Resource ID: INDIGO-ARES-0015
Link: https://www.worldbank.org/en/topic/poverty/brief/poverty-and-social-impact-analysis-psia
PSIA is a versatile analytical approach to assess the distributional and social impacts of policy reforms on different groups, with emphasis on the poor and vulnerable. It aims to inform the design of policies and programs in four main ways:
1. Providing evidence on the poverty, social, and distributional effects of reforms;
2. Proposing changes and course corrections to a policy or program, and identifying measures to mitigate any adverse impacts;
3. Identifying alternative options to enhance poverty reduction and positive outcomes;
4. Creating space for public dialogue around reforms through engaging stakeholders.
A PSIA enhances policy effectiveness, contributes to national dialogue, and increases accountability and transparency surrounding policies and programs. PSIAs can use both quantitative and qualitative methods, and can be undertaken before, during or after a policy reform. If done before or during the reform process, the analysis can inform the design and sequencing of alternative policy options, and suggest changes along the way. If undertaken after the reform, PSIA can help assess the actual impacts of the policy, which can suggest ways to mitigate any adverse effects and help inform decision makers about the likely impacts of future reforms.
Impact goal: SDG oriented, Social impact, Development poverty reduction
Internal/external: External, Internal
Leader: World Bank
Method: Attribution, Ex ante projections, Diff in diff statistical analysis
Output format: Quant but no index
Scale: Macro
Sourcing: Self driven, Proprietary in house
Time frame: Ongoing, Prospective, Retrospective
Type: Case study
Used in sectors: Igos, Charity, Development
Who: Third sector
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