Poverty Reduction Support Credit (6)

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The Sixth Poverty Reduction Support Credit (PRSC-6) Project is part of a series of operations supporting the implementation of the Poverty Reduction Strategy Paper (PRSP) for the period 2004-2006. The PRSP has four strategic pillars: 1) accelerating broad-based growth; 2) promoting access to social services; 3) increasing employment and income-generating activities for the poor; and, 4) promoting good governance. The PRSC series supports the PRSP implementation under three components consistent with the four pillars of the PRSP: a) growth and employment creation; b) human resource development; and, c) good governance. Under the growth and employment creation component, the PRSC-6 supports institutional reforms that will increase private sector participation in the cotton, telecommunication, and energy sectors, accelerating growth through higher investment and improved productivity and competitiveness. The second component includes policies to lower the cost of services and improve access and quality in the education, health, social protection, and water sectors. The third component encompasses policy measures to strengthen budget formulation, execution, procurement, and control. This component also supports the strengthening of public sector performance, greater decentralization, and better environmental management. Project risks arise from the country's weak institutional capacity, adverse developments in commodity prices and exchange rates, and regional instability.