What is a document of poverty reduction strategy?

Poverty Reducing Strategy is a document written by a nation asking for a loan from a World Bank or the International Monetary Fund (IMF) or a nation that seeks a lower interest rate for existing loans. Contributions to the poverty reduction strategy can be considered sometimes a boundary for program documents of structural modification, which in the past have been the main means of obtaining a loan from the IMF or the World Bank. The idea of ​​a strategy for reduction of poverty is that it allows loans to be much more to express themselves in its own future, helps them maintain sovereignty and allow their population to enter future development. One of the primary criticisms of the IMF and the World Bank over the 90s was that it was going through a large amount of decision -making from the rental nations and efficiently blackmailing them into the reception of sometimes harsh conditions on the free market in exchange for much needed financing.

Strategy PostThe reduction of poverty is essentially an outline of what the country plans to help build its economy to benefit the population and ensure that it can repay its loans. The contribution to the poverty reduction strategy should be quite complex, to address social programs, structural development and macroeconomic policy that the country plans to introduce or improve to strengthen their economic outlook.

Structural adaptation programs were created in response to the 70s of the economic crisis. Years when many countries were unable to repay their loans. The IMF and the World Bank want to avoid repeating this situation to remain solvent before they were allowed to borrow money. Although it was somewhat successful from a fiscal point of view, it attracted great criticism from those who felt that the programs of the structural adaptation of the IMF and the world banks often did not take into account social issues or looked at the long -term health of the national economy.

Paper Strategy of Reducing soil povertyreinded as a kind of middle way. Although the nation is not simply left on its own devices to do what they want, they also do not have a forbidden way for them. The nation with the entry from the IMF, the World Bank and other participating parties comes with a plan to build their economy. Paper Strategy of poverty reduction is regularly referred to when the IMF and the World Bank register to see how development strategy is going. The assessment of joint employees are carried out and things are modified accordingly.

As part of the overall campaign of increased transparency within IMF and the World Bank, paper Strategy of poverty reduction of each nation can be displayed online. In addition, joint employees are also available. This allows the country's citizens to find out what amount based on the conditions of their national loans, and also allows you to keep cards outside the party, which keeps the IMF and the World Bank much more responsible to the public than ever before.