Sao Tome and Principe - Poverty Reduction Strategy Paper (PRSP) and joint assessment (English)

This first Poverty Reduction Strategy Paper (PRSP) builds on the strategy set in the interim PRSP (I-PRSP), and, capitalizes on its lessons, and on previous efforts, such as mainly the 2000-2001 survey of living conditions, and poverty analyses. The PRSP...  See More + This first Poverty Reduction Strategy Paper (PRSP) builds on the strategy set in the interim PRSP (I-PRSP), and, capitalizes on its lessons, and on previous efforts, such as mainly the 2000-2001 survey of living conditions, and poverty analyses. The PRSP sets an ambitious policy agenda-with an overall cost of about US$210 million for the first seven years of implementation. The main long-term objectives are the following: 1) reduce the percentage of Sao Tome and Principe's population living in poverty (54 percent) by one half by 2010, and by more than two thirds by 2015; 2) provide access to basic social services for the entire population by 2015; and, 3) reduce the gap in social indicators across urban and rural populations, gender and geographical locations. The main strengths of the PRSP are in: a) providing a poverty diagnosis and a comprehensive private-sector-led development strategy; b) paying special attention to cross-cutting issues, notably governance; and, 3) identifying detailed indicators to monitor progress in poverty reduction. The staffs concerns identified in a number of areas, where further analysis would be desirable, suggest the PRSP could benefit from: 1) prioritizing actions among, and within sectoral strategies, and making them fully consistent with the annual fiscal budget and the overall medium-term poverty alleviation strategy, 2) launching an in-depth analysis of the impact of potential oil revenues on the economy; and, 3) making an assessment of the redistributive effect of the proposed reforms, including taxation, land redistribution, and privatization. The staff also supports further work in securing good governance and fighting corruption, especially in the context of rising oil revenue. Trade policy is another area that merits attention, particularly given the emphasis of the PRSP on the need for non-oil investment, and the diversification of production and export. Priority public actions to reduce poverty, increase access to social services to support reaching the Millennium Development Goals (MDGs), and shrink the geographical social and gender gaps are based on the following strategic pillars: maintain macro-stability while supporting accelerated and broad-based economic growth; increase population access to basic social services, particularly basic education and health; strengthen public institutions and foster good governance; and, devise mechanisms for monitoring and updating the strategy.  See Less -