This paper addresses the perception that Poverty Reduction Strategy (PRS) processes in Latin America and the Caribbean have not grappled effectively with politics, and have not engaged successfully with political actors and institutions. Commissioned on behalf of the Latin American and Caribbean PRS Donor Network, it synthesises evidence from documents and interviews on how this situation has arisen and how it might be confronted. It is based on experience in three Latin American Highly Indebted Poor Countries (HIPCs): Bolivia, Honduras and Nicaragua.