PARPA 2 - PSD

The Trade and Investment Project worked closely with the Private Sector Working Group (PSWG) and the Government of Mozambique to evaluate the private sector indicators of PARPA II and make recommendations for new private sector indicators for PARPA III.

The Government of Mozambique has made the reduction of absolute poverty its key priority. The strategy to attain this goal is enshrined in the Action Plan for the Reduction of Absolute Poverty - II (PARPA II), which sets out the Government's 5 year plan. The PARPA is implemented through the annual Economic and Social Plan (PES), which is evaluated annually through the Balanço do Plano Economico e Social (BdPES).

The commitment of the Government of Mozambique to adopting and effectively implementing a series of well articulated policies aimed at poverty reduction is supported by international development aid partners.

In Mozambique 19 donors are committed to supporting the PARPA. Since 2000, one of the most important donor groupings for promoting government ownership, alignment and harmonization of the Program has been the group of donors providing budget support. Over that time the group has grown considerably in size and has sought to develop procedures that allow it to effectively support the Government of Mozambique's poverty reduction strategy.

The Performance Assessment Framework (PAF) is a monitoring framework that includes specific indicators and benchmarks by which to measure government performance. Progress against these indicators influences the decisions taken by donors regarding commitments for budget support for the following year.

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