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. PSIA helps to: