Early political economy analyses were primarily conducted at country level, to support the design of country strategies and programmes. Some of the more widely cited country-level approaches are DFID’s Drivers of Change, the Dutch Foreign Ministry’s Strategic Governance and Corruption Assessment, and Sida’s Power Analysis.
DFID’s Drivers of Change
DFID’s Drivers of Change approach was pioneering in its aim to identify the opportunities, incentives and blockages to pro-poor change at country level. The analysis centred on agents (individuals and organisations pursuing particular interests), structural features (history of state formation, economic and social structures), and institutions (rules governing the behaviour of agents). Numerous Drivers of Change country studies have been undertaken to inform country-level planning and to identify and mitigate risk. Nevertheless DFID evaluations have shown that the influence of Drivers of Change studies on country programming has been rather variable. Some studies have proven more insightful than others in understanding the incentives facing key actors and identifying practical levers for change.
The following briefing notes provide key information about the Drivers of Change approach and its application:
DFID. (2004). Drivers of Change public information note. London: Department for International Development (DFID).
This note outlines the Drivers of Change approach and reflects on the benefits of Drivers of Change studies conducted in 20 country offices.
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DFID. (2005). Lessons learnt – Planning and undertaking a Drivers of Change study (How to Note). London: Department for International Development (DFID).
This note provides guidance on undertaking and using the findings of a Drivers of Change study.
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DFID. (2005). Using Drivers of Change to improve aid effectiveness (Briefing Note). London: Department for International Development (DFID).
This note reflects on the progress of the Drivers of Change approach; synthesising the main findings of the studies and how they have been used, and highlighting gaps and unresolved issues.
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OECD DAC. (2005). Lessons learned on the use of power and Drivers of Change analyses in development co-operation: Final report. Paris: OECD DAC.
This review compares and contrasts different donor approaches to conducting Power and Drivers of Change (DoC) analysis, and looks at what is being done with the findings, in order to learn lessons for future work. It draws mainly on studies conducted in four countries – Bangladesh, Bolivia, Kenya, and Tanzania – as a basis for deriving findings and recommendations for this type of work. There appears to be little consistent policy across and within donors on how to scope the studies, or how to link Power and DoC analysis to work on conflict, gender, social exclusion or human rights.
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DFID’s Politics of Development Framework
The Politics of Development framework emerged partly as a response to the limitations identified in the Drivers of Change approach. It aims to go further in analysing the actors, connections and processes making up a political system.
Leftwich, A. (2007). Drivers of Change: Refining the analytical framework: Conceptual and theoretical issues.
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Leftwich, A. (2007). From Drivers of Change to the Politics of Development: Refining the analytical framework to understand the politics of the places where we work: Final report.
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Dutch Foreign Ministry’s Strategic Governance and Corruption Assessment (SGACA)
The SGACA includes an assessment of: (i) Foundational Factors, which refer to the contextual factors that fundamentally shape the state and political system, including such topics as territorial integrity, geography, social structures and geo-strategic position; (ii) the Rules of the Game, which are the formal and informal institutions shaping the quality of governance, especially for poor people, including topics related to political competition, the distribution of power and state-society relationships; (iii) the Here and Now, referring to the current context for governance and the role of the main actors and stakeholders in driving recent political dynamics; and (iv) Implications for Change, covering operational recommendations.
Unsworth, S., & Conflict Research Unit. (2007). Framework for Strategic Governance And Corruption Analysis: Designing strategic responses towards good governance. The Hague: Clingendael Institute.
This paper describes the Strategic Governance and Corruption Analysis (SGACA) which has been used by the Dutch Ministry of Foreign Affairs to inform country programming across all of the countries where it provides development assistance. SGACA captures the informal, societal and sometimes intangible underlying reasons for the governance situation, which can often differ from the formal configuration of the state. SGACA can improve the design of donor interventions through a better understanding of what happens behind the façade of the state and what really drives political behaviour.
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Sida’s Power Analysis
Sida’s Power Analysis aims to identify where real power in a society lies, how it is distributed and possible conflicts of interests. Sida emphasises that political economy analyses should primarily rely on local expertise.
Sida. (2006). Power Analysis: Experiences and challenges (Concept note). Stockholm: Swedish International Development Cooperation Agency (Sida).
This document argues that an understanding of power relations is critical to understand the factors impeding poverty reduction, as well as the incentives and disincentives for pro-poor development. It reflects on SIDA’s experience of using concepts of power to analyse development problems, the value added and practical impact of this approach, lessons learned and the way forward. It includes a useful annex presenting a checklist of issues and questions that should be included in power analysis.
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Norad
Norad’s approach to political economy analysis includes an analysis of the legitimacy of the state. It provides a way of analysing governance and statebuilding, particularly in situations of fragility.
Moen, E., & Eriksen, S. S. (2010). Political economy analysis with a legitimacy twist: What is it and why does it matter? Oslo: Norwegian Agency for Development Cooperation.
How can a ‘legitimacy lens’ enhance political economy analysis? This guidance introduces political economy analysis as a powerful tool for increasing understanding, and improving the effectiveness, of aid. It argues that consideration of state legitimacy can add value to such analysis by enhancing understanding of what citizens expect from the state, and of how those in control of the state can improve its standing among citizens.
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European Commission
Though it has suspended its use of political economy analysis, the European Commission (EC) had previously trialled an approach largely based on the Strategic Governance and Corruption Assessment (SGACA) tool.
Unsworth, S., & Williams, G. (2011). Using political economy analysis to improve EU development effectiveness (DEVCO Concept Paper). Brussels: European Comission.
This paper provides practical guidance on how to undertake political economy analysis at country and sector level. It suggests how to draw on political economy analysis to inform EU development activity, including programming, identification and formulation of specific interventions, risk management and policy dialogue.
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