Poverty and Social Impact Analysis
An Introduction
Ambar Narayan
PREM Poverty Reduction and Equity Group
April 25, 2011
Poverty and Social Impact Analysis
• Approach to analyze impact of policies on well-being of different social groups,
especially poor and vulnerable
• Supports ex ante evidence based decision making, may include monitoring and ex post
analysis as well
• What distinguishes a PSIA from other analytical work
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Focus on impact of policy reforms, as opposed to a more general analysis of country/sector
Informing policy dialogue in a tangible way, such as influencing policy design to minimize
adverse impacts on vulnerable groups, suggesting mitigating mechanisms
Can help build support for politically sensitive reforms by building evidence, generating
consensus, and bringing together diverse stakeholders
A focus on institutions and how they affect policy implementation –as appropriate
All of these features need not be present in every PSIA, rather the scope of the exercise
should be guided by the country and policy context, and sometimes by the time and
resources available
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The institutional requirement: DPOs and PSIA
• According to OP 8.60, DPO program documents should specify
which policies may have significant poverty and social
consequences, particularly on poor and vulnerable groups
• For policies with significant consequences, the program document
(PD) should have:
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Analysis and summary of the effects, borrowers’ systems for
managing them
– Or, summary of action plan to conduct analysis before operation
goes to the Board for approval
• Analysis of social and distributional impact of reforms should be
available to public in line with the World Bank disclosure policy
But DPOs represent only one of the many contexts
where PSIA has a role
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Selection of instruments or tools for analysis
• Three broad analytical choices for PSIA:
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A “quick and dirty” approach for just-in-time policy advice
2.
A more in-depth, comprehensive analysis
3.
An incremental approach, with a rapid analysis leading to a more
comprehensive assessment
• Combining tools and multidisciplinary approaches may be optimum
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Choice of tool should be made after considering country and policy
environment, type of reform, available time and resources
• Helps to disaggregate analysis by different income groups, ethnicity,
gender, religion, and geographic location
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Institutional priorities to improve PSIAs
(Emerging from SDV, PRMPR, and IEG reviews)
• Context specific PSIA approach
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Wider awareness and use of rapid analytical methods, triangulation of
methods (qualitative/quantitative/political economy) when possible
• Awareness, skills, and resources for PSIA
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Raise awareness among staff, access to central/regional funds and
flexibility in regional budgets
• Mainstreaming into the work of operational regions
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Better integrate PSIA into country work programs (e.g. CASs, WPAs),
flag poverty/distributional issues upstream
• Effectiveness of PSIA in informing country policy
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Develop links with country processes and connect findings to policy
actions
Link with country or program M&E systems
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Additional resources to support the work
• Multi-Donor PSIA Trust Fund: USD 19-20 Million fund over 3 years, supported
by Norway, UK, Germany, Netherlands and Switzerland
• Objectives:
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Support effective use of PSIA in guiding WB’s policy dialogue and lending
Strengthen country capacity to use PSIA to inform national policies
• Anchor stream (10% PRMPR and 10% SDV): to support PSIA agenda by
knowledgement management, dissemination and creating “public goods”
• Innovative decentralized structure with each region managing its own
regional window (80% of funds)
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Regional window manager and focal points manage and implement the
regional window in every region
Region decides on the timing of call for proposals, selection criteria
Cross-sectoral committees set up at each regional VPU to select proposals for
funding
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Resources for PSIA practitioners
www.worldbank.org/psia
• User’s Guide, Good Practice Note, Review papers; PSIA in Practice notes
summarizing good practice examples
• Learning courses
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PREM Learning Week, DPL Academy (OPCS), BBLs
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e-Learning course (under revision)
• Searchable database of completed PSIA (2001 – present)
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Database on PSIA in progress (internal for WB only) under construction
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Database of consultants (internal for WB only) under construction
• PSIA SCOOP Group <community.worldbank.org> or FURL: “psiascoop”
• PSIA teams:
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Anchor : Maitreyi Das, Sonya Sultan, Juan Carlos Osorio, Dorothee Georg (SDV);
Ambar Narayan, Chris Trimble, Noorulain Masood (PRMPR);
Regions: Window manager and at least two more focal points in each region