Policy Support and Signaling in Low-Income Countries

Prepared by the Policy Development and Review Department
In consultation with other Departments

June 10, 2005

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Executive Summary
  1. Introduction
  2. Fund Support of Low-income Countries Which do not Need, or Want, its Financial Assistance
    1. General Considerations
    2. A New Instrument: The Policy Support Instrument (PSI)
      Program Standard
      Policy COntent
    3. Relation of the PSI with Fund Financial Arrangements
      The PSI and the PRGF "shocks window"
      The PSI and the PRGF
  3. Filling Information Gaps: The Case of Low-income Countries with a PRGF Arrangement or a PSI
  4. Staff Resource Implications
  5. Next Steps
  6. Issues for Discussion


  1. Fund Signals, Aid Volatility, and Uncertainty
  2. Main Features of the PSI


  1. Survey Results and Methodology
  2. Survey Respondents