Azerbaijan - Poverty reduction strategy paper and joint IDA-IMF staff advisory note : second annual progress report
Gratwick, Katherine | Eberhardt, Anton | Clark, Alix | Wamukonya, Njeri
Azerbaijan's Poverty Reduction Strategy Paper-The State Program on Poverty Reduction and Economic Development (SPPRED)-was prepared and presented to the Boards of the International Development Association (IDA) and the International Monetary Fund (IMF) in May 2003. In August 2004, the first Annual Progress Report was prepared and provided to the IMF and IDA Boards. The attached second Annual Progress Report (the Report) further updates results achieved since the last review. This report also incorporates progress on achieving the Millennium Development Goals (MDGs) and includes a three-year Medium-Term Expenditure Framework. This Joint Staff Advisory Note (JSAN) discusses the SPPRED implementation to date, reports on progress in addressing issues raised in the previous Joint Staff Assessment (JSA), and provides the staffs' advice on key priorities for strengthening the SPPRED process further. Overall, the Report provides continuing evidence of poverty reduction and strong real growth performance, which contributed to progress toward achieving the MDGs. It also indicates that a number of issues raised in the previous JSA are being addressed, including continued reform of the budget process and a gradual alignment of the budget with the SPPRED. At the same time, there are other areas that require continuing attention such as strengthening the poverty diagnostic, enhancing coordination of macroeconomic policies and reducing inflation to single digits, improving the funding and effectiveness of social services, reducing energy subsidies, reforming the customs administration, deepening financial intermediation, improving governance, and addressing the barriers to private sector development, including underdeveloped infrastructure.
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