Advanced EC seminar on decentralisation and local governance European Commission EuropeAid 2-5 July 2012, Brussels The seminar reviewed the country context and the evolving international development framework and considered how to manage the political dimensions of decentralisation. It also looked at using decentralisation as a trigger to foster better development outcomes and governance and what all this means for future EU engagement in decentralisation and local governance. Jean Bossuyt, ECDPM, was the lead facilitator of this meeting. Alisa Herrero, ECDPM, was also one of the experts facilitating this seminar.

1. Session 2.2
Introduction to
Political Economy Analysis (PEA)

2. Session’s objective
1. Why is there so much interest in Political
Economy Analysis?
2. What is PEA all about?
3. What are the preliminary conclusions of these
analyses and are there implication for donors?

3. 1. Why is there so much interest in
Political Economy Analysis?

4. Despite the efforts and resources
directed to supporting governance
and institutional reform, results
have been mixed and sometimes
even disappointing….

5. Do we know our context?

6. Are intervention and support
strategies adapted?

7. Governance • Governance clusters:
clusters democracy, human rights,
rule of law, decentralisation …
Governance
principles
• Governance principles:
transparency, accountability,
participation, inclusion
Core
governance • Core governance issues:
issues rules of the game, interests,
power, incentives
OPEN THE BLACK BOX

8. 2. Opening the black box: PEA, what
is it about?

9. Some considerations
Political economy analysis:
• Is not an exact science
• Draws from various intellectual backgrounds
• There is no single universal methodology
• Different tools analyse same object by asking
structured questions
• Can be applied at three levels: country/macro,
sectoral/thematic and project/micro

10. What is PEA interested in?
• Political process: power
relations and struggles around
resources
Interaction • Economic process: how the
between political generation of resources influence
and economic political processes
processes • Evolution and dynamics of
these processes in time
• Formal and informal
• Why? institutions
• How to support • The hidden relations,
change? motivations and interests of
all the actors

11. Make the iceberg visible
11

13. A few tools
 Drivers of change (DFID)
 Strategic Governance and Corruption
Assessment (Netherlands)
 Power Analysis (SIDA)
 Democratic Governance Assessment (US)
 Sector governance et DEVCO Concept Note
(EC)

14. Tools for analysing governance in sectors
Political system/
government
Rule making and
executive actors at
Context different levels
Checks and balances Non-state actors
organisations Citizens, voters, Core public agencies
Supervise sector consumers, user groups Sector ministries,
organisations or handle economic agents, elites, agencies with regulatory
complaints (auditors, media…
or supporting roles, …
judiciary, ombudsmen,…)
Frontline service
providers Donors,
Public and private international
providers delivering organisations
services Influence on sector
governance and
Governance accountability relations 14
14
Accountability

15. DEVCO CONCEPT NOTE ON PEA
History
(structural elements)
INSTITUTIONS HERE and NOW
(political competition)
(the formal and informal
15
rules of the game)

16. EXPERIENCES
 PEA Zambia
 PEA Mozambique
 PEA Cameroon/public expenditures
 PEA Senegal
 PEA planned in Guinea Conakry and Laos

17. 3. Preliminary conclusions and
implications for donors

18. How can PEA be useful?
 Identify actors, pathways of change, alliances and
coalitions
 Translate analysis into politically savvy strategies
and support programmes,
 Assess risks of achieving results (or not),
particularly policy outcomes
 Efficient dialogue with different actors, especially
the government  “compelling narrative”
 Aid effectiveness
 Development effectiveness
BUT ARE WE READY/ABLE TO USE PEA ???