Poverty Reduction Strategy Initiative
Poverty remains a major challenge for millions of people around the world, who live below the poverty line. As such, governments of the world grapple with alleviating the lives of people through various programs and initiatives. These efforts have seen international and global institutions drum up support and join hands in combating the scourge. In this essay, we shall discuss poverty reduction strategy initiative, including its contribution towards poverty reduction.
The World Bank and International Monetary Fund established the Poverty Reduction Strategy Initiative in 1999 with the sole aim of enhancing public action towards poverty reduction in the world. The program largely focuses on promoting the entire process in every country worldwide through partnership and long-term efforts towards poverty reduction. Through this partnership, developing countries, which are mostly low-income earners, complete a PRS paper to receive World Bank financial support continuously. These initiatives also act as framework for external partners, which offer aid.
It is important to note that impact and success of Poverty Reduction Strategy Initiative varies from country to country, depending on a wide range of factors. For example, counties’ public sector capacity widely influences the success of this initiative. Moreover, the relationship between individual government’s relationships with the partner determines feasibility of the initiative. The last effect is the relationship with the donor, which has to be smooth in order to receive constant support for development and reduce poverty in the end.
In understanding the success of Poverty Reduction Strategy Initiative, it is worth noting that countries, which had strong leadership and management systems in place at the launch of the initiative have benefited more than those that developed these structures after the establishment in 1999. The initiative however has not been of help to countries with a weak public sector capacity. Another point to note is that this initiative has not been tailored to suit capabilities and policies found in low-income earning countries. This makes it hard for such economies to experience the full potential of Poverty Reduction Strategy Initiative. In essence, Poverty Reduction Strategy Initiative give a lot of emphasis on public expenditure with little attention on economic growth and other poverty reduction actions, which would favor most developing countries.
Poverty Reduction Strategy Initiative is an improvement of Policy Framework Papers, which were adopted in 1990s. However, these initiatives are still in progress owing to the fact that world’s economic challenges are dynamic and change over time. So far, Poverty Reduction Strategy Initiative has not realized its full potential in dealing with poverty problems, especially in developing countries. For this dream, which was envisaged by the pioneers of the idea to come true, the World Bank must offer it support. In this regard, World Bank should focus on customization of needs for various countries worldwide instead of having uniform requirements, which hamper success. Additionally, Poverty Reduction Strategy Initiative should adopt a wide range of options, which offer chance for economic growth. This is necessary since over the years, the initiative focuses on public expenditure rather than ideas that enhance countries’ economic growth. Accountability for countries and partners is equally important in ensuring that there is transparency in supporting developing nations of the world.
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