Political economy analysis

Examples of political economy analysis

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Examples of political economy analysis
Drivers of change country studies

Examples of political economy analysis

Utomi, P, Duncan, A and Williams, G., 2007, ‘Nigeria - The Political Economy of Reform - Strengthening Incentives for Economic Growth’, The Policy Practice, London
How does reform take place within the constraints of political and economic processes? What has driven recent policy and institutional reforms in Nigeria, and how can Nigeria's reform process be sustained and extended? This briefing paper from the Policy Practice argues that the failure to achieve sustainable economic growth and poverty reduction in Nigeria is linked to institutional and incentive problems. Efforts are needed to strengthen incentives for economic growth and public accountability in Nigeria. All stakeholders must recognise the realities and risks to sustainable reform, as well as the long time-scale required.
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World Bank, 2008, 'The Political Economy of Policy Reform: Issues and Implications for Policy Dialogue and Development Operations', World Bank, Washington
How can donors improve the effectiveness of policy reform processes? This study from the World Bank 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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Hodges, T. and Tibana, R., 2004, 'The Political Economy of the Budget Process in Mozambique', Oxford Policy Management, Oxford
This paper examines the nature of the budget process in a highly aid-dependent developing country with weak institutions. It examines how the almost complete absence of domestic demand for improvements in the budget is due to deeply rooted structural features in the Mozambican context.
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Keefer, P., 2007, ‘Political Economy’, Section 4 in: Ghana: Meeting the Challenge of Accelerated and Shared Growth, Country Economic Memorandum Ghana, Volume III: Background Papers, World Bank, Washington
What hinders growth-supporting policy reform in Ghana, and how can these obstacles be addressed? In recent years, Ghana has experienced relative macroeconomic stability and growth. However, accelerating and sustaining growth requires significant policy change across a range of areas. This extract from the World Bank’s Country Economic Memorandum of Ghana examines the political incentives of policymakers to pursue such change. Clientelism undermines progress in pro-growth reforms. Reform should focus on: education; improving the collection of and access to government information; and ensuring that policy does not favour particular ethnic groups.
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Hickey, S., 2006, ‘The Politics of What Works in Reducing Chronic Poverty’, CPRC Working Paper 91, University of Manchester
What forms of politics are most likely to reduce chronic poverty in developing countries? This working paper, published by the Chronic Poverty Research Centre, uses comparative case-study analysis to argue that a shift is needed in donor policy. Greater attention should be paid to political instead of civil society, to the link between political discourse and poverty analysis rather than simply to poverty data, and to the importance of political contracts in sustaining pro-poor policies.
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Mezzera, M. and Aftab, S., 2009, ‘Pakistan State-Society Analysis’, Democratisation and Transitional Justice Cluster, Initiative for Peacebuilding and the Netherlands Institute of International Relations, Clingendael, The Netherlands
What is the impact of deep structures, formal and informal institutions, and current events on the nature of the state in Pakistan and its relations with society? This report from The Initiative for Peacebuilding analyses the causes of weak state-society relations in Pakistan and explores the complex power dynamics that underpin them. Despite the bleak picture that emerges, a better understanding of the context can help the international community to engage with Pakistan on a constructive and long-term basis, with the overall objective of supporting genuine democratisation and building substantive citizenship.
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Sundet, G., and Moen, E., 2009, ‘Political Economy Analysis of Kenya’, Discussion Report No. 19, NORAD, Oslo
How can donors contribute to governance reform in Kenya? What role can they play in strengthening state-society relations in particular? This report makes recommendations for Norway’s strategic approach to governance in Kenya based on a political economy analysis of the country. More focus on state-society relations is needed, particularly at local government level. Systematic learning, analysis and social dialogue should also be emphasised.
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Kelsall, T., 2009, ‘Game-theoretic Models, Social Mechanisms, and Public Goods: A Methodological Discussion’, Africa Power and Politics Programme Discussion Paper No. 7, Overseas Development Institute, London
How can empirical research be used to build policy-relevant theory about governance and development? This paper reflects on the Africa Power and Politics Research Programme (APPP), arguing that contextually modified concepts from game theory can help explain development outcomes. There is little in the literature or initial fieldwork results to suggest that mix of governance modes itself is a key driver of better and worse public goods provision. The drivers seem instead to include: (1) game-like mechanisms; and (2) structural-institutional factors. Pre-fieldwork theoretical reflection should be combined with intense periods of empirical observation, analytical modelling and cross-case comparative theory building.
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Further resources:

Case studies for Oxfam’s 2008 book ‘From Poverty to Power’ can be found on the book’s website.
Actionaid have pioneered a ‘critical webs of power’ approach to understanding how change happens through advocacy. Case studies of this approach are available on their website.