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The PRSP Approach and the Illusion of Improved Aid Effectiveness: Lessons from Bolivia, Honduras and Nicaragua

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  • Geske Dijkstra

Abstract

Since 1999, poor countries that want to qualify for concessionary IMF loans and debt relief must elaborate and implement Poverty Reduction Strategy Papers. Donors claim that the PRSP approach will increase aid effectiveness since PRSPs will enhance broad country ownership and lead to better 'partnership' with donors, implying more donor co-ordination under government leadership. By examining the experiences of Bolivia, Honduras and Nicaragua, this article finds that the results are disappointing. The article also shows that, by emphasising rational planning and ignoring politics, the PRSP approach has unintended and sometimes harmful consequences. This leads to recommendations for changes of the approach. Copyright Overseas Development Institute, 2005.

Suggested Citation

  • Geske Dijkstra, 2005. "The PRSP Approach and the Illusion of Improved Aid Effectiveness: Lessons from Bolivia, Honduras and Nicaragua," Development Policy Review, Overseas Development Institute, vol. 23(4), pages 443-464, July.
  • Handle: RePEc:bla:devpol:v:23:y:2005:i:4:p:443-464
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    Cited by:

    1. Cassimon, Danny & Vaessen, Jos, 2007. "Theory, practice and potential of debt for development swaps in the Asian and Pacific region," Economic Systems, Elsevier, vol. 31(1), pages 12-34, March.
    2. repec:eee:forpol:v:83:y:2017:i:c:p:181-190 is not listed on IDEAS
    3. David Hulme & James Scott, 2010. "The Political Economy of the MDGs: Retrospect and Prospect for the World's Biggest Promise," Global Development Institute Working Paper Series 11010, GDI, The University of Manchester.
    4. Eggen, Andrea & Bezemer, Dirk J, 2007. "Do Poverty Reduction Strategies Help Achieve The Millennium Development Goals?," MPRA Paper 7030, University Library of Munich, Germany.
    5. Stephen Brown, 2016. "Putting Paris into practice: Foreign aid, national ownership, and donor alignment in Mali and Ghana," WIDER Working Paper Series 145, World Institute for Development Economic Research (UNU-WIDER).

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