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Zambia: Poverty Reduction Strategy Second Annual Progress Report
Joint Staff Advisory Note


IMF Country Report No. 05/195

International Monetary Fund (IMF)

June 2005

SARPN acknowledges the IMF website as the source of this report: www.imf.org
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Overview

  1. The second Poverty Reduction Strategy Paper (PRSP) Implementation Progress Report and its Addendum1 of the Government of the Republic of Zambia (GRZ) presents a complete review of government’s implementation of the PRSP for the period July 2003–December 2004. This Second Progress Report and its Addendum (henceforth the Report) describe the results of implementation and monitoring of the PRSP presented to the Boards of the IMF and IDA on May 29, 2002 and July 19, 2002, respectively. The Report incorporates inputs from civil society and the donor community. In addition, the Report also includes a “Supplement on Policies and Objectives for 2005” prepared by the Ministry of Finance and National Planning in February 2005.”


  2. As articulated in the Report, the government’s strategy to reduce poverty focuses on promoting economic growth through macroeconomic stabilization and diversification and improving the quality of service delivery, while addressing crosscutting issues of governance, HIV/AIDS, gender, and the environment. The Report confirms that the PRSP strategy remains valid and therefore is a fundamental point of reference for the dialogue between government, civil society, and the donor community.


  3. The Report is a product of a consultative process involving a wide variety of stakeholders. Efforts were made to strengthen stakeholder participation in evaluating the implementation of Poverty Reducing Programs (PRPs). The Sectoral Advisory Groups (SAGs), each consisting of representatives of civil society, private sector, academicians, and donor community, have become an important voice in reviewing PRSP implementation and the implementation of its monitoring framework. The SAGs meet individually on a monthly basis and jointly during two annual national conferences to discuss progress in implementing the PRSP and the Transitional National Development Plan (TNDP).


  4. Government has indicated that it plans to align the PRSP processes further with its existing national planning and reporting processes. The time period for the PRSP (2002-04) was extended by one year to overlap with the TNDP.2 Staffs share the authorities’ and stakeholders’ view that the policies and targets described in the PRSP remain valid. The next PRSP/TNDP is expected to cover a 5-year period and outline the development plans for Zambia from 2006 onwards. The reporting period of the annual progress report is currently not in line with Zambia’s financial year. This has complicated comprehensive evaluations of planned and actual inputs, outputs, and outcomes, as much of the data is reported by calendar year. To address this problem, Zambia’s annual Economic Report, which describes economic progress over the previous financial year, will be expanded to become the main vehicle to report on PRSP implementation. Staffs urge the authorities to assume a forward-looking approach in the preparation of the Economic Report, in particular in the section addressing progress on PRSP implementation.


  5. The Joint Staff Advisory Note (JSAN) on the Report provides staffs’ advice on priorities for advancing the PRSP’s implementation. This note is organized into three sections. Section II highlights progress in implementing the PRSP and provides suggestions for strengthening its implementation. The concluding section addresses risks associated with implementation and recommends issues for discussion by the Boards.

Footnotes:
  1. Republic of Zambia (December 2004), Zambia Second PRSP Implementation Progress Report July 2003-June 2004, Ministry of Finance and National Planning; and Ministry of Finance and National Planning (February 2005), Addendum to Zambia’s Second PRSP Implementation Progress Report July 2004-December 2004.


  2. The TNDP for the period 2002-2005, prepared when the current government took office in 2002, encompasses all the areas discussed in the PRSP, but also includes other areas such as the Judiciary, Law and Order, and Defense and Security.



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