Poverty Reduction Strategy

The poverty reduction strategy is a term from international development policy . It is set out in what are known as Poverty Reduction Strategy Papers (PRSPs) (German: Strategy Paper on Poverty Reduction ). The International Monetary Fund (IMF) and the World Bank developed this concept in 1999. The aim of the Poverty Reduction Strategy Papers is to align the policies of these two institutions towards the poorest developing countries with the aim of fighting poverty. The philosophy is based on the fact that the countries themselves develop strategies for the further development of their economy and social system and also take responsibility for implementation. The donor countries support these strategies. The PRSPs should be created in a participatory process, i. This means that civil society (political parties and parliament, business associations and trade unions, churches and non-governmental organizations ) participate in the development of the strategy.