Sectoral and problem driven political economy analysis

Development interventions are more effective when they are informed by an understanding of the realities of power relations, incentives and change-processes. To get real benefits from aid, and minimise the risk of doing harm, development actors need to appreciate the political and economic 'rules of the game' in the places where they work. This is what political-economy analysis is about.

We were pioneers of the application of political economy analysis in the form of 'drivers of change' and 'power and change'’ exercises supporting the design of donor country programmes. For example, we undertook the first exercises in Ghana, Malawi and the East African Community for the UK Department for International Development (DFID), and on Colombia and Guatemala for the Dutch Government. We have also contributed continuously to the development and application of political economy tools.

More recently, we have been working in partnership with The Policy Practice, to draft How To Notes and run an established series of training courses on the use of political economy analysis in donor operations. We have also been working with other ODI programmes and in partnership with FAO, to develop and apply more targeted 'problem-focused' political-economy tools. These aim to provide the political intelligence needed to back up financial and technical support to agriculture, transport, power and water and sanitation investments.