PSIA and the World Bank

1
PSIA and the World Bank

• Anis Dani Stefano Paternostro
• DFID-DGIS workshop of bilaterals on PSIA, The
  Hague, Oct 13-14, 2003

2
What do we mean by PSIA?

• What is PSIA?
• An approach to the analysis of the impacts of
  policy reforms on the well-being (income and
  non-income dimensions) of different groups,
  especially the poor.
• PSIA is not new
• PRSP impetus for more systematic analysis of
  poverty and social impacts of associated reforms
• Gradually extending to IBRD countries as well
• PSIA responsibility of Borrowing countries
• Bank and others assist LICs in undertaking PSIA
  for reforms we support

3
Scaling up PSIA work

• PSIA work expanding rapidly
• TF pilots 6 in FY02, 5 more in FY03
• Incremental BB-funds 15 mini-PSIA in FY03, and
  37 PSIA in FY04
• PSIA increasingly integrated as an approach in
  poverty assessments and other core ESW
• Total 71 identifiable PSIA activities ongoing, of
  which 62 are in PRSP countries
• PSIA ongoing in 43 countries, of which 38 are
  PRSP countries
• But much more needs to be done to mainstream PSIA
  in borrowing countries

4
PSIA in the Regions
5
PSIA Sectors All countries
6
Lessons from sectoral PSIA

• Utility tariff reforms
• Tariff reforms to recover cost-of-service can
  have adverse impacts on poor and increase risk of
  non-payment
• Issues pace, quality and sustainability of
  reform
• Agricultural reforms
• Restructuring of state monopolies needs to be
  balanced against food security concerns
• Issues weak institutions, poor agri.
  Infrastructure, subsidies in industrialized
  countries
• Enterprise restructuring
• Design of mitigation measures for laid off
  workers needs to be balanced by impact on
  regional economy, especially in mono-industrial
  areas

7
Lessons from Bank experience

• PSIA more feasible for individual reforms than
  for entire reform program
• Reforms identified by PRSP process and included
  in PRSC
• Ownership created through consultation on reform
  priorities, e.g. Cambodia
• Flexibility needed tools and methods based on
  context but multi-disciplinarity helps
• Dilemma Short-term results easier to analyze,
  many positive impacts have longer time horizon
• Forward-looking elements (ME, policy dialogue)
  help to overcome limits of ex-ante PSIA

8
Collaboration with donor partners

• Phase One
• DfID Pilots,
• Collaborative PSIA with GTZ (Malawi, Cambodia,
  Armenia)
• Coordinated parallel activities (KfW Ghana, DfID
  Uganda)
• Phase Two
• Staff secondments DfID, Norway
• Framework for collaboration with GTZ
• Framework for collaboration with IMF
• PSIA website with access to PSIA Users Guide,
  toolkit, country cases, etc.

9
Issues for discussion

• Potential of PSIA to inform donors own
  analytical agenda and policy dialogue
• Options for partnership in PSIA for PRSC/PRGF
• Collaborative PSIA
• Staff secondments
• Structured partnership with research
  organizations
• Single or multi-donor trust funds
• Coordinated donor effort to build country
  capacity for PSIA