Vietnam Oks Policy Framework for WB-funded Poverty Reduction Program

The Vietnamese Prime Minister Nov 11 approved a policy framework for the 10th Poverty Reduction Credit Support program (PRSC 10) to serve as a basis for the PRSC-10 negotiations with the World Bank (WB). The negotiation delegation is led by Le Minh Hung, Deputy Governor of the State Bank of Vietnam, the Voice of Vietnam Radio said. PRSC was introduced in Vietnam in 2002 to promote growth and poverty reduction through the use and improvement of policy and budget processes. The WB financed a combined of $1.47 billion for nine programs of PRSC in the country as of late 2010. WB implements PRSC in developing countries with stable macro-economies and reasonable financial management systems. Early this month, Vietnam proposed the Japanese Ministry of Finance to raise the credit for the 10th Poverty Reduction Support Credit (PRSC 10) from JPY3.5 billion to JPY10 billion in the second phase of the 2011 fiscal year. Vietnam reports 3.05 million poor households and 1.61 million near-poor ones, accounting for 14.2% and 7.53% of its total 90-million population, the Ministry of Labor, Invalids and Social Affairs (MOLISA) said. (Thoi Bao Tai Chinh – Financial Times Nov 14 p2, vovnews.vn Nov 12, cpv.org.vn Nov 11)