Monitoring of Poverty Reduction and Economin Growth Program in Georgia

GEO/01/003/08/01
Total budget: 128,460 USD
UNDP Sector: Poverty reduction
Duration: 10 months

Background:

In November 2000, the Government of Georgia adopted the "Interim Poverty Reduction and Economic Growth Program", a document outlining in general terms the contents of the country’s anti-poverty strategy. The final document is expected in October 2001. Although the World Bank and the IMF were leading players during the preparation of the strategy in the framework of PRSP initiative, the process received substantial inputs from UNDP and other donors. Data analyses from earlier NHDRs, including the application of Human Development Index, were tools that received significant weight in describing the poverty situation in Georgia.

The World Bank and some of the major bi-lateral donors are expected to provide the bulk of external funding for the implementation of poverty reduction policies. The United Nations Development Programme has a major role to play as an impartial and technically well-equipped institution, in the monitoring of the impact of Poverty Reduction and Economic Growth Program (PREGP) and in assessing the contribution of its different policy actions towards reduction of poverty. Indeed, it was the government of Georgia the first to support the role of UNDP as it approached the country office with a request to lead a program for the monitoring of the poverty situation. UNDP Georgia has determined that a first and crucial step for a solid monitoring program will be the identification of an agreed baseline situation that includes the direct participation of society in defining this baseline.

The main development objective of the project is to assist the Government of Georgia in monitoring and evaluation of the PREGP and to provide high-level policy advice. This will be achieved through development of baseline poverty situation by means of quantitative and qualitative analysis of data already available and by covering data gaps through conducting a survey. The National Human Development Report 2001 will present the findings and provide a starting point for monitoring changes in poverty levels as well as give analytical advisory overview of poverty reduction strategies world-wide. Finally, a longer-term proposal will be prepared to include a partnership with a well-known research institution in order to elaborate econometric model(s) measuring the impact of PREGP policies on poverty levels. As a result of the project, the Government of Georgia will be equipped with an array of policy options and with tools to monitor poverty reduction policies.

1. Development of a baseline poverty situation against which the PREGP will be implemented.

2. Ensuring the participation of civil society in the poverty reduction efforts from the early stages of monitoring (including the definition of baseline)

3. Provision of advice on specific policy options.

4. Formulation and resource mobilization for a longer-term project on monitoring the implementation of PREGP that would include, in partnership with a renowned research institution, elaboration of econometric model to measure the impact of poverty reduction policies.

1. Definition of a baseline poverty situation for 2001.

2. Specific policy advice to the Government of Georgia

3. A proposal for funding to elaborate an econometric model for longer-term monitoring.