An Overview of Bangladesh PRSPs

1. An Overview of Bangladesh PRSPs Presentation by Muhammad G. Sarwar, PhD at Civil Service College, Dhaka 13 June 2011

2. Structure of Presentation • An Overview of PRSP Process • Foundation of Bangladesh Development Planning/Strategy • Historical context of development planning for poverty reduction since 1973 • Steps Towards Change: NSAPR II (FY 2009 – 11)

3. What is PRSP ? Introduced in 1999 by the WB and IMF as a new development framework to enhance Government accountability for poverty reduction reform efforts; enhance the coordination of development assistance between Government and Development Partners; and a precondition to debt relief and access to concessional financing from WB and IMF

4. What is PRSP ? (contd.) • A PRSP sets out a country’s macroeconomic, structural, and social policies & programs to promote growth and reduce poverty, as well as associated external financial needs. • Prepare PRSP every 3 or 5 years in a participatory process involving a broad range of stakeholders

5. Contents of PRSP • A description of the participatory process that was used in PRSP preparation; • Comprehensive poverty diagnostics- a good understanding of the poor and where they live; • Costing priorities for macroeconomic, structural, and social policies; • Appropriate targets, indicators, and system for monitoring and evaluation process

6. PRSP: A Comprehensive Development Framework PRSP framework spells out 4 principles: • Development strategies should be comprehensive and shaped by a long-term vision; • Country should devise and direct its own development agenda based on citizen participation; • Government, donors, civil society, private sector and other stakeholders should work together led by recipient country to carry out development strategies; and • Development performance should be evaluated on the basis of measurable results

7. Costing PRS Interventions • It uses simple cost models that provides estimates of magnitude, and concentrate on the main and cost intensive parts of programs / interventions; • It is mainly a bottom-up approach to costing, along with top-down models; and • It is not concerned with estimating non-financial costs such as environmental costs of program or more generally the cost of externalities.

8. Costing PRS Interventions (contd.) • Costing is an essential policy tool for quantifying the needs in terms of human resources, infrastructure, and financial resources required to meet annual and mid-term targets; • Its entry points are long-term development targets that are broken down into annual milestones; • Realism is built into the costing process that leads to prioritization of targets.

9. PEM for PRS Implementation • Poverty reduction is not merely a question of spending more, but also of using existing resources more efficiently; • Effective PEM system which ensure accountability and efficiency in management of public resources; • PEM pursues three main objectives: • To shift resources from less effective use to more effective ones (effectively allocate resources to priority needs); and • To ensure that public spending is in line with available resources (overall fiscal discipline); • To make sure that resources (public services) are used in such a way that they provide maximum value for money.

10. PEM for PRS Implementation (Contd.)

11. PEM for PRS Implementation (Contd.) • The key instrument of PRS implementation is the Budget; • Budget process has to be aligned to facilitate PRS implementation; • PEM includes all phases of the budget cycle: budget preparation, internal control & audit, procurement, monitoring & reporting, and external audit; • PRS implementation may require PEM reforms to address different phases of budget cycle.

12. PRS Implementation: linking policies, planning & budgeting • Good linkages are necessary for effective PRS Implementation and are facilitated through: • Macroeconomic stability: rigorous budgetary framework • Realism: setting policy choices compatible with available resources • Transparency and accountability: participatory budget preparation and execution • Credibility: reliable budget execution • Consistency and temporal coherence: budgeting on a medium tem perspective

13. PRS and MTEF A good linkage between PRS, MTEF and Budget process is essential for ensuring budget planning that is compatible with macroeconomic stability, resources allocation in line with PRS, its activities are implemented efficiently, and results are followed-up.

14. PRS and MTEF (contd.)

15. Bangladesh PRSPs: historical context • New Millennium: neo-liberalism strengthened further; • Millennium Declaration / MDGs in 2000 by the UN; • WB and IMF introduced PRSP in 2002; • I-PRSP: A National Strategy for Economic Growth, Poverty Reduction and Social Development launched in 2003; • Bangladesh prepared its first PRSP ‘Unlocking the Potential: NSAPR, 2005 -2007’; • First PRSP was extended up to June 2008; • 2nd PRSP ‘Moving Ahead: NSAPR II, 2009 -2011’ was launched in Oct. 2008

16. MDGs: Global Poverty Reduction Goals • MDG 1: Halve the proportion of poor and hungry people; • MDG 2: Ensure that boys and girls can complete primary schooling; • MDG 3: Eliminate gender disparity; • MDG 4: Reduce under-five mortality rates; • MDG 5: Reduce the maternal mortality ratio; • MDG 6: Reverse the spread of HIV/AIDS and the incidence of malaria and TB; • MDG 7: Improve the access of safe water, basic sanitation and the lives of slum dwellers; • MDG 8: Develop a global partnership to create a non-discriminatory global trading and financial system.

17. Second PRSP: Background • Second PRSP ‘Moving Ahead: National Strategies for Accelerated Poverty Reduction (NSAPR II) FY 2009-11’ was approved by the then Caretaker Government in October 2008 • Present Government came to power on 6th January 2009 and decided to align the NSAPR II in line with its election manifesto • The Revised NSAPR II (Steps towards Change: NSAPR II FY: 2009-11) reflects AL led Government’s development vision in terms of poverty reduction, economic growth and other socio-economic goals

18. Thrusts of the revised NSAPR II • The thrusts of the revised NSAPR II are: • A trajectory of high performing growth; • Stabilizing commodity prices; • Minimizing poverty and income inequality; • Securing health and education for all; • Enhancing creativity and human capacity; • Reducing social disparity and establishing social justice; • Tackling adverse effects of climate change; • Firmly rooting democracy in governance; • Developing ICT for giving Bangladesh a new identity as ‘Digital Bangladesh’.

19. NSAPR II: Revision Process • Consultation meetings on the draft revised NSAPR II were held with ‘Independent PRS and MDGs Monitoring Committee’, Ministries/Divisions and Sector Divisions of the Planning Commission • Draft NSAPR II was placed in the Cabinet on 9 Sept 2009 • Draft NSAPR II was placed in the National parliament on 15 Sept 2009 to be debated by the people’s representatives • This is the first time in Bangladesh that a national document of this kind is placed before the Parliament

20. Revised NSAPR II: Development Vision • Formulation of a participatory Perspective Plan (2010-2021) as a long term vision; • Terminal year of the Perspective Plan will coincide with the Golden Jubilee of Independence celebration of Bangladesh; • Prime objective of the vision is to raise Bangladesh to a middle income country and to reduce poverty and inequality; • For realizing the Vision, the government would start implementation of the Sixth Five Year Plan (2011-2015) from July 2010; • Present NSAPR II shall remain in force until FY2011; • Time frame for MTBF (medium term budget framework) shall be extended from three to five years to match with the Five Year Plan process; • MTBF shall facilitate continuation of spill over projects or programmes as well as inclusion of new ones.

21. Revised NSAPR II: Five Priority Areas Five priority areasin the revised NSAPR II are: • maintenance of macroeconomic stability and stabilising commodity prices; 2. continue effective actions against corruption; 3. ensure adequacy of power and energy; 4. reducing poverty and inequality; and 5. establishment of good governance.

22. Poverty Reduction Strategy (PRS) Framework • Poverty reduction strategy framework of NSAPR II consists of five strategic blocks and five supporting strategies. • The strategic blocks are: 1. managing macroeconomic environment for pro-poor growth; 2. increasing investments in critical areas for pro-poor growth; 3. essential infrastructures for pro-poor growth; 4. social protection for the vulnerable and disadvantaged ; and 5. human development.

23. PRS Framework (Contd.) The supporting strategies are: • ensuring participation, social inclusion, and empowerment; • entrenching solid democratic processes for good governance; • ensuring efficient delivery of public services; • caring for environment & tackling climate change; and • enhancing productivity and efficiency through science and technology.

24. Medium-Term Macroeconomic Framework (MTMF) for NSAPR II

25. Medium-Term Macroeconomic Framework (MTMF)(Contd.)

26. Revised NSAPR II: sectoral highlights • Power & Energy: • Electricity generation will be raised to 7,000 MW by 2013, 8,000 MV by 2015; • Renewable energy and coal energy emphasized; • Public- Private Partnership introduced towards a new business climate; • Exploring new fields of oil & gas; • Tapping nuclear source for generation of electricity (with generation capacity between 700 mw and 1,000 mw)

27. Revised NSAPR II: sectoral highlights (Contd.) • Reducing Poverty & Inequality • Pursuing labour intensive economic growth for accelerated poverty reduction; • promoting decentralized growth with broad public participation, growth of rural towns and semi-urban areas; • reducing population growth and reaping the benefit of demographic dividend; • focusing on women’s advancement and rights; • Investment in infrastructure, creation of employment opportunities in the lean period, bringing vibrancy in agriculture and rural life; • Expanding and strengthening safety nets programmes for the poor.

28. Revised NSAPR II: sectoral highlights (Contd.) • Good Governance will focus following issues: • making parliamentary process effective; • reforming and strengthening the public service system; • reforming the legal and judicial system to ensure judicial service for the poor; • reforming law enforcing agencies; • strengthening of democratic local governments at all levels; • promoting e-governance; • combating corruption; • ensuring human rights; • accessing information; • improving project implementation capacity.

29. Revised NSAPR II: sectoral highlights (Contd.) • Agriculture & Rural Development • Crops: • food security is the top most priority, • diversification to high value crops, • market based input distribution along with effective monitoring, • demand-driven agricultural extension and research, • revamping the agricultural marketing system, • emphasising agro-processing activities, • promoting small and medium enterprises, • climate change adaptive technology, • extension of irrigation, flood protection and drainage coverage, and • agricultural subsidy to raise productivity.

30. Revised NSAPR II: sectoral highlights (Contd.) ii Fisheries: • intensification of aquaculture by species and ecosystems, • ensuring biodiversity and preserving natural breeding grounds, • Fishery product diversification, • improve value addition in fisheries, • institutional reforms for development of fisheries, • cooperation among the key actors such as private sector entrepreneurs, NGOs and community based fishing groups, and • enhancing productivity of all khas (public) ponds and water bodies.

31. Revised NSAPR II: sectoral highlights (Contd.) iii. Livestock • focus on dairy development and meat production, • private sector will be the main actor, • Department of Livestock Service and BLRI will play a supportive role for private sector to develop livestock sub-sector. Iv. Forestry • focus on development and management of protected areas, • reformed legal framework for eco-parks, botanical gardens and safari parks, • ensuring forestry conservation in the country, • enhancing access of the poor to public commons.

32. Revised NSAPR II: sectoral highlights (Contd.) • Rural development • Formation of a ‘National Rural Development Council (NRDC)’, headed by the Prime Minister to provide guidelines for implementing the rural development policy. • Formation of a ‘National Steering Committee’ to assist the NRDC and follow-up policy implementations.

33. Revised NSAPR II: sectoral highlights (Contd.) • Environment & Water resources i.Environment and Tackling Climate Change • Environmental challenges will be met by undertaking measures in the areas of policies, planning, regulations and capacity building; • Measures will be taken to adapt and to mitigate the impact of climate change. ii. Water Resources • maintenance and capital dredging of the main rivers for the multipurpose use of water resources, • Enhancing river management for navigation, • River erosion control, and • development of hydropower.

34. Revised NSAPR II: sectoral highlights (Contd.) • Industry and Commerce • SME will be a thrust sector for accelerating economic growth • comprehensive and inclusive credit policy, • human resources development, focusing and fostering the entrepreneurial spirit, • raise product quality and standards, • Promote subcontracting and production networking, • increasing access to markets, • regional industry spread, and • policy coordination and cooperation.

35. Revised NSAPR II: sectoral highlights (Contd.) • Education and Science & Technology • to build a knowledge-based society, utmost priority will be given to quality of education to increase the employability; • to achieve 100 percent literacy by 2014; • to ensure one primary school for every 1,500 population; • to enrol all children of 6-10 years age by 2011; • quality of life of people will be improved through enhancing quality of education and health care by innovative application of ICT.

36. Revised NSAPR II: sectoral highlights (Contd.) • Health, Nutrition and Population Planning • improve the quality of Public Health Services and make it accessible to the people, especially the poor and vulnerable; • Upazila Health Complexes (UHCs), Union Health & Family Welfare Centres (UHFWCs) and the Community Clinics (CCs) will be strengthened through providing adequate manpower, drugs and other medical aids; • Reactivating 10,723 community clinics (CCs) which were established during 1996-2001; • Providing universal access to pure drinking water by 2011 and sanitation by 2013.

37. Revised NSAPR II: sectoral highlights (Contd.) • Participation, Social inclusion & Empowerment of Women • Men and women will have equal opportunities and will enjoy all fundamental rights on an equal basis; • Women Development Policy formulated by AL government in 1997 will be revived to ensure women’s empowerment and equality in rights and opportunities; and • Differential treatment of children, extreme poor, persons with disabilities and indigenous people will be addressed in an effective manner for poverty reduction and development.

38. Revised NSAPR II: sectoral highlights (Contd.) • Promoting Employment: • Job creation programmes will be undertaken for those who are by-passed by the normal growth process through widening the existing Social Safety Net (SSN) programmes, public works programmes and access to micro-credit. • A employment generation programme will be introduced for the Hard Core Poor in FY10 which would create 4.9 million man-months of employment.

39. Revised NSAPR II: sectoral highlights (Contd.) • Communication and Physical infrastructure: Transport: • Development of road sector emphasizes: • make four lanes of existing important highways. • construction of major bridges, • development of road corridor and border roads to facilitate sub-regional trade, and • regional balance in road development. • Construction of Padma Multipurpose Bridge will be completed by 2013; • Planned to construct four-lane Dhaka-Chittagong Expressway;

40. Revised NSAPR II: sectoral highlights (Contd.) • Communication and Physical infrastructure: Transport (contd.): • Developing Bangladesh Railways: • establishing rail link with neighbouring countries under the Asian Rail and Highways Scheme, • undertaking a three-year maintenance rolling plan, and rehabilitation of railway. • Feasibility studies will be undertaken to construct underground rail, circular rail, circular and elevated rail in Dhaka. • To ensure smooth and safe navigation of cargo and passenger vessels through water transport, dredging all major river routes will be undertaken; • Mongla port and Chittagong deep sea port will be developed and will be opened to all regional users.

41. Revised NSAPR II: sectoral highlights (Contd.) • Housing • provide housing for rural and urban homeless, landless and vulnerable groups: • ensure maximum utilization of land in rural areas through developing ‘growth centre’ centric housing in every union and Upazilla and housing with modern amenities in urban areas; and • facilitate private sector house building and house building by NGOs and CBOs. • provide housing for all by 2015.

42. Revised NSAPR II: sectoral highlights (Contd.) • Social Safety Net Programmes (SSNP) • All programmes undertaken under the social safety net will continue; • Social safety nets will be extended for the ultra -poor and the number of recipients of old age allowances and destitute women allowance would, at least, be doubled; • Other programmes such as one house one farm, rural housing, ideal village and back to village programmes will be given renewed emphasis.

43. Indicative Costs of Achieving Goals and Targets set out in NSAPR II (Revised) • Methodology: • In estimating resource requirement, a macro-micro approach was taken- • At the macro level, expenditure projection from the medium term budgetary framework was taken into consideration. At the micro level, the cost of implementing the activities to achieve the desired goals and targets in each thematic area was taken into consideration; • These costs are indicative and were identified in consultation with the relevant stakeholders in the ministries/agencies; • Unit cost approach was taken in estimating indicative costs of achieving strategic goals and targets; • Effort was made to take all overlaps into consideration and • multiple counting of the same cost was avoided;

44. Indicative Costs of Achieving Goals and Targets set out in NSAPR II (Revised) contd. • The estimated costs basicallyrepresentfour components: - costs of activities of ongoing projects and programmes that have spilled over from NSAPR I (2005-08); - costs of activities that have to be undertaken during the period of implementation of NSAPR II to achieve the goals and targets of thematic areas; - additional recurring costs over and above the normal increase of existing items that have to be incurred for running the activities to achieve the goals and targets of NSAPR II; and - maintenance costs necessary for newly completed projects and programmes during the period of NSAPR-II.

45. Indicative Costs of NSAPR II: Resource Gap

46. Indicative Cost of achieving Goals and Targets of NSAPR II

47. Indicative Cost of NSAPR II (contd.)

48. NSAPR II Implementation Monitoring and Evaluation • Policy Matrices are developed for all the 18 thematic areas so that concerned Ministries can develop Action Plans for their implementation; • A list of Indicators for all the 18 thematic areas are also developed for implementation monitoring and evaluation.

49. Institutional Process of M & E

50. Thanks