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Role of Infrastructure in Economic Growth and Poverty Reduction

Lessons Learned from PRSPs of 33 Countries

As Poverty Reduction Strategy Papers (PRSPs) are the driving force behind the overall development strategy of many developing countries, it is essential to consider the role of infrastructure in this important poverty reduction process. This document is, therefore, presented to contribute to the discussion on infrastructure and pro-poor growth of this second workshop. Participants are invited to provide comments in preparation for the third workshop. Furthermore, this document aims at facilitating discussion among donors to improve their inputs to the ongoing PRSP revision process by providing an overview of the role of infrastructure for economic growth and poverty reduction.

The present document summarises the findings of a background research paper that analyses the role of infrastructure in the PRSPs of 33 countries that completed their report as of 1 December, 2003.  The background paper offers a stocktaking of the contribution of infrastructure interventions to poverty reduction and pro-poor growth in each of these PRSPs (see Annex 1 for the summary findings of the PRSP review by country).

The present document has two main sections: the role of infrastructure in economic growth and poverty reduction in PRSPs (see section II) and enhancing effectiveness of aid to infrastructure development (see section III)...

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