§ Ms DrownTo ask the Secretary of State for International Development if she will amend poverty reduction strategy papers—PRSPs—so that at decision point there is scope for greater financial flexibility to take into account changing factors and amendments to the plan can be made before completion point. [45191]
§ Clare ShortPoverty Reduction Strategy Papers (PRSPs) are country-owned documents produced by Heavily Indebted Poor Countries (HIPC), setting out how they intend to use the resources available to them—including from debt relief—to tackle poverty more effectively. We place great importance on this process, which involves consultation with civil society and the international donor community.
Under the HIPC Debt Initiative, countries receive interim debt relief once they reach Decision Point, at which stage they are required to produce an interim PRSP—a road map setting out what action needs to be taken to produce a full PRSP by Completion Point. Clearly, their circumstances may have changed by the time they reach Completion Point when the relief becomes irrevocable. The UK has worked to encourage agreement that the debt sustainability of countries will be reviewed at Completion Point, and that additional relief will be provided, in exceptional cases, where there has been fundamental changes in a country's circumstances due to external adverse factors.
§ Ms DrownTo ask the Secretary of State for International Development what action she is taking to address the difference between the growth rate built into Malawi's PRSP and its actual growth rate. [45190]
§ Clare ShortWe and other donors are advising the Malawi Government on the necessary conditions for higher growth. Prerequisites are restoration of macroeconomic stability, and improved economic and financial management. The Government has recently declared its intention to proceed with key reform measures. If successful, these should lead to higher private sector led growth.