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Political Economy of Reform

LogoWhy do policy reform processes sometimes stall, stop, reverse, or go off track despite their content, design and implementation appearing technically sound? 

Why do some reforms, when implemented, not have the poverty-reducing benefits that had originally been anticipated??


To answer these questions, SDV has developed a conceptual framework for the political economy of reform that has been developed from operations for operations, building on over seven years of Poverty and Social Impact Analysis (PSIA) experience and on the TIPS Sourcebook.


The Political Economy of Reform proceeds from a 'power-based model of change' (rather than a rational-choice based model). It draws upon economic, social and political theory in order to understand how political actors, institutions and economic processes influence each other. Political economy of reform combines considerations of equity and distribution of power and wealth between different groups and individuals. By linking analysis with policy dialogue and actions, the framework aims to translate political economy analysis into practical measures for enhancing the sustainability, effectiveness and equity of Bank operations.

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