• What are PRSPs?
• What is included in a PRSP
• Does this mean an end to Structural Adjustment?
• Countries covered by PRSPs

What are PRSPs?

PRSPs are national development plans which governments in low-income countries are required to draw up in consultation with civil society in order to receive:

• Debt reduction under the Heavily Indebted Poor Countries Initiative
  
  
• Cheap loans from the IMF and World Bank

What is included in a PRSP ?

The plans should cover all areas of development – poverty reduction, health and education, industry, agriculture, macroeconomics etc.

Although plans are meant to be ‘nationally owned’, they must first be submitted to the IMF and World Bank for their endorsement. Unless a country’s PRSP receives this seal of approval, they will not receive debt reduction. This is a major problem with the PRSP.

According to the IMF and World Bank, their lending programmes to low income countries will be based on Poverty Reduction Strategies. Formerly, the IMF and World Bank’s controversial adjustment programmes were written in Washington. These changes appear to respond to many of the criticisms of adjustment programmes, ie:

• That these policies with their emphasis on free markets and rolling back the state were causing escalating poverty and economic deterioration.
  
  
• That the IMF and World Bank were shaping the social and economic policies of countries with democratically elected governments

An end to structural adjustment?

Does the introduction of the PRSP mark the end of adjustment? Many civil society groups fear that the hidden hand of the IMF and World Bank will still be seen in their countries’ PRSPs. After decades of following IMF and World Bank adjustment programmes, governments are well aware which policies are likely to be endorsed by these bodies. Evidence to date shows that there have been no major shifts in the IMF’s programme. Reports issued by the UN Commission on Human Rights and the World Development Movement found that the policies contained in PRSPs examined showed little change from past IMF programmes.

Countries covered by PRSPs

79 countries fall into the World Bank classification of ‘low income’ ie. those with an income per head of $755. Only an estimated 38 of these are likely to qualify for debt reduction under the Heavily Indebted Poor Countries Initiative but all must adopt a Poverty Reduction Strategy in order to qualify for cheap loans from the IMF and World Bank.

Among the countries which are implementing PRSPs endorsed by the IMF and World Bank are: Bolivia, Mozambique, Tanzania and Uganda