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Poverty Reduction and Human Rights

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					Poverty Reduction and Human Rights:
     THE Development Challenge


                  Judith Edstrom,
   Sector Manager, Social Development, World Bank

 Inter-Agency Workshop on Human Rights Approaches
                   May 6, 2003
                Outline

• Poverty and Human Rights
• Poverty and PRS&P
• PRS&P and Human Rights
  Poverty and Human Rights
From WDR 1990
• Labor-intensive growth
• Broad provision of social services

To WDR 2000/2001
• Opportunity
• Empowerment
• Security
             Root causes of poverty

   • Lack of income and assets to attain
     basic necessities
   • Voiceless ness and powerlessness
   • Vulnerability to adverse shocks




Poverty and Human Rights
    Opportunity as human rights
     • Encouraging effective private investment
     • Expanding into international markets
     • Building assets of poor people
     • Addressing asset inequalities across
       gender, ethnic, racial and social divides
     • Getting infrastructure and knowledge to
       poor areas—rural and urban
                                       WDR 2000

Poverty and Human Rights
              Empowerment as human
                     rights
     • Laying political and legal basis for inclusive
       development
     • Creating public administrations that foster
       growth and equity
     • Promoting inclusive decentralization and
       community development
     • Promoting gender equity
     • Tackling social barriers
     • Supporting poor peoples’ social capital
                                                 WDR 2000

Poverty and Human Rights
        Security as human rights
   • Formulating modular approach to helping
     poor people manage risk
   • Development national programs to prevent,
     prepare for and respond to macro risks
   • Designing national systems of social risk
     management that are also pro-growth
   • Addressing civil conflict
   • Tackling the HIV/AIDS epidemic
                                     WDR 2000

Poverty and Human Rights
               Conceptual shifts in
               addressing poverty
                   reduction
   • Needs-based approach to rights-
     based approach
   • Welfare economics to importance of
     agency
   • Equality/inequality: principles and
     analysis

Poverty and Human Rights
          Alignment of poverty
       reduction and human rights
―The principles of equality of value of the individual and
  of opportunity ..lead naturally to an approach to
  development in terms of building an environment
  which provides both for growth of economic
  opportunity and for the participation of all people,
  particularly poor people, in the economy and society.
  This …is essentially the strategic approach of the
  World Bank in its fight against poverty.‖
  Nicholas Stern, Chief Economist, World, Bank, ―Development and Human Rights,‖

  LSE Workshop, Washington, DC, March 5, 2003

 Poverty and Human Rights
• Poverty and Human Rights
• Poverty and PRS&P
• PRS&P and Human Rights
                PRSPs: origins and core
                      principles
  Little progress in
reducing poverty and
                            PRSP Core principles:
inequality.
  Pressure to              •   Country-driven
heighten poverty
impact of development       •   Participatory
resources and to show
results.                    •   Results oriented
  Criticism that
development decisions       •   Comprehensive in scope
are made by a few,
with little consultation.   •   Partnership-oriented
  Intellectual under-
pinning: WDR on             •   Long term in perspective
empowerment,
vulnerability, security


Poverty and PRS&P
            Substance of a PRSP
 1. Poverty Diagnostics:
     Understand the multiple dimensions of poverty
       and their determinants

 2. Policy Actions:
     Choose priority actions to reduce poverty, in the
        short and longer term

 3. Indicators and Monitoring:
     Set targets and indicators of progress,
       systematically monitor results and feedback
       into decision making
Poverty and PRS&P
                    Encouraging early
                       experiences
• Country ownership as the guiding
  principle
     – growing sense of country ownership
• Poverty reduction has gained a more
  prominent place in policy discussions
• Openness and transparency of the PRS
  process is important
     – More open dialogue within governments and with
       civil society
• Donor community embraces PRS
  principles
Poverty and PRS&P
     Key challenges OF PRS&P
    1. Strengthen & institutionalize participation
    2. Identify policies to accelerate growth
    3. Choose appropriate indicators & targets; with
       monitoring results fed back to decision making
    4. Improve prioritization within strategies, & link to
       the budget
    5. Improve public expenditure management systems
    6. Alignment of assistance programs, including IDA’s



Poverty and PRS&P
1. Participation
• ―Institutionalization‖ of participation –
     –    linked to regular government decision making
         •   eg Ethiopia’s Private Public Consultation Forum
             established by law, to meet at least quarterly
         •   Bolivia’s National Dialogue Law to foster local
             accountability
•    However, what is manageable and realistic
     varies substantially across countries
     depending on:
     –   Nature of existing development dialogue
     –   Nature and capacity of parliament, civil society
         and local governments

Poverty and PRS&P
2. Growth
• All PRSPs acknowledge importance of growth for
    poverty reduction in the future. Many also focus on
    income/non-income inequalities.
• Yet analysis of linkages between growth & poverty is
    weak
   – Only half have analyzed past growth-poverty
       record
       • Exceptions: Ethiopia, Yemen, Guyana. Also
         sectoral projections in Vietnam and Uganda
   – While structural impediments seem well
       understood, priority actions to accelerate growth
       and poverty reduction generally not well-defined
       • Exceptions include Rwanda on agriculture and
         constraints
Poverty and PRS&P
                     Growth and poverty outcomes
NEGATIVE GROWTH/INEQUALITY RISES   POSITIVE GROWTH/INEQUALITY RISES
Poland                             Pro-poor           Not pro-poor
Iran, Islamic Rep                  Korea, Rep         Costa Rica
Slovak Republic                    Taiwan, China      Tanzania
Niger?                             Hong Kong, China   Bulgaria
Sierra Leone                       Singapore          Panama
Zambia                             China              Nigeria
Estonia                            Malaysia           Dominican Republic
Latvia                             Thailand           El Salvador
Russian Federation                 Mauritius          New Zealand
                                   Brazil             Senegal
                                   Colombia           Ethiopia
                                   Mexico
                                   Ecuador
                                   Philippines
                                   Chile
                                   Peru
NEGATIVE GROWTH/INEQUALITY FALLS   POSITIVE GROWTH/INEQUALITY FALLS
Guyana                             Gabon              Trinidad and Tobago
Jordan                             Indonesia          India
Belarus                            Tunisia            Bangladesh
Madagascar                         Egypt, Arab Rep    Nepal
                                   Ghana              Jamaica
                                   Sri Lanka          Honduras
                                   Hungary            Bolivia
                                   Turkey             Venezuela, RB
      Poverty and PRS&P            Pakistan
          Growth and poverty outcomes
  •       How do you define and measure pro-poor
          growth?
      –     Pro-poor bias: growth is pro-poor if the
            incomes of the poor rise faster than the
            average rate of income growth.
      –     Broadly shared growth: growth is pro-poor if
            the poverty measure of interest falls (poverty
            rate declines, average growth rate of incomes
            of the poor is positive, etc.)
  •       Which is better? ?
      -     2% average growth and 3% growth of income
            of the poor?
      -     6% average growth and 4% growth of income
            of the poor
Poverty and PRS&P
3. Targets and Indicators

•     Setting realistic targets and indicators – realistic in terms
      of expected rates of change, and institutional capacity
      to monitor
       – Subject to debate & discourse, informed by realistic
          projections of growth & likely financing
       – Grounded in country reality and priorities -- include
          the MDGs when relevant -- customizing targets to
          country circumstances : e.g. Vietnam
       – Selectivity of targets and indicators – multi-
          dimensional, but limited in number
       – Appropriate annual indicators of performance in order
          to monitor implementation:
            • intermediate indicators which focus on inputs and
               outputs, that are likely linked to long-term
               outcome targets

    Poverty and PRS&P
• Poverty and Human Rights
• Poverty and PRS&P
• PRS&P and Human Rights
             Are PRSPs relevant to
                human rights?
Synergies
• Social – education and health prominent in the
  goals and actions in PRSPs
• Political and civic – clear impetus and progress
  on this front
• Governance and corruption often stressed
• Economic? Focus on growth and income earning
  opportunities – but no guarantees

PRS&P and Human Rights
           Are PRSPs relevant to
              human rights?
Tensions
•PRSPs emphasis on:
       »   Country ownership
       »   Realism of targets
       »   Costing
       »   Sequencing
       »   Implementation
       »   Sustainability
PRS&P and Human Rights
                  PRSPs and MDGs




PRS&P and Human Rights
            Key process rights to
                underpin PRS
   •   Identification of the poor
   •   Equality and non-discrimination
   •   Participation and empowerment
   •   Accountability and transparency




PRS&P and Human Rights
          Importance of Analysis
   • Causality analysis (Unicef)
   • Poverty and social impact analysis
     (WB)
   • Multiple and contradictory incentives
     Impacts over time



PRS&P and Human Rights
                     Accountability
   • State as duty bearer in undertaking a
     PRS Process

   • Multiple claim-duty relationships
     (Unicef)



PRS&P and Human Rights
             Capacity and Realism


   •   Capacity gaps
   •   Entitlements and aspirations
   •   Sequencing
   •   Legitimacy of representatives of the
       poor

PRS&P and Human Rights
       Strengthening voice: in PRS
          process: Challenges
   - Breadth and depth of participation
   - Information-sharing prior to and after
     consultations
   - How to engage on macro-economic discussion
     policies
   - Incorporating gender concerns
   - Converting the results of participatory
     approaches into policy formulation and
     implementation
PRS&P and Human Rights
          Strengthening voice:
         External agency support
   • Institutionalize participatory processes
   • Create an enabling legal framework for
     civic engagement
   • Capacity for public expenditure tracking
   • Capacity for participatory monitoring and
     evaluation
   • Increased role of parliaments
   • Engage sectoral agencies
PRS&P and Human Rights
g prior to and after
     consultations
   - How to engage on macro-economic discussion
     policies
   - Incorporating gender concerns
   - Converting the results of participatory
     approaches into policy formulation and
     implementation
PRS&P and Human Rights
          Strengthening voice:
         External agency support
   • Institutionalize participatory processes
   • Create an enabling legal framework for
     civic engagement
   • Capacity for public expenditure tracking
   • Capacity for participatory monitoring and
     evaluation
   • Increased role of parliaments
   • Engage sectoral agencies
PRS&P and Human Rights

				
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