Poverty and Social Impact Analysis (PSIA) is the analysis of the distributional impact of policy reforms on the welfare of different stakeholder groups, with a particular focus on the poor and vulnerable. PSIA has an important role in the elaboration and implementation of poverty reduction strategies in developing countries, promoting evidence-based policy choices and fostering debate on policy reform options. PSIA is a systematic analytic approach rather than a separate product, starting with the ex-ante analysis of expected poverty and social impacts of policy reforms and monitoring results during implementation. Where possible, PSIA suggests evaluating ex-post these impacts. PSIA helps to:
- Analyze the link between policy reforms and their poverty and social impacts
- Consider trade-offs among reforms on the basis of their distributional impacts
- Enhance the positive impacts of reforms and minimize their adverse impacts
- Design mitigating measures and risk management systems
- Build country ownership and capacity for analysis
This website was conceived as a forum for interaction and a tool for disseminating experience. We invite you to send material, links, references and suggestions to povertynet@worldbank.org. The site will be updated as we gain experience.
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