Ex ante Poverty Impact Ex ante Poverty Impact AssessmentAssessment

Poverty Data Monitoring and Evaluation Poverty Data Monitoring and Evaluation Seminar & Seminar &

East Asia PADI Coordinator ConferenceEast Asia PADI Coordinator Conference

May 10-14, 2007May 10-14, 2007

Nanchang, PR ChinaNanchang, PR China

Solveig Buhl, OECDSolveig Buhl, OECD

POVNET’s work

• Formed in 1998: subsidiary body of Development Assistance Committee (DAC) of OECD– helps development agencies develop more effective and sustainable

approaches to supporting partner country poverty reduction efforts (DAC Guidelines: Poverty Reduction, 2001)

• Since 2003: focus on relationship between economic growth and poverty reduction in developing countries and strategies and policies that donors should pursue to promote pro-poor growth (PPG) (Promoting Pro-Poor Growth: Policy Guidance for Donors, 2006)

• Since 2006, platform for implementing Paris Declaration on Aid Effectiveness and ODA scaling up– Consolidate knowledge about implementing PPG - approaches– Strengthen donor co-ordination around locally owned poverty reduction

strategies– Widen debate on PPG through local and regional activities and events

The PIA Task Team within POVNET

• Group founded in 2005 to develop harmonised and easy to use approach to (ex ante) poverty impact assessment

• Participants: DAC/OECD, France, Germany, Japan, Netherlands, UK, Sweden, Switzerland, USA, Ireland, Finland (plus consultations with partner countries)

• Report “Harmonizing ex ante Poverty Impact Assessment” approved by DAC in March 2006 http://www.oecd.org/dataoecd/32/44/36573576.pdf

• Pilots by several donors in 2006-2007

• Joined forces with PSIA network (additional members WB, UNDP)

• Guide to PIA will be submitted to DAC and published in June 2007

Challenges that reduce development effectiveness

PIA can contribute to higher development effectiveness

Interventions often planned with little regards to existing strategies and programmes

Helps orient donors’ assistance on country‘s development priorities (alignment)

Every donor has own assessment, reporting and monitoring format thus burdening partner countries

Lowers transaction costs of delivering and managing aid (harmonisation)

Goals and action plan to achieve these goals not jointly elaborated and insufficiently communicated

Assessment of the distributional impact of an intervention often not done

Provides common platform for defining mutual action agenda (mutual accountability and ownership)

Defines flexible and simple performance assessment framework, ensures continuous dialogue and relevant and timely information (managing for results)

PIA’s contribution to the Paris Declaration commitments

Basic properties and level of application

• Can cover most interventions (policy, programmes, projects, NOT budget support)

• Based on existing approaches, e.g. PSIA, impact chain analysis

• Use of existing data and analyses with the option to collect additional data (using both quant. and qual. approaches)

• Relatively simple, flexible approach, providing 5 modules with matrices

Assess Improvements to

MDGs plus

Assess enhancement to capabilities(economic, protective, political,

cultural, human) – gender/environment

Determine transmission channels (prices, employment, transfers, access,

authority, assets)

Analyse Institutions & Stakeholders

Determine & Design Interventions

Country Assistance StrategiesNational Strategies / Plans

RESULTS

CHAIN

PIA Modules

5

4

3

2

1

Risks

PIA framework and modules

Info

rmatio

n q

uality an

d g

aps

Improved understanding of the planned interventions serves several purposes

To summarise, PIA allows to

• identify interventions with high poverty reduction and pro-poor growth impact

• improve design of proposed intervention

• identify existing information quality and information gaps

• identify monitoring needs

Next steps

• Dissemination of lessons learned and continuous learning

• Awareness raising workshops and capacity development among donor agencies and in partner countries

• Up-scaling of the approach

THANK YOU! THANK YOU! For further information

www.oecd.org/dac/poverty

Promoting Pro-Poor Growth: Harmonising Ex Ante Poverty Impact Assessment

http://www.oecd.org/dataoecd/32/44/36573576.pdf

The Guide to Ex Ante Poverty Impact Assessment will be published in June 2007

Solveig.Buhl@oecd.org

Module 1: Poverty situation and relevance to national strategies and programmes

General poverty situation in country / region / area

Existing national strategies / programmes relevant to the intervention

Short description of the intervention and how it aligns to national programmes

Stakeholders / intermediaries

Main Tasks Interests and pro-poor agenda; aspects that might hinder them to have a pro-poor agenda (risks)

Rating

Company India Buy seedlings and produce bio diesel

No particular interest in poverty reduction

0

ICRISAT Capacity Development Research &

Development

Mainly interested in developing viable, sustainable agronomic approach, but also interested in poverty reduction

+

International company

Technology

Transfer

No particular interest in poverty reduction

0

NGOs Organising village level groups to ensure

equity

By mandate interested in poverty reduction and equity issues

++

Very negativeNegativeNot significantPositiveVery positive

- --+++Stength/Directionimpact Very negativeNegativeNot significantPositiveVery positive

- --+++Stength/Directionimpact

Module 2: Stakeholder/ Institution Analysis example PPP biofuel

Module 3: Transmission Channels example biofuel

Transmission Channels

Transmission Channels

Used

Results by Transmission Channel Categories

Information Sources

Details & Risks Short termMedium

termDetails

& Risks

Prices + Market might fluctuate

Employment

Transfers

Access +

Authority +

Assets + +

Very negativeNegativeNot significantPositiveVery positive

- --+++Stength/Directionimpact Very negativeNegativeNot significantPositiveVery positive

- --+++Stength/Directionimpact

Module 4: Outcomes related to capabilities example biofuel

Outcomes in terms of capabilities

Detail&

risks

Inform-ation

sources

Mitigation or

reinforcing measures

Economic Human Political Socio-

cultural Protective

Security

Stake-holderGroups

short term

medium term

shortterm

medium term

short term

medium term

short term

medium term

short term

medium term

Land owning poor (with large proportion of waste land)

+ ++ +    

Landless poor

members of SHGs (90% women)

+ +

Module 5: Impacts at aggregated level example biofuel

Strategic Development Goals Impacts Details & Risks

Information Sources

MDG 1. Eradicate extreme poverty and hunger +

MDG 2. Achieve universal primary education

MDG 3. Promote gender equality empower women

+ If SHG are supported

Interviews with …

MDG 4. Reduce child mortality

MDG 5. Improve maternal health

MDG 6. Combat HIV/AIDS, malaria, other diseases

MDG 7. Ensure environmental sustainability

Pro Poor Growth

Protecting the vulnerable

Peace, Security, Disarmament

Human Rights, democracy and good governance

Protecting the common environment + marginal