Poverty Reduction Support Credits(PRSCs) were intended to help countries implementcomprehensive, country-owned development strategies topromote growth, improve social conditions, and reducepoverty. PRSCs were intended to ease conditionality, makeannual flows to recipient countries predictable andintegrated with their budgets, strengthen domestic budgetprocesses, provide a framework for donor harmonization, andfocus on achieving results. In terms of process, PRSCs haveworked well. Findings show that they incorporated manyenvisaged changes in design and implementation. Theseinclude stronger country ownership, eased conditionality,and a shift of focus towards public sector management andpro-poor service delivery. PRSCs balanced tensions betweenpredictability and program credibility. Although PRSCsdiffered from preceding adjustment loans, development policylending today has converged towards a similar design. PRSCstoday are subject to the same guidelines as otherDevelopment Policy Loans (DPLs). Differences remain inpractice in terms of the association with PRSPs, broadscope, programmatic nature, and country performance. Theevaluation recommends either that PRSCs be phased out as aseparate brand name or that these differences be clearlyspelled out.
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