Fifth Poverty Reduction Support Credit (PRSC5)

closed

Closed

The Fifth Poverty Reduction Support Credit (PRSC-5) is the third in a second PRSC series designed to assist the Government of Mozambique (GoM) to implement key policy actions outlined in its 2005-2009 second action plan for the reduction of absolute poverty (known as PARPA II by its Portuguese acronym) and in the performance assessment framework agreed by the government and the 19 external partners that provide General Budget Support (GBS) to GoM. In 2008 the government announced that it will extend the PARPA II by one year to include 2010, thereby strengthening sustainability and continuity with the next strategic document. PARPA II is mainly focused on shared growth and on the need for decentralization. Within this context, PRSC-5 is expected to help the GoM in (a) the consolidation and deepening of the institutional reforms in the area of macroeconomic management; (b) reforms in governance by supporting decentralization to enhance public investments and service delivery at the provincial and district level, and by supporting public sector reform; and (c) economic development by removing constraints to growth, such as infrastructure, and promoting agricultural growth. The PRSC-5 also supports the implementation of the government policy response to the higher global food and fuel prices. The operation will help the government to maintain macroeconomic stability while it continues to pursue a reform agenda that cannot be fully financed from domestic sources. The reforms should enable Mozambique to make further progress in reducing absolute poverty, improving the delivery of services and achieving the Millennium Development Goals (MDGs). The alignment with the general budget support programs of 18 other donors and a joint focus on the priorities set out by the government in its comprehensive poverty reduction strategy, and on a common set of indicators to measure progress, should help improve the resource flow and improve aid effectiveness, thereby enhancing the chances of progress towards the MDGs.

FY17 - Agriculture, Fishing and Forestry,FY17 - Industry, Trade and Services,FY17 - Public Administration,FY17 - Social Protection

World Bank Group

Project

Road, Water Supply and Storage, Raw Materials, Consumer Products, Government