Political economy analysis

Political economy analysis in fragile and conflict-affected states

Political economy analysis in fragile and conflict-affected states often focuses on an understanding of the political and the economic drivers of conflict, and the relative power, exclusion and vulnerability of different groups over time. It can highlight competing rules of the game in (and between) formal and informal institutions which are often prevalent in fragile and conflict affected settings. It can identify shifting coalitions that contribute to or prevent state collapse, the nature and sources of state capacity, authority and legitimacy, and how and why rent seeking and patrimonial political systems can either contribute to, or undermine, state stability.

GSDRC, 2008, 'Political Economy Methodologies for Fragile States', Helpdesk Research Report, GSDRC, Birmingham
This report looks at various political economy approaches and methodologies, including new political economy; institutional economics; drivers of change/politics of development; sustainable livelihoods; and early warning models and conflict analysis. While not all are designed specifically for fragile state contexts, the concepts and approaches are applicable to many differing situations.
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Di John, J., 2008, 'Conceptualising the Causes and Consequences of Failed States: A Critical Review of the Literature', Working Paper No. 25, Crisis States Research Centre, London
This paper from the Crisis States Research Centre suggests several lenses might be used to develop a sophisticated political economy of conflict in fragile states. These include: (1) Institutional multiplicity: a situation in which different sets of rules of the game coexist in the same territory, putting citizens and economic agents in complex, often unsolvable, situations, but offering them the possibility of switching strategically from one institutional universe to another; (2) State capacity and capability: the abilities and skills of personnel and the organisational culture within the subsystems of the state; (3) ‘Influencing’ or rent-seeking: legal and institutional influencing activities, informal patron-client networks, or corruption; (4) Coalitional analysis: according attention to the shifting constellations of power that underpin formal and informal institutional arrangements; and (5) Divisibility and boundary activation: the creation and activation of boundaries contribute to the escalation of political conflict and violence.
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Collinson, S. (ed.), 2003, ‘Power, Livelihoods and Conflict: Case Studies in Political Economy Analysis for Humanitarian Action - Chapter 1: Introduction’, Report 13, Overseas Development Institute, Humanitarian Policy Group, London
What can political economy analysis contribute to humanitarian aid interventions? How can agencies undertake such analysis in difficult environments? This report chapter from the Overseas Development Institute introduces the findings of a study (2001-2002) of four cases: Afghanistan, the eastern Democratic Republic of Congo (DRC), Sierra Leone and the Casamance in Senegal. Political economy analysis is best conducted alongside existing humanitarian operational activities via integration into existing analytical tools.
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Cliffe, L. and Luckham, R. 2000, 'What Happens to the State in Conflict?: Political Analysis as a Tool for Planning Humanitarian Assistance,' Disasters, vol. 24 (4), pp.291-313, Overseas Development Institute
Peacemaking and humanitarian assistance in complex political emergencies (CPEs) based on a lack of understanding of their political dimensions often result in unintended and even counter-productive outcomes. What is required is analysis grounded in humanitarian principles but based on political realities. This article uses information derived from the COPE programme to illustrate how policy and practice benefit from an awareness of political context. It does so by considering how the problematisation of the state generates violent conflict; how this reshapes or destroys society; the legacies of these conflicts; and suggests that a strategic approach is required for peace-building.
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