Poverty Reduction Support Credit (2)

closed

The Second Poverty Reduction Support Credit Project, is an integral part of the Country Assistance Strategy (CAS), to support the implementation of the Poverty Reduction Strategy Paper (PRSP), and, the second in a series of three planned operations for FY02-03. The project is designed to help the Government achieve better outcomes in public resource management by: 1) strengthening program budgets, linking allocations to specific sector objectives, strategies, and action plans; 2) improving service delivery in education, health, and rural development; and, 3) strengthening the fiduciary framework, to promote accountability, and transparency in the use of public funds, including external aid. Nonetheless, the main risks to this operation, and its reform program, come from political instability, vested interests, and fiduciary and institutional issues. However, to minimize those risks, reforms are being implemented in a sensitive context, and in participation with opposition parties in the political dialogue; and, notwithstanding vested interests, and fiduciary risks regarding the use of public funds, such should be mitigated to a substantial extent by the design, and content of the project, given that the supported, main reform measures, will have been taken prior to Board presentation, and, by the fact that substantial technical support will be provided.