This Joint Staff Advisory Note discusses the Poverty Reduction Strategy Paper (PRSP) for the Democratic Republic of São Tomé and Príncipe. The PRSP-II is the successor to the government’s previous development strategy, the PRSP-I, and furthers the country’s commitment to promoting sustainable poverty reduction through broad-based growth. Overall, the PRSP-II presents a coherent analysis and offers an appropriate policy framework for long-term poverty reduction and sustainable economic growth. The PRSP-II builds on the experience in a number of areas, promoting economic diversification and laying out a set of ambitious but attainable development goals. IMF Staff recommends further work on several critical areas in which the PRSP-II could be strengthened.
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