This document discusses stakeholder analysis, which is an important component of logical framework analysis for project identification and selection. It defines stakeholders as individuals or groups that can affect or be affected by a project. The key steps in stakeholder analysis are: 1) Identifying relevant stakeholders, categorizing them as primary, secondary or external. 2) Analyzing their roles, interests, power and ability to participate. 3) Assessing cooperation and conflicts among stakeholders. 4) Incorporating findings into project design. Stakeholder participation is important and brings benefits like empowerment, but must be implemented carefully through consultation rather than coercion.