Analyzing the Effects of Policy Reforms on the Poor
114 Pages
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Analyzing the Effects of Policy Reforms on the Poor


YouScribe would like you to have this content free of charge
114 Pages


This IEG evaluation, requested by the World Bank's Board of Executive Directors, represents the first independent evaluation of the PSIA experience.
The evaluation finds that:
▪ The PSIA approach has appropriately emphasized the importance of assessing the distributional impact of policy actions, understanding institutional and political constraints to development, and building domestic ownership for reforms
▪ PSIAs have not always explicitly stated their operational objectives (i.e., informing country policies, informing Bank operations, and/or contributing to country capacity)
▪ PSIAs have had limited ownership by Bank staff and managers and have often not been effectively integrated into country assistance programs
▪ Quality assurance and Monitoring and Evaluation of the overall effectiveness of PSIAs have been weak
The evaluation recommends that the World Bank:
▪ Ensure that Bank staff understand what the PSIA approach is and when to use it
▪ Clarify the operational objectives of each PSIA and tailor the approach and timeline to those objectives
▪ Improve integration of the PSIA into the Bank's country assistance program by requiring that all earmarked funding for PSIAs be matched by a substantial contribution from the country unit budgets
▪ Strengthen PSIA effectiveness through enhanced quality assurance


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Published 05 May 2010
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Analyzing the Effects
of Policy Reforms on the Poor
An Evaluation of the Effectiveness of World Bank orld Bank
Support to Poverty and Social Impact AnalysesTHE WORLD BANK GROUP
The World Bank Group consists of five institutions—the International Bank for Reconstruction and Development
(IBRD), the International Finance Corporation (IFC), the International Development Association (IDA), the
Multilateral Investment Guarantee Agency (MIGA), and the International Centre for the Settlement of Investment
Disputes (ICSID). Its mission is to fight poverty for lasting results and to help people help themselves and their
environment by providing resources, sharing knowledge, building capacity, and forging partnerships in the public
and private sectors.
The Independent Evaluation Group (IEG) is an independent, three-part unit within the World Bank Group.
IEG-World Bank is charged with evaluating the activities of the IBRD (The World Bank) and IDA, IEG-IFC focuses on
assessment of IFC’s work toward private sector development, and IEG-MIGA evaluates the contributions of MIGA
guarantee projects and services. IEG reports directly to the Bank’s Board of Directors through the Director-General,
The goals of evaluation are to learn from experience, to provide an objective basis for assessing the results of the
Bank Group’s work, and to provide accountability in the achievement of its objectives. It also improves Bank Group
work by identifying and disseminating the lessons learned from experience and by framing recommendations drawn
from evaluation findings.Analyzing the Effects
of Policy Reforms
on the Poor
An Evaluation of the Effectiveness
of World Bank Support to Poverty
and Social Impact Analyses
The World Bank
Washington, D.C.©2010 The International Bank for Reconstruction and Development/The World Bank
1818 H Street NW
Washington DC 20433
Telephone: 202-473-1000
All rights reserved
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This volume is a product of the staff of the International Bank for Reconstruction and Development/The World Bank. The findings, interpretations,
and conclusions expressed in this volume do not necessarily reflect the views of the Executive Directors of The World Bank or the governments
they represent.
The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other informa-
tion shown on any map in this work do not imply any judgement on the part of The World Bank concerning the legal status of any territory or the
endorsement or acceptance of such boundaries.
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The material in this publication is copyrighted. Copying and/or transmitting portions or all of this work without permission may be a violation of
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All other queries on rights and licenses, including subsidiary rights, should be addressed to the Office of the Publisher, The World Bank, 1818
H Street NW, Washington, DC 20433, USA; fax: 202-522-2422; e-mail:
Cover: A student at the public primary school Alvaro Contreras in Tegucigalpa, Honduras. Photo by Alfredo Srur, courtesy of the World Bank Photo
ISBN-13: 978-0-8213-8293-6
e-ISBN-13: 978-0-8213-8294-6
DOI: 10.1596/978-0-8213-8293-6
Library of Congress Cataloging-in-Publication data have been applied for.
World Bank InfoShop Independent Evaluation Group
E-mail: Communications, Learning and Strategy
Telephone: 202-458-5454 E-mail:
Facsimile: 202-522-1500 Telephone: 202-458-4497
Facsimile: 202-522-3125
Printed on Recycled PaperContents
v Abbreviations
vii Acknowledgments
ix Foreword
xi Executive Summary
xvii Management Response
xxi Chairperson’s Summary: Committee on Development Effectiveness
1 1 Introduction
4 What Is a PSIA?
4 Recent Status
6 Evaluation Objectives and Rationale
7 Evaluation Scope, Questions, and Building Blocks
9 2 Overview of PSIAs
11 Numbers and Costs
11 Objectives
12 PSIA Practice versus Initial Concept
15 3 PSIA Effect at the Country Level
17 Effect on Country Policies
24 Contribution to Country Capacity for Policy Analysis
27 4 PSIA Effect within the Bank
29 Effect on Bank Operations
30 Effect on Thinking and Practice across the Bank
33 Recent Developments
35 5 Lessons and Recommendations
37 Lessons
39 Recommendations
41 Appendixes
43 A PSIA Timeline
45 B Universe of Bank-Funded PSIAs
51 C Methodology
57 D Description of PSIA Effects—Country Case Reviews
69 E Semistructured Stakeholder Interviews—Summary of Results
71 F Portfolio Review Tables
77 Endnotes
81 Bibliography
xii ES.1 What Is a PSIA?
5 1.1 World Bank Guidance on PSIA
6 1.2 Institutional Requirement Contained in Operational Policy 8.60
Relating to Assessing Poverty and Social Consequences of Reforms
18 3.1 Criteria to Assess PSIA Effect on Country Policies
19 3.2 Factors in the Success of the Cambodia Land Reform PSIA
22 3.3 Republic of Yemen Water PSIA: Participation by Government, Other
Local Stakeholders, the World Bank, and Other Donors
25 3.4 Criteria to Assess PSIA Contribution to Country Capacity
30 4.1 Criteria to Assess PSIA Effect on Bank Operations
31 4.2 Corporate Benefits Identified by PSIA Proponents
12 2.1 Regional and Sectoral Breakdown of PSIAs
ADMARC Agricultural Development and Marketing Corporation (Malawi)
CAS Country Assistance Strategy
CPA Chittagong Port Authority (Bangladesh)
DFID Department for International Development (United Kingdom)
DPL Development Policy Loan/Lending
ESW Economic and sector work
GTZ German Agency for Technical Cooperation
IEG Independent Evaluation Group
IMF International Monetary Fund
LASED Land Allocation for Social and Economic Development (Cambodia)
NGO Nongovernmental organization
OP Operational Policy
OPCS Operations Policy and Country Services
PREM Poverty Reduction and Economic Management Network
PRSP Poverty Reduction Strategy Paper
PSIA Poverty and Social Impact Analysis
SAM Social Accounting Matrix
SDN Sustainable Development Network
vChildren with their mothers in Bhutan. Photo by Curt Carnemark, courtesy of the World Bank Photo Library.Acknowledgments
This report was prepared by a team led by Soniya background work. Pedro Alba, Jeffery Hammer,
Carvalho. The core team included Joan Nelson, and Howard White were peer reviewers. Victoria
Manuel Penalver, and Morgan Rota. Catherine Elliott provided comments. William Hurlbut
Gwin conducted interviews with senior Bank edited the report and provided document
staff and managers, and Shonar Lala interviewed production support. Heather Dittbrenner edited
in-country stakeholders and Bank task managers the report for publication. The team was assisted
and task team members. Country case reviews by Romayne Pereira. Juicy Zareen Qureishi-Huq
were undertaken by Jeffrey Alwang, Jaimie Bleck, provided administrative and production support.
Anthony Killick, Shonar Lala, Anne Pitcher, Sylvia Financial support from the Norwegian Agency for
Saborio, and Jan Kees van Donge. Jabesh Amissah- International Development (Norad) is gratefully
Arthur, Happy Kayuni, and David Korboe contrib- acknowledged.
uted to the country case reviews. Domenico
Lombardi reviewed donor collaboration in The report was initiated under the direction of
Poverty and Social Impact Analyses. Danielle Alain Barbu, former Manager, Sector Evaluations,
Resnik and Morgan Rota undertook the portfolio and completed under the direction of Monika
review, and Melvin Vaz contributed to it. Antine Huppi, Manager, Sector Evaluations, Indepen-
Legrand and Shampa Sinha contributed to other dent Evaluation Group.
Director-General, Evaluation: Vinod Thomas
Director, Independent Evaluation Group – World Bank: Cheryl Gray
Manager, Independent Evaluation Group, Sector Evaluations: Monika Huppi
Task Manager: Soniya Carvalho
viiBoys in Nigeria. Photo by Curt Carnemark, courtesy of the World Bank Photo Library.