Harmonising Ex ante poverty impact assessment International Forum on Poverty Reduction On Good Practices November 2006 Solveig Buhl, GTZ

A harmonised ex ante Poverty Impact Assessment (PIA) is required The new challenges are Harmonization Alignment Accountability Management for Development Results Increasing effectiveness

The Task Team within DAC POVNET Group founded in 2005 to develop harmonised and easy to use approach to (ex ante) poverty impact assessment Participants: DAC/OECD, France, Germany, Japan, Netherlands, UK, Sweden, Switzerland, USA, Ireland, Finland (plus consultations with partner countries) Report “Harmonizing ex ante Poverty Impact Assessment” approved by DAC in March Pilots by several donors in 2006 Guide to PIA will be submitted to POVNET in November 2006 and soon be published

Basic properties and level of application Can cover most interventions (policy, programmes, projects, NOT budget support) Based on existing approaches, e.g. PSIA, capability framework Use of existing data and analyses Relatively simple, flexible approach, providing 5 modules with matrices

Assess Improvements to MDGs plus Assess Enhancement to capabilities Determine transmission channels Analyse Institutions & Stakeholders Determine & Design Interventions Country Assistance StrategiesNational Strategies / Plans RESULTSCHAINRESULTSCHAIN PIA Modules MDGs Risks PIA Framework and modules Information quality and gaps

PIA is a flexible approach PIA should be embedded in ongoing planning and appraisal process: can be part of comprehensive planning document or constitute separate report PIA can be carried out by interdisciplinary team or as a desk study – should never degenerate into a mere box ticking exercise Time needed varies between 2 days and 2-3 weeks can also be used - in slightly modified way – for assessment during or after implementation

The improved understanding of the planned interventions serves several purposes To summarise, PIA allows to identify interventions with high poverty reduction and pro-poor growth impact improve design of proposed intervention identify existing information and information gaps identify monitoring needs Increased transparency, accountability and dialogue Reduces burden on partner countries Clearly in line with Paris Declaration!

Next steps and challenges for the future Dissemination of lessons learned and continuous learning Up-scaling of the approach Increased involvement of partner countries Capacity development

THANK YOU! For further information Promoting Pro-Poor Growth: Harmonising Ex Ante Poverty Impact Assessment The Guide to Ex Ante Poverty Impact Assessment will be published soon!

Module 1: Poverty situation and relevance to national strategies and plans General poverty situation in country / region / area Existing national strategies / programmes relevant to the intervention Short description of the intervention and how it aligns to national programmes

Stakeholders / intermediaries Main TasksInterests and pro-poor agenda; aspects that might hinder them to have a pro-poor agenda (risks) Rating Company IndiaBuy seedlings and produce bio diesel No particular interest in poverty reduction 0 ICRISATCapacity Development Research & Development Mainly interested in developing viable, sustainable agronomic approach, but also interested in poverty reduction + International company Technology Transfer No particular interest in poverty reduction 0 NGOsOrganising village level groups to ensure equity By mandate interested in poverty reduction and equity issues ++ Module 2: Stakeholder/ Institution Analysis, Example PPP Biofuel

Module 3: Understanding Transmission Channels, example biofuel Transmission Channels Transmission Channels Used Results by Transmission Channel Categories Information Sources Details & RisksShort term Medium term Details & Risks Prices + Market might fluctuate Employment Transfers Access + Authority + Assets ++

Module 4: Outcomes related to capabilities, example biofuel Outcomes in terms of capabilities Detail & risks Inform- ation sources Mitigation or reinforcing measures EconomicHumanPolitical Socio- cultural Protective Security Stake- holder Groups short term medium term short term medium term short term mediu m term short term medium term short term medium term Land owning poor (with large proportion of waste land) ++++ Landless poor members of SHGs (90% women) ++

Module 5: Understand impacts at aggregated level, example biofuel Strategic Development GoalsImpactsDetails & Risks Information Sources MDG 1. Eradicate extreme poverty and hunger+ MDG 2. Achieve universal primary education MDG 3. Promote gender equality empower women +If SHG are supported Interviews with … MDG 4. Reduce child mortality MDG 5. Improve maternal health MDG 6. Combat HIV/AIDS, malaria, other diseases MDG 7. Ensure environmental sustainability Pro Poor Growth Protecting the vulnerable Peace, Security, Disarmament Human Rights, democracy and good governance Protecting the common environment+marginal