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Political Economy Challenges and Strategies in Governance

Understand the complexities of political calculations and policymaking, address conflicting objectives, and implement comprehensive reform agendas within the governance framework. Learn from research studies and stakeholder consultations to enhance policy dialogue and decision-making processes. Lessons learnt underscore the importance of political economy considerations in program design and implementation.

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Political Economy Challenges and Strategies in Governance

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  1. Strategic Response to Political Economy Addis, June 6, 2007

  2. Politics Matters Politics is a complex game of strategic calculations. Politicians often face the so-called “politicians’ dilemma” in deciding among a set of policy preferences

  3. Politician’s Dilemma Conflicting Objectives: • To survive in office; to build a loyal political organization—no suicide • To govern effectively & efficiently

  4. Harmonisation Framework

  5. Challenges • Reforms are not only technical = embedded in larger political, cultural, social and economic context • How to put in place strategies that take into account how power is exercise • Mkukuta cluster 3 = governance recognizing that it is the bedrock to the other two pillars on growth and social services

  6. Reform agenda (National Framework for Good Governance) • PFMRP • PSRP • LGRP • LSRP • NACSAP Together constitute very ambitious and comprehensive restructuring of the state.

  7. GWG Research Agenda • WB -- Political Economy, Anti-Corruption, Political Finance, Pay Reform studies • DFID – Drivers of Change/Patterns of Accountability State Weakness – Operational Policy for Anti-Corruption • Norway – Governance and Corruption in Tanzania; sector-specific (natural resources) • SIDA – A Power Analysis of Tanzania (2005) Monitoring Power in Tanzania (Update) (2007) • USAID – Assessment of Democracy and Governance Use • Synthesis paper of above has been prepared • Workshops have been conducted for donors, public servants and civil society

  8. How to use the findings • For policy dialogue • For programme choice and design • For risk management • General budget support • Sector support

  9. Design ATIP Understand decisions on to pay Advent of new government – understand challenges and opportunities and prepare a CAS that would build on the knowledge Assessment of political context of reforms + stakeholders consultation Tanzania included in a broader study Political economy of Tanzania World Bank’s Response

  10. Lessons Learnt • Realisation of importance of PE context • Need to take into consideration in design of programs (sectoral too) • Technical expertise to do PE • Standard part of training program • Easy to do PE in a country where governance is relatively positive • Issue: what to do when the environment is less conducive?

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