1. PSIA and the World Bank Anis Dani & Stefano Paternostro
DFID-DGIS workshop of bilaterals on PSIA, The Hague, Oct 13-14, 2003

2. What do we mean by PSIA? What is PSIA? PSIA is not new
An approach to the analysis of the impacts of policy reforms on the well-being (income and non-income dimensions) of different groups, especially the poor.
PSIA is not new
PRSP impetus for more systematic analysis of poverty and social impacts of associated reforms
Gradually extending to IBRD countries as well
PSIA: responsibility of Borrowing countries
Bank and others assist LICs in undertaking PSIA for reforms we support

3. Scaling up PSIA work PSIA work expanding rapidly
TF pilots: 6 in FY02, 5 more in FY03
Incremental BB-funds: 15 mini-PSIA in FY03, and 37 PSIA in FY04
PSIA increasingly integrated as an approach in poverty assessments and other core ESW
Total 71 identifiable PSIA activities ongoing, of which 62 are in PRSP countries
PSIA ongoing in 43 countries, of which 38 are PRSP countries
But much more needs to be done to mainstream PSIA in borrowing countries

4. PSIA in the Regions

5. PSIA Sectors: All countries

6. Lessons from sectoral PSIA
Utility tariff reforms
Tariff reforms to recover cost-of-service can have adverse impacts on poor and increase risk of non-payment
Issues: pace, quality and sustainability of reform
Agricultural reforms
Restructuring of state monopolies needs to be balanced against food security concerns
Issues: weak institutions, poor agri. Infrastructure, subsidies in industrialized countries
Enterprise restructuring
Design of mitigation measures for laid off workers needs to be balanced by impact on regional economy, especially in mono-industrial areas

7. Lessons from Bank experience
PSIA more feasible for individual reforms than for entire reform program
Reforms identified by PRSP process and included in PRSC
Ownership created through consultation on reform priorities, e.g. Cambodia
Flexibility needed: tools and methods based on context but multi-disciplinarity helps
Dilemma: Short-term results easier to analyze, many positive impacts have longer time horizon
Forward-looking elements (M&E, policy dialogue) help to overcome limits of ex-ante PSIA
Criteria for selection of reforms:
Expected magnitude of distributional impact
Significance in reform program
Timing and urgency of reform
Level of controversy
Country teams encouraged to consult with government, donors and other stakeholders, e.g. Cambodia

8. Collaboration with donor partners
Phase One:
DfID Pilots,
Collaborative PSIA with GTZ (Malawi, Cambodia, Armenia)
Coordinated parallel activities (KfW Ghana, DfID Uganda)
Phase Two:
Staff secondments: DfID, Norway
Framework for collaboration with GTZ
Framework for collaboration with IMF
PSIA website with access to PSIA User’s Guide, toolkit, country cases, etc.

9. Issues for discussion
Potential of PSIA to inform donors’ own analytical agenda and policy dialogue
Options for partnership in PSIA for PRSC/PRGF
Collaborative PSIA
Staff secondments
Structured partnership with research organizations
Single or multi-donor trust funds
Coordinated donor effort to build country capacity for PSIA