Poverty Reduction Strategy Papers (PRSP)

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, please refer to the World Bank Povertynet website.

Status of PRSP for Liberia

As of June 2004, Liberia did not have a Poverty Reduction Strategy Paper. However, in March 2004, the World Bank’s Board of Executive Directors approved its engagement in key activities to assist this country in making a successful transition to peace after decades of violent conflict. The Bank will assist Liberia more actively in its transitional post-conflict period, while a plan is developed to clear its substantial external arrears.

The interim Poverty Reduction Strategy (iPRSP) was completed in December 2006 and presented to the donor community at the Liberia Partner’s Forum in February 2007. Four main sectors of intervention, or “pillars” are identified in the iPRSP: (I) Security; (II) Economic Revitalization; (III) Governance and the Rule of Law; and (IV) Infrastructure and Basic Services. The full PRSP process was launched in August 2007 and is expected to be finished in the first half of 2008, with implementation scheduled for July 2008, synchronized with the FY08/09 budget cycle.

Governance and Economic Management Assistance Program (GEMAP)

Over the last 25 years Liberia experienced a decline in the quality of public management of the nation’s finances, illustrated in European Commission financed audits of a number of Liberia’s State Owned Enterprises (SOEs). As a result, the World Bank together with its development partners adopted a more robust approach to economic governance in Liberia. Initially signed by the post-war National Transitional Government of Liberia (NTGL), the Governance and Economic Management Assistance Program (GEMAP) has been embraced by the new administration of the democratically elected President Ellen Johnson Sirleaf. GEMAP was developed to help improve the financial and fiscal administration, transparency and accountability, clear mandates of the Johnson Sirleaf Government. The main components of GEMAP are:

• Financial Management and Accountability
• Improving Budgeting and Expenditure Management
• Improving Procurement Practices and Granting of Concessions
• Establishing Effective Processes to Control Corruption
• Supporting Key Institutions
• Capacity Building

In addition to being part of the GEMAP steering committee and technical teams, the bodies governing GEMAP, the Bank also provides technical expertise. In line with national and country program priorities, the Bank provides technical assistance and training in procurement and financial management reform, the implementation of the Liberia Extractive Industries Transparency Initiative (LEITI), as well as the establishment of a Resource Management Unit (RMU) at the Ministry of Finance, and support for a GEMAP-backed management contracts for the National Port Authority (NPA).

For more information, please refer to the GEMAP Agreement document (pdf) or the GEMAP website: http://www.gemapliberia.org/