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PSIA in the World Bank
Poverty and social impact analysis (PSIA) is a priority for policy makers, non-governmental organizations (NGOs), bilateral donors and the World Bank. While the analysis of reform impacts has been undertaken in the past, it has not been systematically applied across countries or reforms that have distributional or social implications. The Poverty Reduction and Strategy Paper (PRSP), approach, with its focus on development outcomes, has highlighted the importance of such analytic work and the need for it to be conducted in a more systematic and coordinated manner. The Bank and other partners are working to expand the number of countries where PSIA underpins major reforms. The Bank's effort focuses on:
- Formulating a conceptual approach to PSIA for use by governments, research institutes and World Bank staff as a starting point for carrying out analysis. This approach is presented in the World Bank User's Guide to Poverty and Social Impact Analysis (April 2003), which is adaptable to different reform issues and different levels of country capacity. Its relevant sections are presented as attachments on the relevant pages of this site and the complete version is available below. A number of stakeholders gave comments on the approach (see Comments from the PSIA User’s Guide draft, in the "Related PSIA" section on the left).
- Disseminating examples through training courses on the approach, on specific tools, on particular reforms, and presentation of case studies. The PSIA website will serve as a gateway to the current work both in the Bank and in other agencies.
- Preparing detailed guidance on PSIA tools and methods and updating that guidance in light of evolving practice (see the Tools and Methods section on the left). The Bank is also working to develop new tools where current techniques are weakest, such as in the estimation of the distributional impacts of macroeconomic reforms.
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