Eggert, Martin

Foged, Mathias

Hansen, [No Value]

Jensen, [No Value]

Lasse, [No Value]

Mathias, [No Value]

Abstract This project critically assesses the shift from Structural Adjustment Programmes (SAP) to Poverty Reduction Strategy Papers (PRSP) by the World Bank and IMF in Zambia. The project is a case study of the agricultural sector in Zambia, which has been chosen on the basis that a vast majority of poor people are situated in rural areas and employed by the agricultural sector. The data on which the project is constituted is therefore the relevant policy-papers and secondary literature. The analytical model, on which the project is based, is framed by a critique of the neoclassical development theory. The critique is grounded in an institutional approach, which together with a framework of theoretical linkages between poverty and agriculture creates the analytical framework. By analysing policy-papers from periods of development assistance loans, the project examines how the strategy-shift can be seen in the policies. The policies that Zambia implements under the SAP and the PRSP are analysed in order to show whether the poor are taken into consideration or not. The analysis of the policies implemented under SAP show that growth, liberalization/privatization and competition was the main focus. Thereby that period of development in Zambia happened very much under the influence of the neoclassical development theory, which entails that market forces and global capital market shall develop a stable and growing economy. The analysis of the PRSP from 2002 shows a shift towards a more nuanced approach. Poverty reduction is in focus, although it is supposed to happen combined with neoclassical ideas of growth and competition. The following progress reports shows that there were constraints to the reduction of poverty. One of these were the institutional inability to effectively allocate and disburse the allocated funds, which made a large part of the capital stay in domestic banks. Another central issue is shown to be the continuing government borrowing from domestic banks, a problem which is argued to be related to the substantial debt servicing. This kept the interest rate at a very high level, impeding investment opportunities for small scale farmers. The latest major policy-paper shows a continuing of the pro-poor tendency, and although it is as vague as the first PRSP it shows a number of pro-poor initiatives and programs. The project concludes that the focus on poverty reduction has increased with the implementation of the PRSP, although there are some constraints to reducing poverty. These include institutional incapacities to effectively invest in poverty reduction programs and debt servicing.Abstract This project critically assesses the shift from Structural Adjustment Programmes (SAP) to Poverty Reduction Strategy Papers (PRSP) by the World Bank and IMF in Zambia. The project is a case study of the agricultural sector in Zambia, which has been chosen on the basis that a vast majority of poor people are situated in rural areas and employed by the agricultural sector. The data on which the project is constituted is therefore the relevant policy-papers and secondary literature. The analytical model, on which the project is based, is framed by a critique of the neoclassical development theory. The critique is grounded in an institutional approach, which together with a framework of theoretical linkages between poverty and agriculture creates the analytical framework. By analysing policy-papers from periods of development assistance loans, the project examines how the strategy-shift can be seen in the policies. The policies that Zambia implements under the SAP and the PRSP are analysed in order to show whether the poor are taken into consideration or not. The analysis of the policies implemented under SAP show that growth, liberalization/privatization and competition was the main focus. Thereby that period of development in Zambia happened very much under the influence of the neoclassical development theory, which entails that market forces and global capital market shall develop a stable and growing economy. The analysis of the PRSP from 2002 shows a shift towards a more nuanced approach. Poverty reduction is in focus, although it is supposed to happen combined with neoclassical ideas of growth and competition. The following progress reports shows that there were constraints to the reduction of poverty. One of these were the institutional inability to effectively allocate and disburse the allocated funds, which made a large part of the capital stay in domestic banks. Another central issue is shown to be the continuing government borrowing from domestic banks, a problem which is argued to be related to the substantial debt servicing. This kept the interest rate at a very high level, impeding investment opportunities for small scale farmers. The latest major policy-paper shows a continuing of the pro-poor tendency, and although it is as vague as the first PRSP it shows a number of pro-poor initiatives and programs. The project concludes that the focus on poverty reduction has increased with the implementation of the PRSP, although there are some constraints to reducing poverty. These include institutional incapacities to effectively invest in poverty reduction programs and debt servicing

Eggert, Lasse

Hansen, Mathias Wejs

Jensen, Martin

Roskilde Universitet

Make Em an Offer They Can’t Refuse - Structural Adjustment and Poverty Reduction

Make Em an Offer They Can’t Refuse - Structural Adjustment and Poverty Reduction

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Roskilde Universitet