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Micro-finance Policy and Development Framework: Malawi
In Malawi poverty is more persistent in the rural areas at about 65.3% of the population. The recent poverty profile (National Economic Council, 2000) suggests that these poor are characterised by malnutrition, lack of income earning opportunities, and unfavourable production environment. Female-headed households, which are estimated to be about 35% nationally, are consistently poorer than male-headed households, and are mainly engaged in subsistence farming and petty trading activities.

Microfinance as Key Poverty Reduction Strategy Paper (PRSP) Component: The Majority of PRSPs Include Access to Financial Services
By the late 1990s, it was clear that something was not working in the field of development. Deteriorating economic growth in Sub-Saharan Africa, the failure of Structural Adjustment Programmes used by the World Bank and International Monetary Fund (IMF) and the question of how to link debt relief to poverty reduction led policy makers to adopt the Poverty Reduction Strategy Paper (PRSP) initiative in September 1999.

Lessons Learned
The privatisation process in Africa is still far from complete and has led to mixed results. The successful cases of the Compagnie Ivorienne d’Electricité, Sonatel, and Société d’Energie et d’Eau du Gabon can not hide the dramatic failures.

Other poverty reduction strategy Related Articles

Wanted: jobs for Africa’s youth - Job Plans
However, most countries have not yet incorporated job creation plans into their national development frameworks. The national strategies include anti-poverty programmes, commonly based on Poverty Reduction Strategy Papers (PRSPs). These are documents developed with assistance from the World Bank and the International Monetary Fund (IMF) to set national priorities, direct spending of debt-relief funds and coordinate donor programmes.

Wanted: jobs for Africa’s youth - Policy Reforms
“For successful poverty reduction, African countries have to be in the driver’s seat,” says World Bank Africa Region Vice-President Gobind Nankani. “Africans know best where the shoe pinches. They should craft their own poverty-reduction strategies based on national realities.”

Microfinance as Key Poverty Reduction Strategy Paper (PRSP) Component: The Majority of PRSPs Include Access to Financial Services
By the late 1990s, it was clear that something was not working in the field of development. Deteriorating economic growth in Sub-Saharan Africa, the failure of Structural Adjustment Programmes used by the World Bank and International Monetary Fund (IMF) and the question of how to link debt relief to poverty reduction led policy makers to adopt the Poverty Reduction Strategy Paper (PRSP) initiative in September 1999.

1.16 Building a more inclusive global economy: Working Out of Poverty
A strategy that combines local action in a sound national macroeconomic framework with an international effort to boost and sustain investment, trade growth and technological transfers could yield a substantial dividend in the form of poverty reduction and growing markets. I would like to flag a few issues.

2.4 Agricultural workers and rural communities: Working Out of Poverty
A better understanding of the social and economic dynamics of rural communities is critical to the reduction and eradication of poverty. The world’s poorest countries are those most dependent on agriculture. Threequarters of the people in extreme poverty live in rural areas.

2.8 The foundations of a decent work strategy for poverty reduction: Working Out of Poverty
Most analysts of the nature and causes of poverty agree that growth in per capita income is essential to reducing poverty and that persistent growth failures are accompanied by a persistent failure to reduce poverty. However, they have not found a stable relationship between the rate of average per capita growth and the rate of poverty reduction.

3.5 Building local development through cooperatives: Working Out of Poverty
The participation of people living in poverty in policies to improve their livelihood and counteract social exclusion and vulnerability is increasingly emphasized in poverty reduction strategies.

5.2 International economic integration and social justice: Working Out of Poverty
Policies to improve the governance of the labour market based on the decent work approach can create and enlarge the channels that ensure that sustainable growth yields the largest possible reduction in poverty. However, a large proportion of people experiencing extreme poverty live in countries that are themselves economically and socially excluded.

5.6 A coherent framework for national and local action: Working Out of Poverty
Increased in-depth analysis of the multifaceted experience of poverty is leading to a growing awareness of the need for a range of policies that are specific to the problems faced by different communities and countries. Given that the causes of poverty are many and interconnected, targeted policies have most effect when they act in combination to break cycles of poverty. One of the most encouraging aspects of the new approach to poverty reduction and eradication is therefore the emphasis on policy coherence, based on a comprehensive development framework.

Assessing social performance cost-effectively
Many MFIs have an explicit social mission that goes beyond profitability such as reducing poverty and exclusion by providing good quality, reasonably priced and sustainable financial services to poor people who are normally excluded from regular banking systems. The link between microfinance services and poverty reduction, however, is far from simple. Positive impacts cannot be taken for granted.

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