Experts criticise PRSP

January 21, 2004
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Participants at an interaction programme Tuesday questioned if the Poverty Reduction Strategy Paper (PRSP) prepared by the government is actually a plan for poverty reduction or merely a document for attracting foreign loans and grants.

They stated that the country’s dependence on international institutions for finances to fund its development activities is the likely reason why the PRSP has become more of a loan document, especially for the World Bank and the International Monetary Fund (IMF).

The participants were speaking on Nepal’s PRSP during the occasion of ninth monthly forum on Globalisation and WTO, organised jointly by South Asia Watch on Trade, Economics and Environment (SAWTEE) and ActionAid Nepal.

The objectives of the programme were to highlight the structure and features of the PRSP and to appraise the participants of the progress made in the implementation of the PRSP, apart from analysing whether the document is to attract loans or for genuine development.

Highlighting the structure of the PRSP, Keshav Bhattarai, Joint Secretary at the National Planning Commission, stated that the PRSP is in essence the Tenth Plan, which was formulated through extensive consultation and community participation.

He further stated that while the PRSP is a roadmap for future course of action, the document in itself is also meant to form a basis for assistance from international lending institutions, including the Brettenwoods institutions, namely the IMF and WB.

Likewise, making her presentation, Shizu Upadhyay, Theme Leader, ActionAid Nepal, questioned if the areas in which the government should have been open during the formulation of the PRSP were really open.

“Through some level of consultation was seen during the formulation of the PRSP, yet the final policy level decisions were taken by only a few hands. This gives room to doubt if the concerns of the grassroots levels were really incorporated,” she said.

Swarnim Wagle, an expert with PRSP issues who is presently working as Research Officer at Asia Trade Initiative, Hanoi, Vietnam, making his presentation from the inter-governmental perspective, traced the evolution of the PRSP in the WB.

Conceding the inherent weaknesses of the then Poverty Framework Paper, the predecessor of PRSP, he said that PRSP is built on a refined system where a lot of country ownership exists.

However, he added that the community consultation process has not worked in all countries, and that some countries – say, Bolivia, Nicaragua and Mauritania – have gone to the extent of enacting laws making it mandatory for government agencies to consult during the formulation of policies and plans.

Participants strongly suggested that such a law in Nepal may also be necessary to ensure that formulation of plans and budgets are actually done in a participatory manner.