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Forum for the Future of Aid

Southern Voices for Change in the International Aid System Project

The Forum on the Future of Aid is an online community dedicated to research and opinions about how the international aid system currently works and where it should go next

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Assessing the Impact of the PRGF on Social Services: The case of Zambia

Source: AFRODAD

Research findings in Zambia suggest that IMF policies are still based on rather arbitrary macroeconomic targets, failing to move from short-term stabilization programmes to long-term poverty reduction strategies. While findings suggest that expenditures for education and health have increased relatively within the budgets, stringent inflationary targets, lacking policy space and fiscal flexibility restrict governments from making real progress towards the MDGs. The control of wage ceilings has eroded meaningful wages and in some cases added to the rates of unemployment.

This case study on Zambia raises a number of concerns. The overall picture suggests that the above areas require attention from the architects of the PRGF as well as to the implementing governments. Allowing for meaningful public dialogue in the PRGF process and integrating poverty indicators in the assessment of PRGF performance is key.

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