July 17, 2024
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Development and Poverty Reduction

Reconciling the financing needs for national development and poverty reduction strategies and debt sustainability is a crucial aim of debt strategy analysis.  In particular it is useful to look not only at the baseline spending scenario but also to consider alternative optimistic or pessimistic cases and their implications for resource mobilisation and debt sustainability.  

The methodology designed by DFI for analysing and projecting poverty spending strategies can be easily applied to development strategies.

For a practical guide on how to do this, please see Modelling Poverty Reduction.

To help governments prepare baseline and alternative scenarios, DFI has developed detailed training materials and manuals, conducted research and analysis and provides advisory services.

Latest work DFI carried out in this area:

18 June 2015 - Are PRSPs in Sub-Saharan Africa as Effective as Expected?

IMFA new IMF publication takes stock of poverty reduction strategies implemented in Sub-Saharan Africa, in the context of Poverty Reduction Strategy Papers (PRSP). This paper finds that there is no conclusive evidence that its implementation has played a role in reducing poverty and increasing the income share of the poor. In fact, the research reveals that despite PRSP countries’ post-crisis economic resilience, the poverty headcount has not reduced and growth has more than proportionately benefited the top quintile during PRSP implementation.



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