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HDE News - Special Interest

Poverty Reduction Strategy Papers – Challenges and Responses by WHO’s Department of Health and Development (HDE)

 

1. What are Poverty Reduction Strategy Papers and what do they mean for health? 

The Highly Indebted Poor Countries (HIPC) Debt Initiative was proposed by the World Bank and the IMF and agreed to by governments around the world in 1996 as a coordinated approach among official creditors to bring down debtor countries’ external debt to sustainable levels. However, the challenge to reduce poverty has obliged the whole development community to rethink how to better support countries’ own efforts in poverty reduction. A broad range of actors, including global civil society movements have become increasingly active in re-examining and influencing development and debt strategies. Partly as a result of this, the World Bank Group and IMF, agreed in 1999, to strengthen the Heavily Indebted Poor Countries (HIPC) initiative to provide broader, deeper and faster debt relief to the 41 Heavily Indebted Poor Countries. The enhanced HIPC offers a real opportunity for freeing up government resources for poverty eradication efforts and to focus these on a broad range of interventions that improve health outcomes of poor people.

The expectation was thus made explicit that in return for debt relief, beneficiary countries would commit themselves to policies toward sound economic management as well as poverty reduction. The Initiative puts emphasis on structural and social policy reforms, particularly to enhance the provision of basic health care and education services for the poor, facilitated where needed with additional financing under the HIPC Initiative. Further, governments benefiting from the debt relief are expected to make their plans for poverty reduction explicit through the preparation of a Poverty Reduction Strategy Paper (PRSP).

 

These should be based on the following core principles: 

  • country-driven, involving broad-based participation by civil society and the private sector in all operational steps
  • results-oriented, and focused on outcomes that would benefit the poor;
  • comprehensive in recognizing the multidimensional nature of poverty, but also
  • prioritized so that implementation is feasible, in both fiscal and institutional terms;
  • partnership-oriented, involving coordinated participation of development partners (bilateral, multilateral, and non-governmental);
  • based on a long-term perspective for poverty reduction

As such, the PRSPs are intended to be the national blueprint for social and economic development, focused on progress towards the International Development Goals, especially the commitment to halving the population living in poverty by 2015. They are also intended to be the basis on which external development assistance will be conceptualized and provided.

PRSPs are comprehensive in scope, covering all sectors of the economy and cross-cutting development issues such as governance, security and participation. However, they are intimately related to the health sector, both because of a developing appreciation of the role of ill health in poverty creation, and the corresponding potential of health improvement to support poverty reduction, and consequently the increased willingness of funders to support health improving expenditures. It is expected that a significant share of the proceeds of debt relief will be devoted to the social sectors, including health.

 

2. The challenge of PRSPs for WHO

The advent of PRSPs presents WHO with both an opportunity and a challenge. The opportunity is to push health up the development agenda. The challenge is to develop the capacity within WHO to render a meaningful service to its member states, showing how they can make health a mainspring of development, and make health services more productive for poor people. This will entail overcoming a historic legacy, by which the health sector has focused on the maximisation of health gain, without regard to its distributional impact, and by which WHO has focused on providing technically sound advice on the control of diseases rather than development policy for the health sector. This analysis argues for two lines of approach:

  • Developing the conceptual basis for health's contribution to development, identifying interventions in the health sector and related sectors
  • Developing the capacity in WHO to provide policy relevant advice to member states in formulating and implementing poverty reduction strategies, and specifically their health components

 

3. The role of HSD in PRSPs

One of the objectives of HSD is to support countries in the development of health components of comprehensive long term poverty reduction strategies including formulating PRSPs.

Within this, the main focus will be to build capacity both within and outside the Organization in the regions, to:

  • define and analyse key health elements in a poverty reduction strategy
  • discuss and negotiate health components in the PRSP process with key leaders and stakeholders
  • eveloping the capacity in WHO to provide policy relevant advice to 

HSD will work closely with Regional Offices to develop a strategic approach to capacity building. This means that, while having the flexibility for ‘ad hoc’ responses to urgent needs/demands, HSD will take a long-term view and encourage the designing, resourcing and implementation of poverty reduction strategies in such a way as to allow participating stakeholders to develop critical capacities ‘while doing’. Such a ‘learning while doing’ approach means that a capacity building plan must accompany, and be interwoven into, the entire process of developing and implementing poverty reduction strategies, helping to anticipate problems and challenges and providing appropriate solutions.

 

4. What will HSD do in 2001 ?

  • Given the large number of HIPC countries in the Africa Region, HSD is currently developing a programme jointly with the Department of Healthy Environments and Sustainable Development (DES/AFRO) to assist countries in the preparations of poverty reduction strategies papers. Three sub-regional workshops, one francophone, one anglophone, one lusophone are being organized in close collaboration with World Bank Africa Technical department and UNICEF, to assist country teams in preparing analytical documents to be fed into the PRSP. Participants will include government officials from the Ministries of Health and Finance, WHO country staff including WRs, country health economists and national management professionals, UNICEF staff, and civil society organizations. Close partnership will be sought with other development partners such as the EU and bilateral agencies (DFID, FAC, GTZ). It is hoped that similar joint activities could also be developed with other Regional Offices shortly. HSD will produce technical guidelines to assist countries writing their PRSPs on health sector issues (in collaboration with the World Bank), and on health related issues aimed at reducing poverty and improving the health of the poor. This will be done in consultation with other WHO departments.
  • Participate in World Bank missions to countries, mostly in AFRO, preparing health components of poverty reduction strategies
  • Review with other regional offices, especially SEARO and WPRO, the prospects for joint work on poverty reduction strategies.

 

 

For more information on HSD activities in relation to Poverty Reduction Strategy Papers, or for an information kit regarding PRSPs please contact :

 

Eugenio Villar, coordinator Poverty and Health Policies (POV), HSD
villare@who.int 

or

Margareta Skold, Technical Officer (POV), HSD 
skoldm@who.int

 

 

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