Development and Poverty Reduction
Reconciling the financing needs for national development and poverty reduction strategies and debt sustainability is a crucial aim of debt strategy analysis. In particular it is useful to look not only at the baseline spending scenario but also to consider alternative optimistic or pessimistic cases and their implications for resource mobilisation and debt sustainability.
The methodology designed by DFI for analysing and projecting poverty spending strategies can be easily applied to development strategies.
For a practical guide on how to do this, please see Modelling Poverty Reduction.
To help governments prepare baseline and alternative scenarios, DFI has developed detailed training materials and manuals, conducted research and analysis and provides advisory services.
