Country level analysis for poverty reduction Making macro social analysis work for policy dialogue, Washington, 16-19 May 2006 Country level analysis for poverty reduction current thinking at the Swedish International Development Cooperation Agency, Sida Esse Nilsson, Policy and Methodology, Sida HQ

Why analysis? The link between Sida’s three roles: Analyst = to have the knowledge and understanding, in order to be an effective Dialogue partner Financier

Poverty analysis because: Poverty is multi-dimensional, need for broad analysis Causes are complex, need for in-depth analysis Poverty is context specific, analysis has to be context-specific

How, who and when? Support and draw on in-country analysis Analysis as a collaborative exercise Fill knowledge gaps and ensure sufficient quality and relevance Feed into PRS and similar processes Feed into our own strategy processes

The Policy for Global Development, PGD (2003) Goal: To help create conditions that will enable poor people to improve their quality of life. The rights perspective Poor people’s perspectives on development Together with the goal, to be seen as points of departure for all development cooperation. They supplement each other, are partly overlapping, and should be regarded within one context.

This means: Sharpened focus on poverty The individual in focus The needs, interests and conditions of the poor are to be placed in focus and that the rights of people in general will constitute a basis for development cooperation Poor women, men, girls and boys seen as active stakeholders in their own development, they have rights and voice

Four guiding principles - with emphasis on processes: Participation Non-discrimination Transparency Accountability

The Paris Declaration on aid effectiveness New aid architecture New aid modalities Concentration Harmonization Alignment Results

Country level analysis for poverty reduction Multidimensional with a focus on the individual, consisting of: Integrated economic analysis (IEA) Social analysis Political or power analysis Environment, gender, conflict, HIV/AIDS aspects to be integrated in the above, although separate analyses may also be needed. Composition of analyses should be determined by the context.

Integrated economic analysis: Development dynamics (pro-poor growth) Employment market Macro economic framework Business environment Binding constraints (change over time, context specific)

Social analysis Mapping and analysis of the social landscape: Social structures and processes, stakeholders and actors Social organisation, social groups, norms, values and attitudes Social and cultural belief systems underlying the social organisation Social dynamics (social inclusion or exclusion, social mobility), migration Rights relevant to poor people’s own realities (RBAs) Safety networks – social protection Assets and resources of the poor, skills, resources and coping mechanisms The relation between the formal and informal worlds, markets and how diverse groups of poor participate – or not Links between global and local structures and how poor people relate to these

Power analysis (political analysis) Process: in-country process has a value Politics: dynamics, HR situation, informal and de-facto Production: support and develop local capacity Perspectives: rights and poor people’s perspectives Programmes: application of the learning

The common denominator?? Binding constraints The individual person Employment Other?? Work in progress: Poverty analysis, phase two.