Final Clearance Procedures For I-PRSP/JSA And PRSP/JSA Documents

Clearance Procedures for PRSP-related Documents in LAC 1

1. As of January 2005, the system of Joint Staff Advisory Note (JSAN) has replaced the Joint Staff Assessment (JSA) for the Poverty Reduction Strategies (PRS). The change is intended to bring out several significant improvements: (i) a more candid and realistic assessment of the gaps in the PRS so that it becomes a more operational and viable development framework for the client countries; (ii) a closer alignment of the Bank CAS and program of lending and non-lending instruments to help client countries address these gaps and realize their development goals in the PRS; and (iii) a simplification of the PRS-JSAN process in the Bank.

2. Following amendments to simplify and streamline the JSAN process even further (see kiosk announcement dated February 4, 2009), JSANs are not required for Annual Progress Reports (APRs), except in the context of the enhanced HIPC Initiative. Instead, IDA and IMF staff rely on a regular annual feedback process to review progress and challenges in PRS implementation that would normally evaluate performance relative to PRS benchmarks and monitoring indicators; review the linkages between the PRS and national systems and processes (e.g., budget, monitoring, and planning); and review the coming year’s policy intentions, particularly as reflected in the budget. The annual feedback process will draw, to the extent possible, on existing in-country mechanisms.

3. Within the Bank, PRSP related documents for Board presentation or circulation must be approved first by the Regional Vice President (RVP), and then by the Managing Director (MD) for Operations, in that order. The MD will be advised on his clearance by OPCS staff (Manuela V. Ferro). PREM anchor will continue working on knowledge management, external outreach and Bank-wide reports, but will not be involved in the clearance process.

4. At the IMF, the area department front office clears the document and transmits the draft to PDR and other departments. PDR then reviews and signs off on the documentation before transmission by the area department to senior management for clearance.

5. The Board discusses full PRSPs and JSANs (the JSANs should include a section with proposed topics for discussion) but does not approve them. Annual Progress Reports (APRs) and their JSANs -linked to a HIPC decision-, go to the Board for information only, not for discussion.

1 Reference to “PRSP related documents” is to: PRSP/ JSANs, I-PRSP/JSANs and Annual Progress Reports/ JSANs.

Updated February 24, 2009 - 2 -

LAC Clearance for Quality Assurance and Review

6. The Country Director (CD) through the TTL prepares the JSAN package after going through the process of consultation and clearance detailed below.

7. The JSAN clearance process will be the following:

a. The CD/TTL sends the first draft for a consultation phase with the Country Team (core team members of the respective tasks) and Sector Leaders. Ideally, this version is sent by the Fund’s mission chief to the Area Department for clearance.

b. The revised draft JSAN (revision coordinated with the Fund) is sent by the CD for comments to the LCSPP Sector Manager (Jaime Saavedra), and to a LCR PRSP TO: List. This provides the opportunity to get advice and insights from units across the Bank, including OPCS (Manuela V. Ferro)2. Major issues for discussion and feedback should be identified in the memo at the moment of circulation.

c. In the Fund this draft is sent by the Area Department to PRD for clearance at the Fund, so that the TTL and team can incorporate, in coordination with the Fund, comments from the different Bank and IMF units as well as PDR.

d. TTL and team are responsible for incorporating comments and demonstrating the links between the JSAN conclusions and the CAS and strategy pursued with the country.

e. LCSPR Director is responsible for clearance within the region, and may delegate clearance to the LCSPP Sector Manager (Jaime Saavedra). After this clearance, the CD signs and sends it to the RVP for regional sign-off and transmission to the MD.3 This document must have incorporated IMF’s PDR comments. The RVP therefore signs off on the package, advised by the Director of Strategy and Operations (Stefan Koeberle), after PDR comments on the IMF side have been incorporated and after clearance by LCSPR.

f. Since the JSAN and PRSP products have close links with Bank strategy and lending, the TTL and team have the option, should the timing work out and they so wish, to substitute step b with a circulation of the JSAN and PRSP jointly with a CAS upstream ROC, DPL concept review or DPL ROC to gather additional institutional feedback and demonstrate the close linkages

2 The LCR PRSP TO: List will be automatically updated using the same roster included in the ROC Bank-wide CC: list and the ROC LCR TO: list. 3 As with other documents requiring RVP approval, a hard copy of the package should be brought to LCSDE (currently Silvia Marquina-leon or Glaura Lage) to be logged in for OS review.

between CAS/DPL and PRSPs. This has to be coordinated with the ROC Secretary, LCSDE.

8. The final package should be submitted through the RVP to the MD with (a) a cover memorandum indicating clearance (sample in Annex 1) and (b) one copy of a draft distribution memorandum to the Board (in Annex 2). Upon clearance, the MD will initial the extra copy of the distribution memorandum to the Board. This package should be conveyed by the TTL to SECPO (Axel Peuker). An electronic version of the draft distribution memorandum must also be sent to SECPO (Carol Somansundaram, copied to Edna Harris).

9. The first page of the JSAN bears the signature of the Senior Advisor of the Western Hemisphere Department (WHD, currently Gilbert L. Terrier) and the Assistant Director of the Strategy, Policy and Review Department (SPR, currently Anthony R. Boot) of the IMF, and the Regional VP in IDA (currently Pamela Cox). Sample cover pages are attached as Annex 3.

10. It is essential that the country teams agree in advance with their IMF colleagues on a timetable that allows for the coordination of the respective internal clearances, printing and distribution to Executive Directors, and communicate closely during the final clearance. A generic processing schedule is attached below for this purpose. The documents are not to be sent to either SECPO or the Print Shop until final clearance is obtained from both IMF management and the Bank’s MD.

11. In addition to clearances, teams should take into consideration the lead time of 3 full working days for RVP approval, 5 full working days for MD approval, 5 full working days for SECPO/print shop and 15 working days distribution period for Board consideration of full PRSPs and the accompanying JSANs. SECPO will prepare covers to the Board for progress reports depending on whether the report is distributed for information or for consideration by the Board. The JSANs for PRSPs/I-PRSPs and for PRSP progress reports that are discussed by the Board will be publicly disclosed after the Board discussion. The JSANs for PRSP progress reports sent to the Board for information will be publicly disclosed 10 working days after their distribution to the Board.

12. The Bank and Fund country teams should agree on tentative dates for Board consideration of full PRSPs as early as possible, preferably 3 months in advance, recognizing that the actual timing will be determined by country processes. Please note that the WB Board expects that PRSPs/JSANs will inform our country strategies. Thus, Board consideration of PRSPs/JSANs should take place at least 30 working days before its discussion of the corresponding CASs. Requests for Board dates should be sent to the Regional Coordinator (Maria Curzi). Teams should ensure Board dates in SAP are kept up to date. The gap between the dates

for Board consideration of full PRSPs/JSANs in the Bank and the IMF should be minimized (normally no more than 5 working days). The same delay is expected with the Boards of both institutions when considering JSANs of progress reports linked to a HIPC decision.

Please contact Mr. J. Saavedra with any questions on these procedures.

JSAN PROCESSING SCHEDULE Milestone Milestone WORLD BANK IMF (Forward) (Backward) Preparation PRSP Officially submitted by N D-58 the government Document preparation N+10 D-48 Consultation Process CD/TTL sends JSAN to Mission chief sends to Area HIPC/PRSP/PRSC country Dept for comments N+10 D-48 team and Sector Leaders for virtual consultation Comments received N+13 D-45 Team Revision Team Revision N+18 D-40 Regional and Institutional Clearance Steps CD sends revised draft JSAN Area Dept sends to PDR for to LCR PRSP Review to: List comments -including OPCS (Manuela N+18 D-40 Ferro)- for review and comments Comments Received. Comments Received. N+23 D-35 Team Revision Team Revision Revised version cleared by Revised version signed by area LCSPR Director (may delegate dept and PDR N+25 D-33 to LAC PRSPLA) Revised version signed by CD Revised version signed by CD and sent to RVP, with hard and sent to RVP N+25 D-33 copy to LCSDE for log-in JSAN, cleared by LCSPR and PDR, approved by RVP and N+28 D-30 sent to MD Senior Management Clearance MD Operations approves Deputy MD N+33 D-25 SECPO and Print Shop Checked/Cleared by SECPO N+38 D-20 Sent to the Print Shop Distributed to the Board N+43 D-15 BOARD MEETING N+58 D

Annex 1

THE WORLD BANK/IFC/M.I.G.A. OFFICE MEMORANDUM

TO: Mr. Juan Jose Daboub, Managing Director

THROUGH: [Name of regional VP], [Region]

FROM: [Name], Country Director [Region]

EXTENSION:

SUBJECT: [Country Name] – PRSP and Joint Staff Advisory Note on the PRSP

Attached for your clearance and subsequent distribution to the Board are the [Country Name] PRSP and a Joint World Bank-IMF Staff Advisory Note (JSAN) on the PRSP. These documents are scheduled to be considered by the Board on [Month, Day, Year].

(A short informative paragraph may be added to clarify special features of the package or to indicate the specifics of arrangements with Fund.).

Our colleagues from the IMF expect to receive clearance from their Management by [Month, Day]. They are targeting a Board date of [Month, Day].

cc: Messrs./Mmes. Jeffrey S. Gutman (OPCVP) Scott White (Acting LEGVP) Anna Wellenstein (MDD) Manuela V. Ferro (OPCCE)

[SAMPLE IF APR DOES NOT GO TO THE BOARD. OTHERWISE USE LANGUAGE OF THE PREVIOUS MEMO.]

THE WORLD BANK/IFC/M.I.G.A. OFFICE MEMORANDUM

TO: Mr. Juan Jose Daboub, Managing Director

THROUGH: [Name of Regional VP], [Region]

FROM:[Name], Country Director [Region]

EXTENSION:

SUBJECT: [Country Name] – Annual Progress Report of the Poverty Reduction Strategy and Joint Staff Advisory Note

Attached for your clearance and subsequent distribution to the Board are the [Country Name] Annual Progress Report (APR) of the Poverty Reduction Strategy and a Joint World Bank- IMF Staff Advisory Note (JSAN) on the Progress Report. These documents are scheduled to be circulated to the Board for information on [Month, Day, Year].

(A short informative paragraph may be added to clarify special features of the package or to indicate the specifics of arrangements with Fund.).

Our colleagues from the IMF expect to receive clearance from their Management by [Month, Day] to proceed with IMF Board circulation of the documents.

cc: Messrs./Mmes. Jeffrey S. Gutman (OPCVP) Scott White (Acting LEGVP) Anna Wellenstein (MDD) Manuela V. Ferro (OPCCE)

Annex 2

FROM: Vice President and Secretary [Month, Day, Year]

For meeting of Board: [weekday], [day] [month], [year]

COUNTRY NAME: Poverty Reduction Strategy Paper/Interim Poverty Reduction Strategy Paper and Joint World Bank–IMF Staff Advisory Note on the PRSP/I-PRSP

1. Attached is the Poverty Reduction Strategy Paper (PRSP)/Interim Poverty Reduction Strategy Paper (I-PRSP), and a Joint World Bank-IMF Staff Advisory Note (JSAN) on the PRSP/I-PRSP for [country name].

2. The PRSP/I-PRSP was prepared by the Government of [Country Name]. It contains [.] and provides [ ]. It also includes [ ].

3. The Joint World Bank-IMF Staff Advisory Note on the PRSP/I-PRSP highlights [ ] and recommends [ ].

4. Questions regarding these documents should be addressed to Mr./Ms. [name and telephone number of Country Team contact person].

Distribution: Executive Directors and Alternates President Bank Group Senior Management Vice Presidents, Bank, IFC and MIGA Directors and Department Heads, Bank, IFC and MIGA Secretary, IMF

FROM: Vice President and Secretary [Month, Day, Year]

COUNTRY NAME: Annual Progress Report of the Poverty Reduction Strategy and Joint World Bank–IMF Staff Advisory Note on the Annual Progress Report

1. Attached is the Annual Progress Report (APR) of [country’s] Poverty Reduction Strategy, and a Joint World Bank-IMF Staff Advisory Note (JSAN) on the APR.

2. The APR was prepared by the Government of [Country Name]. It contains [.] and provides [ ]. It also includes [ ].

3. The JSAN on the APR highlights [ ] and recommends [ ].

4. The JSAN will be made publicly available after [date, 10 working days after the progress report is distributed to the Executive Directors]

[OMIT THIS PARAGRAPH IF THE APR IS CONSIDERED BY THE BOARD]

5. Questions regarding these documents should be addressed to Mr./Ms. [name and telephone number of Country Team contact person].

Distribution: Executive Directors and Alternates President Bank Group Senior Management Vice Presidents, Bank, IFC and MIGA Directors and Department Heads, Bank, IFC and MIGA Secretary, IMF

Annex 3 Document of The World Bank

FOR OFFICIAL USE ONLY

Report No. [xxxx]

[country name]

JOINT IDA-IMF STAFF ADVISORY NOTE

ON THE

POVERTY REDUCTION STRATEGY [PAPER]

[ANNUAL PROGRESS REPORT]

[date of final clearance by Bank and IMF senior management]

This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.

INTERNATIONAL MONETARY FUND AND INTERNATIONAL DEVELOPMENT ASSOCIATION

[COUNTRY NAME]

Joint Staff Advisory Note on the Poverty Reduction Strategy [Paper] [Annual Progress Report]

Prepared by the Staffs of the International Monetary Fund and the International Development Association

Approved by Gilbert L .Terrier and Anthony R. Boote (IMF) and Pamela Cox (IDA)

[date of final clearance by Bank and IMF senior management]

Updated February 24, 2009