Minding the Gaps: Integrating Poverty Reduction Strategies and Budgets for Domestic Accountability

Books or book chapters
January 2008
Vera Wilhelm and Phillip Krause (eds.), with Tim Williamson and Paolo de Renzio

The Poverty Reduction Strategy (PRS) approach aims to enhance account-
ability by promoting the participation of domestic stakeholders in the
formulation of clear and realistic development goals. Institutions for moni-
toring and evaluation, including annual progress reports, are designed to
trigger learning and improved performance.
Links between the PRS and budget, whether at the formulation, execution, or reporting stage, have been considered integral to the successful implementation of the PRS for some time. These links are also increasingly
recognized as vital for enhanced domestic accountability.

This study offers practical insights for donors and national governments on how to strengthen the links between PRSs and national budgets, with a view to improving domestic accountability. It aims to answer two principal questions:

  • What challenges have arisen in countries where efforts have been made to integrate the PRS with the budget?
  • What lessons have been generated by these experiences and what are
  • the potential entry points for reforms to strengthen PRS-budget links?
To answer these questions, the study reviews a series of case studies that document the status of budget and PRS integration in a sample of nine low-income countries—Albania, Burkina Faso, Madagascar, Malawi, Mali, Mozambique, Rwanda, Tanzania, and Uganda—and the links among policies, budgets, and service delivery in four higher-income countries that are internationally considered to be successful reformers in public financial management—Australia, Chile, the Republic of Korea, and South Africa.

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