Sector level analysis identifies the interests, incentives, power structures and relations that shape policy and practice at the level of sectors. Proponents argue that this approach lends itself more easily to identifying practical entry points for action.
Poole, A. (2011). Political economy assessments at sector and project levels (How-To Note). Washington, DC: World Bank.
This note draws on lessons learned to provide an introduction to political economy (PE) assessment for World Bank sector- and project-based operational teams. The last decade of experience has demonstrated that PE assessments can improve project design, lessen risk, explain why reform champions may fail to deliver, and can promote more thoughtful engagement with client governments.
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European Commission. (2008). Analysing sector governance. In Analysing and addressing governance in sector operations (ch. 4). Brussels: European Commission.
How can political and institutional constraints be addressed so as to improve the effectiveness of aid at sector level? This publication offers a framework for analysing sector governance. The framework focuses on the context of sector governance, actors’ interests, power and incentives, and governance and accountability relationships. Where opportunities for short-term governance enhancement at sector level are limited, sector specialists can look for alternative entry points. These might include supporting the private sector and civil society.
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World Bank. (2008). The political economy of policy reform: Issues and implications for policy dialogue and development operations (Report No. 44288-GLB). Washington, DC: World Bank.
How can donors improve the effectiveness of policy reform processes? This study addresses the political economy of sector reform in agricultural marketing, and water supply and sanitation. It uses a social analysis perspective to analyse stakeholder interests, incentives, institutions, risks and opportunities. Development agencies should undertake timely political economy analysis and establish a sustainable process for building broad coalitions. They should also promote transformative institutional change that includes empowering forms of bottom-up accountability.
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Danida. (2011). Applying political stakeholder analysis: How can it work? Copenhagen: Ministry of Foreign Affairs of Denmark.
This report provides a brief review of existing approaches to and format for political stakeholder analysis at the sector level. It addresses how the findings of a political economy analysis can feed into a stakeholder assessment at the sector level and provides a framework for such analysis. It also evaluates what has worked well and less well in the field test of existing approaches.
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Mcloughlin, C., with Batley, R. (2012). The effects of sector characteristics on accountability relationships in service delivery (Working paper 350). London: Overseas Development Institute.
Why do different services encounter particular political constraints and opportunities in their delivery? This paper identifies a set of characteristics that can be used to differentiate between services, and between functions within them, and asks how these defining or ‘fixed’ characteristics may influence key relationships of accountability and control. It outlines a number of ways in which the nature of the good being produced, the type of market failure encountered, the tasks involved in delivery, and how the service is demanded and consumed can influence the balance of power between politicians, users and provider organisations.
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See also: Batley, R., & Harris, D. (2014). Analysing the politics of public services: a service characteristics approach. London: Overseas Development Institute.
