Poverty and Social Impact Analysis – Distributional Issues in Policy Reform. Renate Kirsch Nairobi, Dec 2006. This presentation. Where does it come from What is it and what does it try to achieve How it has been applied in Africa How is relates to the PRSP How it is used at the World Bank
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Nairobi, Dec 2006
To inform the design of reforms:
To inform the policy dialog:
Selection of reform for PSIA
Risk of becoming a box ticking exercise if not owned and demanded by national stakeholders
New GOG electricity pricing policy with automatic increases + lifeline protection for the poor; request from GOG to evaluate the poverty impact of reform.
Focus of PSIA
(1) Inform PRSC2 on whether lifeline tariff policy an effective mechanism to protect poor consumers; (2) assess if subsidies an effective means of reaching the poor;
Tools and methods
(1) Consumer and social impact assessments of tariff changes (small-scale household surveys); (2) analysis of nationally representative study on consumer response; (3) stakeholder analysis; (4) social risk analysis /w key informant interviews + focus groups.
Multi-stakeholder steering committee – with diverse interests – to guide process.
(1) Confirmation of PRSC1&2 reliance on a lifeline to protect poor consumers; (2) discredited assumptions of the reform; (3) lending approved to include off-grid and renewable energy options appropriate for poorer Northern regions.
Retrenchment of 50% of employees of bankrupt state mining company, potential for future privatization to grant foreign investors access to mineral resources + revitalize sector.
Focus of PSIA
(1) Analysis of direct/indirect social costs of reform and monitoring framework; (2) initial focus on impact of retrenchment but subsequently highlighted broader set of issues (e.g. differential impact for remote areas, impacts on those highly dependent on mine services).
Tools and Methods
(1) Stakeholder analysis; (2) social impact analysis using existing baseline data; (3) participatory focus groups in each town; (4) supplementary module on vulnerability/social capital integrated into exit survey for retrenchees.
(1) Collaboration with local university, incl. TOT; (2) local multi-stakeholder consultative groups; (3) substantial dialogue; (4) design of mitigation mechanisms for most severe impacts.
(1) Assistance to keep 50,000 students in school in order to keep teachers from striking; (2) ongoing dialogue with sectors on mgt options for schools and clinics; (3) creation of local-level information centers; (4) proposal for ring-fenced social services in mine policy paper; (5) local level consultative committee formed to bring in broad set of stakeholders; (6) raised awareness with other active partners (UNICEF) and other stakeholders on severe impacts of reform
PSIA an important analytical underpinning of PRS
Implementation of reforms
TA in Policy Reform
Lending andPolicy Dialogue
Program andPolicy Level
Economic & SocialAppraisal
but considerable variation ($40,000 - 200,000)
1. Selecting the Reform
2. Identifying stakeholders
3. Understanding transmission channels
4. Assessing institutions
5. Gathering data and information
6. Analyzing impacts
7. Enhancing design and compensatory schemes
8. Assessing risks
9. Establishing monitoring and evaluation systems
10. Fostering policy debate and feedback into policy choice