POVERTY REDUCTION STRATEGY PAPER
PREPARATION STATUS REPORT
Over the past two decades, Djibouti’s economy has been characterized by series of political
crises (regional wars, domestic armed conflict) and economic shocks that have led to a
continuous decline in Djibouti’s financial situation and an erosion of its external
competitiveness. At the same time, the main sustainable human development indicators
(incidence of poverty, school attendance rate, infant mortality rate...) have reached alarming
To address this situation, the government has since 1996 been implementing an economic
adjustment and restructuring program supported by the Fund and the World Bank and has
instituted reforms in several areas: government finances, social security, public enterprises,
education, and health.
Together with these reforms, the government is committed to fight poverty. In this context,
the government conducted a survey of household living conditions in 1996 and prepared an
interim PRSP, which was submitted to the World Bank and IMF Boards in November 2001.
The government intends to submit a full PRSP by end-2002.
The purpose of this report is to take stock of progress in preparing the full PRSP one year
after the submission of the interim PRSP to the Bretton Woods institutions. This report is
divided into five sections: the main poverty reduction strategy areas; the institutional
framework for preparing the PRSP; the participatory dimension; the process of drafting the
document; and national consultations. The preparation of this document involves a
participatory process and partnership between the government, civil society, and the donors
and creditors. The methodology is based on an iterative and dynamic process and is built on a
pyramid structure: I-PRSP Æ
SRAG Æ Full PRSP Æ Advisory Group.
II. THE WEAKNESSES OF THE INTERIM PRSP
Although Djibouti’s interim PRSP constitutes a major stepping stone in the formulation of a
national poverty reduct