São Tomé and Principe’s economy is heavily dependent on the international economy. The study assessed the country's macroeconomic, structural, and social policies in support of growth and poverty reduction. The implementation of the National poverty reduction strategy (NPRS) through People's Action Party (PAP) made some progress with the help of reforms implemented through government incentives. PAP envisages political measures, legislative and regulatory actions, restructuring and reorganization of government agencies, and Public Investment Program (PIP) for the different pillars of the NPRS. The study assessed that successful implementation of NPRS requires stability, real ownership of NPRS, and consistency between PIP and PAP.
International Monetary Fund. External Relations Dept.
Earlier this year, Abdoulaye Bio-Tchané took over as Director of the IMF’s African Department. Before joining the IMF staff, he was Benin’s Minister of Finance and Economy. He began his career as an economist in the Central Bank of West African States (BCEAO), where he rose to become Director of the Economic and Monetary Survey Department. He recently returned from a one-week trip with IMF Managing Director Horst Köhler to Burkina Faso, Côte d’Ivoire, Democratic Republic of the Congo, Ghana, and Tanzania. At the end of the trip, on May 3, Köhler announced that the IMF plans to establish five regional centers in Africa to strengthen locally based technical assistance and training.
In most developing countries, poverty is more widespread and severe in rural than in urban areas. The author reviews some important aspects of rural poverty and draws key implications for public policy. He presents a policy framework for reducing poverty, taking into account the functional differences and overlap between the rural poor. Several policy options are delineated and explained, including stable management of the macroeconomic environment, transfer of assets, investment in and access to the physical and social infrastructure, access to credit and jobs, and provision of safety nets. Finally, some guideposts are identified for assessing strategies to reduce rural poverty.