Preliminary Thoughts on BER and Equity SIMON WHITE 29 September 2016

Preliminary Thoughts on BER and Equity: Jobs, Poverty, Skills Set and Geographic Focus NAO ‘3E Guidance’: Economy Efficiency Effectiveness DFID addition: Equity ICAC: equity is about “ensuring that the benefits are distributed fairly”.

Growth to benefit the poor Equity is often treated as a sub-set of the VfM effectiveness criterion. Equity is a cost driver – it increases programme costs. VfM can encourage a focus on easy-to-reach groups rather than riskier targets, such as those in harder-to-reach areas, minority groups and others. BER and inclusive growth –– focusing on the: Pace of growth Pattern of growth

Dimensions to VfM Equity Measurement Gender: Disaggregating data (firm creation, employment) Sectors where women are highly represented Addressing power imbalances (based upon sound gender analysis) Informal economy: Formalisation and increased productivity of informal firms Formalisation and improvement of working conditions and arrangements Spatial: Measuring results of reforms affecting spatial pockets of poverty and determinants of poverty based on location (e.g., land tenure) Sector: Measuring results in sectors where poor women and men are highly represented

DFID Strategic Framework for Economic Development for Shared Prosperity and Poverty Reduction Enabling environment for private sector growth (1of 5 pillars). Seven areas of focus: Stable macroeconomic environments conducive to growth Open and inclusive economic institutions Better conditions for infrastructure investment Tax policy and tax administration reforms Trade policy Financial sector reforms Integration of the effects of climate change and the value of natural capital into economic decision-making Little guidance on achieving equity through growth within these broad focus areas. VfM equity can provide a clearer focus on how this is achieved.

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