Mainstreaming Environment and Climate Change in the Implementation of Poverty Reduction Strategies

Abstract

Poverty reduction strategies (PRSs) provide a central framework for macroeconomic, structural, and social policies in developing countries. Because of the numerous and complex links between environment and poverty, it is important that environmental issues are taken into account in the PRS process. This paper follows six previous assessments of the degree of mainstreaming environment in the PRS process using a similar methodology to present trends and provide an understanding of the effectiveness of environmental interventions in reducing poverty. However, it goes beyond previous assessments in three important ways. In-depth country case studies of the evolution of environmental mainstreaming in the PRS process over time. Many countries have now gone through several iterations of their poverty reduction strategies and have received a sequence of credits designed to implement key aspects of these strategies, making it possible to see how the process of mainstreaming environment in the strategies has evolved over time. In this assessment, the authors conduct detailed case studies of this evolution in Ghana, Albania, Bangladesh, and Vietnam. The choice of countries was based on the maturity of each country's PRS process, taking into consideration country size, lending volume, and vulnerability to climate change. An assessment of climate change mainstreaming in the PRS process in the same four countries. Like environment as a whole, the potential impacts of climate change have often been considered separately, if at all rather than as an integral part of development policies. An evaluation of environmental development policy loans (DPLs) in several middle income countries (Brazil, Gabon, and Mexico). DPLs represent an important opportunity to mainstream environment and climate change into middle-income countries' growth and development. This review assesses the process by which environmental DPLs have been prepared and the effectiveness with which they have been implemented.