Poverty Reduction Strategy Paper

Contributed by: Vanja Mikulic and Irena Milatovic, Montenegro National VAW Monitors

In September 1999, after the call of the Leaders of G7 country creditors, the World Bank (WB) and the International Monetary Fund (IMF) launched a program »Poverty Reduction Strategy« (Poverty Reduction Strategy Paper - PRSP), quite a new approach to support heavily indebted and the least developed countries.

 

This strategy reflects a National Development Plan, defining the achievable goals and their impacts on poverty alleviation, comprising social, macroeconomic and structural components and identifying instruments to measure progress toward these goals.

WB and IMF launched a new approach in their programs for providing assistance to poor and undeveloped countries. PRS Paper is a requirement for approximately 70 low income countries, needed for the provision of debt relief or new concessional loans. The strategy presents national development vision of the country, and all potential donors, international institutions and international financial institutions are expected to coordinate their assistance and programs of creditting toward the development of this document.

This strategy appeared to be a favorable model that could be a concrete instrument to make the linkage among debt decreasing, combating poverty and participation of civil society into pro-poor policy development. With such a comprehensive, precise and internationally recognizable development document, the countries become the owners of their development, with clearly specified vision of their own future and systematic plan for goals achievement.

Consistent with the aforesaid, the Republic of Montenegro has been requested by WB and IMF to develop this very important and strategic document.

More information on Poverty Reduction Strategy Paper find at: 

http://planipolis.iiep.unesco.org/upload/Serbia/Serbia_Montenegro_PRSP.pdf