Session 2.2          Introduction toPolitical Economy Analysis (PEA)
Session’s objective1. Why is there so much interest in Political   Economy Analysis?2. What is PEA all about?3. What are t...
1. Why is there so much interest in  Political Economy Analysis?
Despite the efforts and resourcesdirected to supporting governanceand institutional reform, resultshave been mixed and som...
Do we know our context?
Are intervention and support strategies adapted?
Governance    • Governance clusters: clusters       democracy, human rights,                rule of law, decentralisation ...
2. Opening the black box: PEA, what  is it about?
Some considerationsPolitical economy analysis:•  Is not an exact science•  Draws from various intellectual backgrounds•  T...
What is PEA interested in?                         •  Political process: power                            relations and st...
Make the iceberg visible                           11
A few tools           Drivers of change (DFID)     Strategic Governance and Corruption           Assessment (Netherlands...
Tools for analysing governance in sectors                               Political system/                               go...
DEVCO CONCEPT NOTE ON PEA                             History                       (structural elements)   INSTITUTIONS  ...
EXPERIENCES PEA   Zambia PEA   Mozambique PEA   Cameroon/public expenditures PEA   Senegal PEA   planned in Guinea Co...
3. Preliminary conclusions and  implications for donors
How can PEA be useful?  Identify actors, pathways of change, alliances and   coalitions  Translate analysis into politic...
The general concept of Political Economy Analysis and its gradual uptake by the EU (with reference to devco note) by ECDPM
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The general concept of Political Economy Analysis and its gradual uptake by the EU (with reference to devco note) by ECDPM

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Advanced EC seminar on decentralisation and local governance
European Commission EuropeAid
2-5 July 2012, Brussels
The seminar reviewed the country context and the evolving international development framework and considered how to manage the political dimensions of decentralisation. It also looked at using decentralisation as a trigger to foster better development outcomes and governance and what all this means for future EU engagement in decentralisation and local governance. Jean Bossuyt, ECDPM, was the lead facilitator of this meeting. Alisa Herrero, ECDPM, was also one of the experts facilitating this seminar.

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The general concept of Political Economy Analysis and its gradual uptake by the EU (with reference to devco note) by ECDPM

  1. 1. Session 2.2 Introduction toPolitical Economy Analysis (PEA)
  2. 2. Session’s objective1. Why is there so much interest in Political Economy Analysis?2. What is PEA all about?3. What are the preliminary conclusions of these analyses and are there implication for donors?
  3. 3. 1. Why is there so much interest in Political Economy Analysis?
  4. 4. Despite the efforts and resourcesdirected to supporting governanceand institutional reform, resultshave been mixed and sometimeseven disappointing….
  5. 5. Do we know our context?
  6. 6. Are intervention and support strategies adapted?
  7. 7. Governance • Governance clusters: clusters democracy, human rights, rule of law, decentralisation …Governance principles • Governance principles: transparency, accountability, participation, inclusion Coregovernance • Core governance issues: issues rules of the game, interests, power, incentives OPEN THE BLACK BOX
  8. 8. 2. Opening the black box: PEA, what is it about?
  9. 9. Some considerationsPolitical economy analysis:•  Is not an exact science•  Draws from various intellectual backgrounds•  There is no single universal methodology•  Different tools analyse same object by asking structured questions•  Can be applied at three levels: country/macro, sectoral/thematic and project/micro
  10. 10. What is PEA interested in? •  Political process: power relations and struggles around resources Interaction •  Economic process: how the between political generation of resources influence and economic political processes processes •  Evolution and dynamics of these processes in time •  Formal and informal•  Why? institutions•  How to support •  The hidden relations, change? motivations and interests of all the actors
  11. 11. Make the iceberg visible 11
  12. 12. A few tools   Drivers of change (DFID)   Strategic Governance and Corruption Assessment (Netherlands)   Power Analysis (SIDA)   Democratic Governance Assessment (US)   Sector governance et DEVCO Concept Note (EC)
  13. 13. Tools for analysing governance in sectors Political system/ government Rule making and executive actors at Context different levels Checks and balances Non-state actors organisations Citizens, voters, Core public agencies Supervise sector consumers, user groups Sector ministries, organisations or handle economic agents, elites, agencies with regulatory complaints (auditors, media… or supporting roles, … judiciary, ombudsmen,…) Frontline service providers Donors, Public and private international providers delivering organisations services Influence on sector governance and Governance accountability relations 14 14 Accountability
  14. 14. DEVCO CONCEPT NOTE ON PEA History (structural elements) INSTITUTIONS HERE and NOW (political competition) (the formal and informal 15 rules of the game)
  15. 15. EXPERIENCES PEA Zambia PEA Mozambique PEA Cameroon/public expenditures PEA Senegal PEA planned in Guinea Conakry and Laos
  16. 16. 3. Preliminary conclusions and implications for donors
  17. 17. How can PEA be useful?  Identify actors, pathways of change, alliances and coalitions  Translate analysis into politically savvy strategies and support programmes,  Assess risks of achieving results (or not), particularly policy outcomes  Efficient dialogue with different actors, especially the government  “compelling narrative”  Aid effectiveness  Development effectivenessBUT ARE WE READY/ABLE TO USE PEA ???
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