1.4 How does the PRS process work?

A PRSP process consists of three main phases: formulation, implementation and monitoring/ evaluation. PRSP is an ongoing learning process, meaning that all stakeholders involved should critically reflect on their work and make efforts to improve it at all stages.

Formulation

The poverty analysis is the starting point of the PRS process, and is designed to help understand the specific causes and consequences of poverty within the country concerned. The analysis gathers quantitative data (e.g. the number of people living in poverty) as well as qualitative data (e.g. the feelings and individual views of persons affected). The poverty analysis indicates the priority issues and forms the basis for the formulation of the PRSP strategy. This takes several steps, during which the different stakeholders discuss the various drafts of the PRSP until they reach consensus. In this process of formulating the PRSP, it is essential that the government organises participatory events enabling an exchange between all stakeholders. This usually requires a substantial amount of time: the establishment of a full PRSP takes on average 24 months. Most countries therefore formulate an Interim PRSP (I-PRSP) before the full version, in order to gain access to debt relief and credits as soon as possible. However, the drawback of an I-PRSP is that the participation of the civil society is generally limited. The government then sends the finalised PRSP to the World Bank and the IMF for assessment and approval of the strategy.

Implementation

After the proposed activities have been authorised, the implementation phase starts. A comprehensive PRSP will already include the different responsibilities and a budget for the implementation of activities. The government is supposed to align its annual national budget according to the PRSP, and the ministries are expected to plan and facilitate the required actions. In some countries, civil society organisations and international stakeholders are also strongly involved in the implementation phase, which lasts three to five years.

Monitoring and evaluation

The monitoring and evaluation process starts parallel to the implementation. It allows the actions and measures taken to be monitored and provides an indication of their efficiency regarding poverty reduction. The government has to submit regular progress reports (approximately once a year) to the World Bank and the IMF. In the last year of the implementation phase, all stakeholders again jointly evaluate the whole strategy in order to revise the PRS where necessary. The new PRS is based on this revision, and effectively restarts the process. Experience shows that revising the PRS entails considerable work, as it normally starts during the implementation and monitoring of actions stage of the original PRS. The revision itself takes approximately one to two years.

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