The World Bank and IMF are engaged in high-level dialogue on developing outlines for the content and process of Poverty Reduction Strategy Papers - with the Bank leading on the technical side. These papers are intended to be approved by the Boards of both the Bank and the Fund, and will replace the Policy Framework Paper. The structural conditions of the successor to ESAF (the Poverty Reduction and Growth Facility) will be drawn from the PRSP, as will the objectives of the Bank Country Assistance Strategy. There is an objective that the PRSP should become the over- arching framework for all donor support, with the strategy providing a comprehensive overview linked to the macro and budget framework, and to an action plan for implementation. There is heavy emphasis on participation in the formulation and monitoring of PRSPs.

Good progress has been made but our discussions and the presentation we were asked to give to Bank staff focused on a number of issues which still need clarification.