POVERTY REDUCTION SUPPORT CREDIT III

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The proposed credit for Cape Verde poverty reduction support project will continue IDA support for the implementation of Cape Verde's growth and poverty reduction strategy (GPRSP). This one-tranche operation will be the third in a series of three annual poverty reduction support credits (PRSCs) and will further narrow the gap between the cost of implementing key elements of the GPRSP and resources available from the government's domestic revenues and other donor support. The policy dialogue and results-based framework under this PRSC focus on the following pillars of the GPRSP: (i) promote good governance; (ii) develop human capital in the areas of education and health; (iii) improve the effectiveness and sustainability of the social protection system, and (iv) monitoring and evaluation. In terms of benefits, the value added of PRSC-3 lies in both the nature of the instrument and the results that are expected: (i) improved functioning of national budget systems; (ii) reduced transaction costs and distortions due to international assistance; (iii) better linkages between sectors and cross-cutting issues; (iv) improved service delivery for the poor; and (v) improved well-being of the population.