interim Poverty Reduction Strategy Paper (I-PRSP)  (433 KB) provided a sound basis for developing a fully participatory PRSP and for World Bank and IMF concessional assistance.  The government produced a draft PRSP in November 2002, which was not submitted formally to the Bank and the Fund on account of the December 2002 elections.  The new government of Kenya developed its own Economic Recovery Strategy for Wealth and Employment Creation (ERS), drawing heavily on the PRSP but also reflecting its own priorities.

The authorities have prepared a Preparation Status Report   (591 KB)  on the ERS for presentation to the Boards of the Bank and the Fund in the context of Fund Executive Board consideration of the proposed PRGF program.  The report lays out the main activties undertaken to date in developing the ERS and its links to the earlier draft PRSP.  It specifies the additional steps being taken to complete the ERS in coordination with civil society and Kenay's development partners, and provides a timetable for completing the ERS.  The report also describes hwo the evolving strategy has addressed the issues raised by the Fund and the World Bank in the Joint Staff Assessment of the I-PRSP.  The staffs believe that the broad areas of work listed in the ERS preparation status report are appropriate and respond to the issues raised in the JSA of the I-PRSP.

For more information, visit the Kenya PRSP site.