Poverty Reduction Strategy Papers (PRSP)

Last updated September 2008

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.

Rwanda's Poverty Reduction Strategy Paper (PRSP

Rwanda’s second PRSP, now called the Economic Development and Poverty Reduction Strategy (EDPRS), which sets out the country’s objectives, priorities and major policies for the next five years (2008-2012) was completed and adopted by the GoR in November 2007. The strategy provides a medium-term framework for achieving the country’s long term development goals and aspirations as embodied in Rwanda Vision 2020 ( Republic of Rwanda, 2000) and the Millennium Development Goals. Rwanda’s long term development vision articulated in the Rwanda Vision 2020 document is to become a lower middle income economy (US$900 per capita) operating as a knowledge-based servicehub by 2020.

The EDPRS redefines the country’s priorities. Rwanda’s first Poverty Reduction Strategy Paper (PRSP) covered the period 2002 to 2005. It was elaborated in a post-conflict environment where the primary emphasis was on managing a transitional period of rehabilitation and reconstruction. The EDPRS also makes the case for consolidating and extending the decentralisation of public spending when accompanied by robust accountability mechanisms. The EDPRS recognises the key role of the private sector in accelerating growth in order to reduce poverty.

Rwanda ’s recent socio-economic performance together with the lessons from the PRSP leads to four underlying objectives for the EDPRS:

• Increase economic growth by investing in infrastructure; promoting skills development and the service sector; mainstreaming private sector development and modernising agriculture by introducing improved land administration, land use management practices and adopting techniques to reduce soil erosion and enhance soil fertility.
• Slow down population growth through reducing infant mortality; family planning and education outreach programmes, while also improving the quality of health care and schooling, particularly for girls.
• Tackle extreme poverty through improved food security and targeted schemes of job creation and social protection. It is particularly urgent to create new employment opportunities for young persons just entering the labour market.
• Ensure greater efficiency in poverty reduction through better policy implementation which includes enhanced coordination among sectors and between levels of government; sharper prioritisation of activities; better targeting of services for the poor; widespread mobilisation of the private sector; and the more effective use of monitoring and evaluation mechanisms

The EDPRS assigns the highest priority to accelerating growth to create employment and generate exports. The strategy is framed around three strategic flagship programs:

• Flagship one (Growth) targets economy wide improvements in productivity. Its goal is to transform Rwanda’s economy from subsistence agriculture towards increased commercial agriculture, as well as manufacturing and services.
• Flagship two (Vision 2020 Umurenge) focuses on ensuring growth is shared by creating economic opportunities for the poorest Rwandans. It has three components: (i) public works; (ii) credit packages; and (iii) direct supports.
• Flagship three (Governance) seeks to strengthen political and economic governance, and build institutions and capacity of the state. It envisages a wide range of reforms to strengthen public sector institutions and capacity and also includes aspects needed to create an attractive business environment including strengthening commercial justice systems, regulatory and administrative frameworks, and promoting principles of good corporate governance.

In order to achieve the Government’s long term development goals, the EDPRS has a strong focus on growth through improved economic infrastructure and greater productivity of agriculture. The EDPRS also pays particular attention to strengthened program implementation.

For more information, please refer to the Rwanda EDPRS  (PDF) and the World Bank's  PovertyNet website.