Analyzing the Effects of Policy Reforms on the Poor

ebook An Evaluation of the Effectiveness of World Bank Support to Poverty and Social Impact Analyses

By World Bank

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This IEG evaluation, requested by the World Bank's Board of Executive Directors, represents the first independent evaluation of the PSIA experience.

The evaluation finds that:

  • The PSIA approach has appropriately emphasized the importance of assessing the distributional impact of policy actions, understanding institutional and political constraints to development, and building domestic ownership for reforms
  • PSIAs have not always explicitly stated their operational objectives (i.e., informing country policies, informing Bank operations, and/or contributing to country capacity)
  • PSIAs have had limited ownership by Bank staff and managers and have often not been effectively integrated into country assistance programs
  • Quality assurance and Monitoring and Evaluation of the overall effectiveness of PSIAs have been weak

The evaluation recommends that the World Bank:

  • Ensure that Bank staff understand what the PSIA approach is and when to use it
  • Clarify the operational objectives of each PSIA and tailor the approach and timeline to those objectives
  • Improve integration of the PSIA into the Bank's country assistance program by requiring that all earmarked funding for PSIAs be matched by a substantial contribution from the country unit budgets
  • Strengthen PSIA effectiveness through enhanced quality assurance
Analyzing the Effects of Policy Reforms on the Poor