Trade and Growth in Second Generation PRSs

In a period in which aid (especially to Africa) is rising steadily, it is crucial to manage it efficiently. The main framework for aid management at country level in Africa are the Poverty Reduction Strategy (PRS) processes, which is likely to play a crucial role in determining whether aid is used efficiently. The context in which PRSs are unfolding has changed significantly from the first generation PRSs, with issues such as growth and trade very high in the international agenda. However, the PRSs’ potential for addressing growth and trade remains ill understood. This study analyses to what extent and in what way growth and trade have been incorporated in second generation PRSs and compares it with the existing knowledge on growth and trade in the first generation. It examines growth and trade from the perspective of both policy content and process.