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KINGDOM OF LESOTHO: SECOND POVERTY REDUCTION STRATEGY PAPER AND
                JOINT IDA-IMF STAFF ADVISORY NOTE

                                          CHAIR’S SUMMING UP

                                Meeting of the Executive Directors

                                          September 11, 2012



       The Executive Directors discussed the Second Poverty Reduction Strategy Paper (PRSP)
prepared by the Kingdom of Lesotho, and the Joint IDA-IMF Staff Advisory Note (JSAN)
(IDA/SecM2012-0387; /1; /2).

        Directors commended the authorities for progress made in achieving political and
macroeconomic stability and in implementing structural reforms in fiscal and public financial
management, social safety nets, investment, and health which includes the implementation of the
HIV/AIDS strategy. Directors expressed support for the PRSP and noted their appreciation that the
preparation was informed by a broad-based participatory process. They encouraged the authorities
to ensure that the reform areas outlined in the Paper which focus on employment-generated growth,
infrastructure, particularly transportation, health, and climate change are better prioritized,
sequenced, and costed in line with the country’s available resources and administrative
implementation capacity. Directors highlighted the need to strengthen poverty analysis, statistical
capacity, and data quality.

       Directors stressed the importance of good governance and gender equality for faster and
sustained poverty alleviation and urged the authorities to tackle corruption, strengthen transparency
and accountability in government, and improve the quality and capacity of the public sector.
Directors encouraged the Bank Group support to the private sector in view of its importance to the
country’s development. Directors also highlighted the need for a sound monitoring, evaluation and
implementation framework in order to track achievements against priorities.

       Finally, Directors underscored the importance of harmonized and sustained donor support
for implementation of the second PRSP and commended the authorities for presenting a Poverty
Reduction Strategy Paper that provided a sound basis for Lesotho’s development.




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This summary is not an approved record.