Independent evaluation of SDC’s bilateral engagement in the Poverty Reduction Strategy Paper (PRSP) process

This paper assess Swiss Development Cooperation (SDC's) contribution to PRSP processes and how SDC's own approach was being affected by PRSPs. The evaluation involved an SDC-wide survey on PRSP experience to date, and country case study visits to Burkina Faso, Vietnam, Nicaragua and the Kyrgyz Republic. This report synthesises the findings of the SDCwide survey and the country case study reports.Sample of major findings and conclusions include:within SDC and by other bilateral donors moving from a project based to a more programmatic approach based on national ownership, is more likely to result in sustained reduction of poverty. Most donors are engaging with PRSPs at policy level and many are taking steps to align their programming with PRSPa key question for this evaluation was whether Switzerland, as a small volume donor, could nevertheless add value and have significant influence in the context of PRSPs. The weight of both evidence and opinion is emphatically yes. PRSPs present significant opportunities for a small volume donor such as Switzerland 1, which wants to make a strategic impact on povertySDC and seco should engage energetically with PRSP processes, because there are strong synergies between SDC and seco development cooperation objectives and the objectives underpinning the PRSP approachcase study evidence provides clear examples showing that where Switzerland is engaging with PRSPs, it can make a worthwhile contribution, both in concert with other donors and acting bilaterally. Switzerland is perceived as reliable, committed, intelligent in the use of its limited finance; a team player which brings bilateral capacity to the tableSDC should produce a high level statement underlining the importance and potential of PRSPs to provide a framework for SDC-wide engagement. Considering the strong linkages and comparative advantages of SDC and seco, there is a strong case for producing a joint statement with secoSample of main Recommendations:SDC and seco should engage energetically with PRSP processes, because there are strong synergies between Swiss development cooperation objectives and the objectives underpinning the PRSP approachSDC should produce a high level statement aimed principally at an internal audience, underlining the importance and potential of PRSPs to provide a framework for SDC-wide engagement. This would: provide a framework for all SDC departments and COOFs to use in assessing their level of PRSP engagement make clear the importance of PRSPs to SDC and seco as a wholeprovide the conceptual overview underpinning any changes in structure or mechanisms that SDC adopts to support its engagement in PRSPsSwitzerland should seek alliances with like-minded donors (bilateral and multilateral) whilst maintaining bilateral relations with governmentSwitzerland should build on the greater cooperation between donors under the PRSP framework, as a vehicle for pursuing the harmonisation agenda outlined in the DAC TFDP processSwitzerland should maintain its flexible approach when helping to shape common conditionality, advocating an overall assessment of the PRSP, rather than linking disbursements narrowly to output criteriaSDC programming (bilaterally and with other donors) in support of PRSPs should avoid the establishment of parallel mechanisms and emphasise the use of domestic structures for which there is accountability to local stakeholdersSDC should enhance existing processes of accountability towards domestic stakeholders by paying particular attention to the role of parliaments and representative authorities within civil society