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PSIA guidance on sector-specific policy reforms

While information is available on the general approach, techniques and tools for distributional analysis, each sector displays a series of specific characteristics. These have implications for the analysis of distributional impacts, including in terms of the types of impacts and transmission channels that warrant particular attention, the tools and techniques most appropriate, the data sources typically required, and the range of political economy factors most likely to affect the reform process.

Hence, as a complement to the resources already available in our website, each sector-specific subsection on the left-hand navigation bar provides an overview of the specific issues arising in the analysis of the distributional impacts of selected categories of policy and institutional reforms. Each subsection then offers guidance on the selection of tools and techniques most adapted to the reforms under scrutiny, and offers examples of applications of these approaches.

The individual notes on each subsection are meant to be indicative only and do not attempt to cover issues for each selected type of reform in an exhaustive fashion. In addition, the notes currently mainly focus on economic analysis. They will be complemented with more details on social and institutional analysis, once a forthcoming volume on social tools becomes available.

Description of the sector-specific notes

Each note is organized around the different transmission channels through which policy reforms can be expected to have an impact on the population. It provides an overview of the typical direction and magnitude of the expected impacts; the implementation mechanisms through which reforms are typically carried out; the stakeholders that are likely to be affected by the reform, positively or negatively, or that are likely to affect the reform; and the methodologies typically used to analyze the distributional impact. Each note illustrates these points with a series of examples, applications, references, sources, and a bibliography.

So far, this section covers six key areas of policy reforms that are likely to have significant effects on distribution and poverty: education, agricultural markets, land policy, monetary and exchange rate policy, trade, and utility provision. In the future, the following sector-specific notes will be added: decentralization, pension, labor markets, public sector downsizing, taxation, transport and health.

You can click on each subsection on the left to find out more about it.


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