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Poverty Reduction Strategy Papers (PRSP)

Revised September 2007

Background of 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.

Madagascar Action Plan (Second Generation Poverty Reduction Strategy)

The government has put in place a bold 5-year development plan—the Madagascar Action Plan (MAP)—which is the second-generation Poverty Reduction Strategy. The MAP envisages accelerated and better coordinated reforms, and outlines the “strategies and actions that will ignite rapid growth, lead to the reduction of poverty, and ensure that the country develops in response to the challenges of globalization and in accordance with the national vision— Madagascar Naturally— and the Millennium Development Goals.”

The MAP was prepared in a participatory way, with workshops organized in all 22 regions that culminated in a national launch workshop in November 2006. The MAP includes eight commitments: (1) responsible governance; (2) connected infrastructure; (3) educational transformation; (4) rural development and a green revolution; (5) health, family planning, and the fight against HIV/AIDS; (6) high growth economy; (7) cherish the environment; and (8) national solidarity. For each commitment, the government identified key challenges, goals and strategies, priority projects and activities, and key monitoring indicators. The MAP identifies six “breakthrough initiatives”—that is, areas requiring immediate attention: public finance reform; significant increase in investment to promote high growth; sowing the seeds of a green revolution; transforming public security; implementing bold new measures for health and family planning; and transforming the judiciary.

The programs for implementing the MAP commitments are being elaborated in greater detail in sector strategies. Some of these strategies are already in place—such as the strategies in rural development, health, primary education, rural water, transport, and HIV/AIDS. The government is working on a risk management and social protection strategy, a financial sector strategy, and is revising the education strategy, including post-primary education, in line with the MAP. Implementation of the MAP is guided by the annual budget laws, which include annual results agreements between the president and cabinet ministers.

The MAP recognizes the importance of public participation, fighting corruption, building leadership capacity and skills, and mobilizing resources (financial, technical, material, and human) to make it a success. Two key new institutions have been put in place to support MAP implementation: the Economic Development Board of Madagascar to facilitate and promote private domestic and foreign investment and the National Leadership Institute of Madagascar to build capacity in government and other sectors of society.

For more information about the MAP, visit the Madagascar government website or refer to the official MAP document (pdf).

 




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