Ex ante Poverty Impact Assessment Poverty Data Monitoring and Evaluation Seminar & East Asia PADI Coordinator Conference May 10-14, 2007 Nanchang, PR China Solveig 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 Pilots by several donors in 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 RESULTSCHAINRESULTSCHAIN PIA Modules Risks PIA framework and modules Information quality and gaps

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! For further information Promoting Pro-Poor Growth: Harmonising Ex Ante Poverty Impact Assessment The Guide to Ex Ante Poverty Impact Assessment will be published in June 2007

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 TasksInterests and pro-poor agenda; aspects that might hinder them to have a pro-poor agenda (risks) Rating Company IndiaBuy seedlings and produce bio diesel No particular interest in poverty reduction 0 ICRISATCapacity 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 NGOsOrganising village level groups to ensure equity By mandate interested in poverty reduction and equity issues ++ 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 & RisksShort term Medium term Details & Risks Prices + Market might fluctuate Employment Transfers Access + Authority + Assets ++

Module 4: Outcomes related to capabilities example biofuel Outcomes in terms of capabilities Detail & risks Inform- ation sources Mitigation or reinforcing measures EconomicHumanPolitical Socio- cultural Protective Security Stake- holder Groups short term medium term short term medium term short term mediu m 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 GoalsImpactsDetails & 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