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This evaluate examines the relevance and effectiveness of Poverty aid help credit (PRSCs), brought by way of the financial institution in early 2001 to aid complete progress, increase social stipulations, and decrease poverty in IDA nations. PRSCs have been meant to permit higher country-ownership, supply extra predictable annual aid, express extra versatile conditionality, and advance price range strategies in a results-based framework. via September 2009, the financial institution had authorized ninety nine PRSCs totaling a few $7.5 billion and representing 38% percentage of IDA coverage dependent lending. The assessment reveals that during phrases of procedure, PRSCs have been potent in easing conditionality, expanding state possession and relief predictability, stimulating discussion among principal and sectoral ministries, and enhancing donor harmonization. when it comes to content material, PRSCs succeeded in emphasizing public zone administration and pro-poor carrier supply. but when it comes to effects, it truly is tough to distinguish development and poverty results in international locations with PRSCs from different greater acting IDA nations. there's scope for extra simplifying the language of conditionality and underpinning PRSCs with larger pro-poor progress diagnostics. PRSCs may also advance their effects frameworks and restrict area coverage content material in multi-sector DPLs to high-level or cross-cutting matters. at the present time, financial institution coverage has subsumed PRSCs below the broader mantle of improvement coverage Lending and the reason for a separate ‘brand identify’ even if modifications linger from the previous. for the reason that PRSCs and different policy-based lending have steadily converged in layout, ultimate adjustments in comparison to different improvement coverage Loans will be truly spelled out, or the separate PRSC model identify can be phased out.

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The evaluation seeks to (i) compare the performance of PRSC beneficiaries before and after engagement in the program, as well as (ii) relative to eligible IDA countries that have not benefited from PRSCs. A further filter used is to compare PRSC countries with other betterperforming IDA countries. The evaluation compares pre- and post-PRSC performance, and compares PRSC to nonPRSC countries, including better performers. 10 This evaluation is based on five major sources of information: (i) a comprehensive desk review of the PRSC portfolio, including country documents, analytic work, and associated IEG evaluative material; (ii) seven case studies of countries, which cover 31 PRSC operations, 8 completed PRSC series, another 4 ongoing series, and 33 percent of total disbursements for PRSCs over the period fiscal 2001–08; (iii) three IEG surveys (annexes 5–7)— the first focusing on task team leaders (with responses from 40 team leaders in all 27 PRSC countries), the second including 76 sector specialists from six sectors who served as PRSC team members, and the third covering senior government officials, in 24 out of 27 PRSC countries, who were engaged with PRSCs as key counterparts; (iv) relevant internal and external databases; and (v) an extensive review of the literature.

5 percent in 2008. 4). This is despite some pro- in many countries. 1. PRSCs: Shares in Policy-Based and Total Lending (FY01–08) PRSCs and Policy-Based Lending Shares in Value of Disbursements (%) PRSCs and All IDA and IBRD Shares in Value of Disbursements (%) 70 18 16 60 14 50 percent percent 12 40 30 10 6 5 20 4 10 2 0 0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 PRSCs/All IDA policy-based loans PRSCs/All policy-based loans (IBRD + IDA) FY08 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 PRSCs/All IDA loans PRSCs/All Bank loans (IDA + IBRD) Source: World Bank data.

8 percent in the former period). 5 percent in the earlier period). 9 percent earlier). 2 percent). PRSCs over fiscal 2001–04 looked very different from other policy-based IDA credits over the period fiscal 1995–2004. 1. 8% Public sector 0 10 Legal conditions and benchmarks 20 30 Legal conditions 40 50 60 Program benchmarks Source: World Bank database. Thematic group and sector data are reclassified on the basis of the 10 sectors above, to clarify database classifications, reflect sectors of PRSC interest, and to more accurately represent the sectoral content of loans.

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