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Poverty Reduction Strategy Papers ( PRSPs ) are documents required by the International Monetary Fund (IMF) and World Bank before a country can be considered for debt relief within the Heavily Indebted Poor Countries (HIPC) initiative. PRSPs are also required before low-income countries can receive aid from most major donors and lenders. The IMF specifies that the PRSP should be formulated according to five core principles. The PRSP should be country-driven, result-oriented, comprehensive, partnership-oriented, and based on a long-term perspective. The PRS process encourages countries to develop a more poverty-focused government and to own their own strategies through developing the plan in close consultation with the population. A comprehensive poverty analysis and wide-ranging participation are vital parts of the PRSP formulation process. There are many challenges to PRS effectiveness, such as state capacity to carry out the established strategy. Criticism of PRSP include aid conditionality, donor influence, and poor fulfillment of the participatory aspect.

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59-550: PRSP may refer to: Poverty Reduction Strategy Paper , documents required by the International Monetary Fund and World Bank Penicillin-resistant Streptococcus pneumoniae, a Streptococcus species resistant to antibiotics Perspecta (defense contractor) , publicly traded IT Service Management Company Topics referred to by the same term [REDACTED] This disambiguation page lists articles associated with

118-825: A donor who wants to see the supported project managed by a person from an industrialized country . The expertise of these employees (or volunteers) may be counterbalanced by several factors, such as ; the cost of foreigners is typically higher, they have no grassroots connections in the country, and local expertise may be undervalued. By the end of 1995, Concern Worldwide (an international anti-poverty NGO) employed 174 foreigners and just over 5,000 local staff in Haiti and ten developing countries in Africa and Asia. On average, employees in NGOs earn 11-12% less compared to employees of for-profit organizations and government workers with

177-610: A hierarchical structure; their headquarters are staffed by professionals who plan projects, create budgets, keep accounts, and report to and communicate with operational fieldworkers on projects. They are most often associated with the delivery of services or environmental issues, emergency relief, and public welfare. Operational NGOs may be subdivided into relief or development organizations, service-delivery or participatory, religious or secular, and public or private. Although operational NGOs may be community-based, many are national or international. The defining activity of an operational NGO

236-536: A March 2000 report on United Nations reform priorities, former UN Secretary-General Kofi Annan favored international humanitarian intervention as the responsibility to protect citizens from ethnic cleansing, genocide, and crimes against humanity. After that report, the Canadian government launched its Responsibility to Protect (R2P) project outlining the issue of humanitarian intervention. The R2P project has wide applications, and among its more controversial has been

295-455: A PRSP should contain a poverty analysis, a prioritization of the programs needed to achieve development objectives, targets and indicators, a plan for keeping track of progress towards goals and evaluating effectiveness of implementation of programs, and a description of the participatory process in preparing the strategy. Even with an approved PRSP, some countries have difficulty following through with intended policies and therefore do not reach

354-611: A Poverty Reduction Strategy Paper as a condition for debt relief through the HIPC initiative and other monetary aid, as do several bilateral donors. PRSPs are intended to help aid recipient countries meet the Millennium Development Goals (MDGs). They detail a country's plan to promote growth and reduce poverty through implementation of specific economic, social and structural policies over a period of three years or longer. PRSPs provide lending organizations, like

413-697: A deep understanding of the issues facing people and to tailor their services to meet the specific needs of each community. NGOs vary by method; some are primarily advocacy groups , and others conduct programs and activities. Oxfam , concerned with poverty alleviation, may provide needy people with the equipment and skills to obtain food and drinking water ; the Forum for Fact-finding Documentation and Advocacy (FFDA) helps provide legal assistance to victims of human-rights abuses. The Afghanistan Information Management Services provide specialized technical products and services to support development activities implemented on

472-500: A lack of resources. They may be contractors or collaborate with government agencies to reduce the cost of public goods. Capacity-building NGOs affect "culture, structure, projects and daily operations". Advocacy and public-education NGOs aim to modify behavior and ideas through communication, crafting messages to promote social, political, or environmental changes (and as news organisations have cut foreign bureaux, many NGOs have begun to expand into news reporting). Movement NGOs mobilize

531-486: Is delivered in a timely and effective manner. NGOs also play a critical role in driving change by advocating for policies and practices that benefit disadvantaged communities. They often work in partnership with other organizations, including government agencies, to address complex challenges that require a collaborative approach. One of the key strengths of NGOs is their ability to work at the grassroots level and to connect with communities directly. This allows them to gain

590-471: Is important because it means donors are only monitoring if the country has made a PRSP and if it was made in a participatory way. However, this might still pose a problem. Since in the past donors were unable to impose content effectively in the client country's policies, it seems unlikely that donors would be able to impose process standards in making a PRSP. It has already been shown that donor's attempts to influence domestic politics have not been successful in

649-466: Is not founded by an international treaty". The role of NGOs and other "major groups" in sustainable development was recognized in Chapter 27 of Agenda 21 . The rise and fall of international NGOs matches contemporary events, waxing in periods of growth and waning in times of crisis. The United Nations gave non-governmental organizations observer status at its assemblies and some meetings. According to

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708-715: Is observed annually on 27 February, was recognised on 17 April 2010 by 12 countries of the IX Baltic Sea NGO Forum at the eighth Summit of the Baltic Sea States in Vilnius , Lithuania. It was internationally recognised on 28 February 2014 in Helsinki , Finland by United Nations Development Programme administrator and former Prime Minister of New Zealand Helen Clark . In the context of NGOs (Non-Governmental Organizations), diplomacy refers to

767-778: Is often used to judge it; less than four percent is considered good. According to the World Association of Non-Governmental Organizations, more than 86 percent should be spent on programs (less than 20 percent on overhead). The Global Fund to Fight AIDS, Tuberculosis and Malaria has guidelines of five to seven percent overhead to receive funding; the World Bank typically allows 37 percent. A high percentage of overhead relative to total expenditures can make it more difficult to generate funds. High overhead costs may also generate public criticism. A sole focus on overhead, however, can be counterproductive. Research published by

826-536: Is the implementation of projects. Advocacy NGOs or campaigning NGOs seek to "achieve large-scale change promoted indirectly through the influence of the political system". They require an active, efficient group of professional members who can keep supporters informed and motivated. Campaigning NGOs must plan and host demonstrations and events which will attract media, their defining activity. Campaigning NGOs often deal with issues related to human rights, women's rights, and children's rights, and their primary purpose

885-474: Is to communicate with NGOs about areas of mutual interest. Department of Defense Directive 3000.05, in 2005, required the US Defense Department to regard stability-enhancing activities as equally important as combat. In compliance with international law , the department has developed a capacity to improve essential services in areas of conflict (such as Iraq ) where customary lead agencies like

944-495: Is to create a more poverty-focused government. Previously, poverty reduction had been largely a marginalized concern within governments of developing countries . Through the PRSP process, the issue of poverty has moved up in priority, creating more comprehensive plans addressing poverty specifically than ever before. There has also been an increase in “pro-poor” spending within the health, education and transportation sectors. Due to

1003-457: Is to cultivate a degree of national consensus, thereby creating a poverty reduction strategy that is more representative of stakeholder's interests. The idea behind this is that the PRS will then be owned by the population and will be sustainable, as it suits the needs and capacities of the country. Ownership of the PRSP by the government and population is a very important goal of PRS. It addresses

1062-703: Is to defend (or promote) a specific cause. Non-governmental organisations need healthy public relations in order to meet their goals, and use sophisticated public-relations campaigns to raise funds and deal with governments. Interest groups may be politically important, influencing social and political outcomes. A code of ethics was established in 2002 by the World Association of Non-Governmental Organizations . Some NGOs rely on paid staff while others are based on volunteers . Although many NGOs use international staff in developing countries, others rely on local employees or volunteers. Foreign staff may satisfy

1121-484: Is transnational coordination by non-official members of the government, including epistemic communities and former policymakers or analysts. It aims to help policymakers and policy analysts reach a common solution through unofficial discussions. Unlike official diplomacy, conducted by government officials, diplomats, and elected leaders, Track II diplomacy involves experts, scientists, professors and other figures who are not part of government affairs. World NGO Day, which

1180-690: The European Convention on the Recognition of the Legal Personality of International Non-Governmental Organisations in Strasbourg in 1986, creating a common legal basis for European NGOs. Article 11 of the European Convention on Human Rights protects the right to associate, which is fundamental for NGOs. The question whether a public project should be owned by an NGO or by the government has been studied in economics using

1239-529: The State Department and USAID have difficulty operating. International Health cultivates collaborative, arm's-length relationships with NGOs, recognizing their independence, expertise, and honest-broker status. International non-governmental organizations date back to at least the late 18th century, and there were an estimated 1,083 NGOs by 1914. International NGOs were important to the anti-slavery and women's suffrage movements, and peaked at

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1298-642: The UN Department of Global Communications , an NGO is "a not-for profit , voluntary citizen's group that is organized on a local, national or international level to address issues in support of the public good". The term NGO is used inconsistently, and is sometimes used synonymously with civil society organization (CSO), which is any association founded by citizens. In some countries, NGOs are known as nonprofit organizations while political parties and trade unions are sometimes considered NGOs as well. NGOs are classified by (1) orientation- entailing

1357-505: The Urban Institute and Stanford University 's Center for Social Innovation have shown that rating agencies create incentives for NGOs to lower (and hide) overhead costs, which may reduce organizational effectiveness by starving organizations of infrastructure to deliver services. An alternative rating system would provide, in addition to financial data, a qualitative evaluation of an organization's transparency and governance: In

1416-992: The Washington Consensus . Twentieth-century globalization increased the importance of NGOs. International treaties and organizations, such as the World Trade Organization , focused on capitalist interests. To counterbalance this trend, NGOs emphasize humanitarian issues , development aid , and sustainable development . An example is the World Social Forum , a rival convention of the World Economic Forum held each January in Davos , Switzerland. The fifth World Social Forum, in Porto Alegre , Brazil in January 2005,

1475-656: The Canadian government's use of R2P to justify its intervention in the coup in Haiti. Large corporations have increased their corporate social responsibility departments to preempt NGO campaigns against corporate practices. Collaboration between corporations and NGOs risks co-option of the weaker partner, typically the NGO. In December 2007, Assistant Secretary of Defense for Health Affairs S. Ward Casscells established an International Health Division of Force Health Protection & Readiness. Part of International Health's mission

1534-563: The Office of Refugee Resettlement uses to help integrate immigrants to America. Government funding sometimes accounts for the vast majority of overall funding for these NGOs, for example Global Refuge received 180 million dollars of its 207 million dollar budget from federal funding. In recent years, government contracts to non-profits have exploded both in number and size. The Budget for the Office of Refugee Resettlement has increased from 1.8 billion in 2018 to 6.3 billion in 2022. Critics point to

1593-438: The PRS outcomes. A large factor of this is the misallocation of budgetary funds that were intended to go towards the PRS. The PRSP process has been scrutinized for increasing aid conditionality even though it was supposedly created to undo the imposition of policy conditions from the outside by increasing country ownership. Some have argued that it is a "process conditionality" not a "content conditionality". This differentiation

1652-506: The UN, an NGO is a private, not-for-profit organization which is independent of government control and is not merely an opposition political party . The rapid development of the non-governmental sector occurred in Western countries as a result of the restructuring of the welfare state . Globalization of that process occurred after the fall of the communist system, and was an important part of

1711-673: The World Bank and the IMF, assurance that aid receiving countries will utilize aid to pursue development outcomes that have been elaborated in the PRSPs and approved by lenders. The IMF has outlined five core principles for the process through which PRSPs are elaborated. First, it should be country-driven , meaning that country ownership of the strategy should be culminated through broad-based participation of civil society. It should also be result-oriented by focusing on outcomes that will benefit

1770-683: The World Economic Forum, may also act as lobby groups for corporations. Unlike international organizations (IOs), which directly interact with sovereign states and governments, NGOs are independent from them. The term as it is used today was first introduced in Article 71 of the newly formed United Nations' Charter in 1945. While there is no fixed or formal definition for what NGOs are, they are generally defined as nonprofit entities that are independent of governmental influence—although they may receive government funding . According to

1829-570: The World NGO Day, we celebrate the key civil society's contribution to public space and their unique ability to give voice to those who would have went [sic] otherwise unheard. European Commission Vice-President Federica Mogherini , commemorating the 2017 World NGO Day in Brussels Service-delivery NGOs provide public goods and services which governments of developing countries are unable to provide due to

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1888-443: The basis for the poverty reduction strategy as it indicates the priority issues. It is important at this stage for the government to initiate civil participation, though to the degree with which this is done varies by country. One of the most important factors of the PRSP is the participatory process through which it is created. It is vital to increasing country ownership of the PRS and promote accountability. The World Bank outlines

1947-438: The demands from the donors to show results, there has been an increase in poverty monitoring through participatory poverty assessments and household surveys. One major function of the PRS is to encourage more participation from the population. The purpose of civil society involvement is to increase the influence of stakeholders in policy creation, program implementation, resource allocation and priority setting. The intent here

2006-456: The fields of humanitarian assistance and poverty alleviation. Funding sources include membership dues, the sale of goods and services, grants from international institutions or national governments, corporate social responsibility (CSR) funds and private donations. Although the term "non-governmental organization" implies independence from governments, many NGOs depend on government funding; one-fourth of Oxfam 's US$ 162 million 1998 income

2065-560: The following participatory levels: Participation has been facilitated by civil society organizations, mainly NGOs . However, since there is no clear framework for consultation with the masses, nor a clear definition of participation, many governments are able to conduct and organize it in whichever way they decide. This often results in governments coordinating selective participation and employing other such tactics aimed at diluting public influence over government objectives. Governments have also been unclear on how much they should incorporate

2124-475: The following ways;: Similar terms include third-sector organization (TSO), nonprofit organization (NPO), voluntary organization (VO), civil society organization (CSO), grassroots organization (GO), social movement organization (SMO), private voluntary organization (PVO), self-help organization (SHO), and non-state actors (NSAs). Numerous variations exist for the NGO acronym, either due to language, region, or specificity. Some Romance languages use

2183-486: The forces that controlled them, whatever the governments concerned might think about the matter." Some NGOs, such as Greenpeace , do not accept funding from governments or intergovernmental organizations. The 1999 budget of the American Association of Retired Persons ( AARP ) was over $ 540 million. In America, government funding of NGOs relating to immigration is common, and is one of the stated methods

2242-824: The ground by other organizations. Management techniques are crucial to project success. The World Bank classifies NGO activity into two general categories: NGOs may also conduct both activities: operational NGOs will use campaigning techniques if they face issues in the field, which could be remedied by policy change, and campaigning NGOs (such as human-rights organizations ) often have programs which assist individual victims for whom they are trying to advocate. Operational NGOs seek to "achieve small-scale change directly through projects", mobilizing financial resources, materials, and volunteers to create local programs. They hold large-scale fundraising events and may apply to governments and organizations for grants or contracts to raise money for projects. Operational NGOs often have

2301-405: The hope is that in developing a PRSP together, a country will gain a more comprehensive understanding of the poverty issues it faces. The PRSP process is also meant to encourage government leadership in implementing their own strategies by allowing them to allocate the aid money themselves in accordance with the strategies they had drawn up in the PRSP. The emphasis on government leadership stems from

2360-435: The ineffectiveness of donor imposition of policy conditions from the outside, a common approach of lending organizations. One way the PRS process encourages ownership is by having governments create their own PRSPs in close consultation with the population. This allows them to take ownership over, and thereby stick to, the strategies they and their population deem necessary to improve conditions in their counties. Additionally,

2419-467: The million-dollar salaries of CEOS and the use of funds for "music therapy" and "pet therapy" as a worrying sign that the money might not be appropriated to help the migrant crisis, but rather as a political move to keep wealthy backers loyal. Overhead is the amount of money spent on running an NGO, rather than on projects. It includes office expenses, salaries, and banking and bookkeeping costs. An NGO's percentage of its overall budget spent on overhead

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2478-500: The number of the country's primary schools and health centers. The United States, by comparison, has approximately 1.5 million NGOs. NGOs further the social goals of their members (or founders): improving the natural environment , encouraging the observance of human rights , improving the welfare of the disadvantaged, or representing a corporate agenda. Their goals cover a wide range of issues. They may fund local NGOs, institutions and projects, and implement projects. NGOs can be in

2537-418: The opinions of the poor into their PRSP, especially while also trying to appease the donors. Furthermore, there is no clear criteria on which to judge whether or not the participatory aspect has been fulfilled in the PRSP. This means that the PRSP might be approved by the IMF and World Bank regardless of the lack of true civil society participation in its making. According to the World Bank's PRS Sourcebook,

2596-455: The party with the larger valuation need not be optimal when the public good is partially excludable, when both NGO and government may be indispensable, or when the NGO and the government have different bargaining powers. Moreover, the investment technology can matter for the optimal ownership structure when there are bargaining frictions, when the parties interact repeatedly or when the parties are asymmetrically informed. Today we celebrate

2655-478: The party with the more important investment task should be owner. Yet, Besley and Ghatak have argued that in the context of public projects the investment technology does not matter. Specifically, even when the government is the key investor, ownership by an NGO is optimal if and only if the NGO has a larger valuation of the project than the government. However, the general validity of this argument has been questioned by follow-up research. In particular, ownership by

2714-403: The past. Furthermore, international financial institutions do in fact evaluate PRSP content, not process alone. A clear definition of what civil participation means has not been laid out by the IMF or World Bank. This creates a problem when evaluating one of the key requirements of the PRSP, which is that it has to be formulated with civil participation. In fact, participation that involves

2773-424: The poor, comprehensive in exploring and understanding the multidimensional nature of poverty, partnership-oriented by involving development partners such as the government, domestic stakeholders, and external donors. Lastly, the development of the PRSP should be based on a long-term perspective geared towards reducing poverty. These core principles are central to the goals of the PRS process. One central goal

2832-579: The population working with the government to develop specific strategies to reduce poverty doesn't exist in any developing country. This seems to suggest that the WB and IMF approve PRSPs regardless of the fulfillment of this condition. NGOs A non-governmental organization (NGO) is an independent, typically nonprofit organization that operates outside government control. NGOs often focus on humanitarian or social issues but can also include clubs and associations offering services to members. Some NGOs, like

2891-1199: The practice of building and maintaining partnerships with other organizations, stakeholders, and governments to achieve common objectives related to social or environmental issues. NGOs often work in complex environments, where multiple stakeholders have different interests and goals. Diplomacy allows NGOs to navigate these complex environments and engage in constructive dialogue with different actors to promote understanding, build consensus, and facilitate cooperation. Effective NGO diplomacy involves building trust, fostering dialogue, and promoting transparency and accountability. NGOs may engage in diplomacy through various means such as including advocacy, lobbying, partnerships, and negotiations. By working collaboratively with other organizations and stakeholders, NGOs can achieve greater impact and reach their goals more effectively. Tanzanian author and academic Issa G. Shivji has criticised NGOs in two essays: "Silences in NGO discourse: The role and future of NGOs in Africa" and "Reflections on NGOs in Tanzania: What we are, what we are not and what we ought to be". Shivji writes that despite

2950-415: The problems that arise when donors establish their own strategy implementation agencies within the client countries, bypassing state agencies and therefore undermining the development of state capacity as well as creating a dependency on aid organizations. The PRSP process begins with an analysis of poverty within the country, taking into account both quantitative and qualitative data. This analysis becomes

3009-502: The public and coordinate large-scale collective activities to advance an activist agenda. Since the end of the Cold War , more NGOs in developed countries have pursued international outreach. By being involved in local and national social resistance, they have influenced domestic policy change in the developing world. Specialized NGOs have forged partnerships, built networks, and found policy niches. Track II diplomacy (or dialogue)

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3068-478: The same number of qualifications . However, in many cases NGOs employees receive more fringe benefits. NGOs are usually funded by donations, but some avoid formal funding and are run by volunteers. NGOs may have charitable status, or may be tax-exempt in recognition of their social purposes. Others may be fronts for political, religious, or other interests. Since the end of World War II , NGOs have had an increased role in international development , particularly in

3127-499: The synonymous abbreviation ONG ; for example: Other acronyms that are typically used to describe non-governmental organizations include: Non-governmental organizations (NGOs) play a vital role in improving the lives of people who have been affected by natural disasters or are facing other challenges. NGOs can act as implementers, catalysts, and partners to provide essential goods and services to those in need. They work to mobilize resources, both financial and human, to ensure that aid

3186-660: The time of the 1932–1934 World Disarmament Conference . The term became popular with the 1945 founding of the United Nations in 1945; Article 71 in Chapter X of its charter stipulated consultative status for organizations which are neither governments nor member states. An international NGO was first defined in resolution 288 (X) of the United Nations Economic and Social Council (ECOSOC) on February 27, 1950, as "any international organization that

3245-510: The title PRSP . If an internal link led you here, you may wish to change the link to point directly to the intended article. Retrieved from " https://en.wikipedia.org/w/index.php?title=PRSP&oldid=966730688 " Category : Disambiguation pages Hidden categories: Short description is different from Wikidata All article disambiguation pages All disambiguation pages Poverty Reduction Strategy Paper The World Bank and IMF require countries to produce

3304-449: The tools of the incomplete contracting theory. According to this theory, not every detail of a relationship between decision makers can be contractually specified. Hence, in the future, the parties will bargain with each other to adapt their relationship to changing circumstances. Ownership matters because it determines the parties' willingness to make non-contractible investments. In the context of private firms, Oliver Hart has shown that

3363-441: The type of activities an NGO undertakes, such as activities involving human rights , consumer protection , environmentalism , health , or development; and (2) level of operation, which indicates the scale at which an organization works: local, regional, national, or international. Russia had about 277,000 NGOs in 2008. India is estimated to have had about 2 million NGOs in 2009 (approximately one per 600 Indians), many more than

3422-488: Was attended by representatives of over 1,000 NGOs. The 1992 Earth Summit in Rio de Janeiro , attended by about 2,400 representatives, was the first to demonstrate the power of international NGOs in environmental issues and sustainable development. Transnational NGO networking has become extensive. Although NGOs are subject to national laws and practices, four main groups may be found worldwide: The Council of Europe drafted

3481-648: Was donated by the British government and the EU, and World Vision United States collected $ 55 million worth of goods in 1998 from the American government. Several EU grants provide funds accessible to NGOs. Government funding of NGOs is controversial, since "the whole point of humanitarian intervention was precise that NGOs and civil society had both a right and an obligation to respond with acts of aid and solidarity to people in need or being subjected to repression or want by

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