Problem-Driven Political Economy Analysis

Problem-driven political economy analysis holds considerable promise for development practitionersseeking to identify policies and strategies that are most likely to deliver solutions for difficult developmentchallenges. This volume takes stock of the World Bank's experiences applying this approach. The eight goodpractice cases presented in this volume illustrate recent Bank achievements. Problem-Driven Political EconomyAnalysis: The World Bank's Experience shows how political economy analysis can be applied to specificdevelopment challenges from different sectors, highlights the range of empirical evidence that can be usedand discusses the types of recommendations and follow up actions that result.Each case opens by describing the specific challenge or opportunity that prompted the analysis:an emerging natural resource boom in Mongolia, a growing need for subsidy reform in Morocco, difficultconstellations around electricity sector reform in the Dominican Republic, electricity and telecommunicationsreforms in Zambia, the development of inclusive commercial agriculture in Ghana, infrastructureprograms at the subnational level in Sierra Leone, local infrastructure provision in Papua New Guinea, andthe allocation of local roads and health services in the Philippines.The cases then review key findings, describing how political economy drivers impeded first best economicallyefficient or technically sound reforms and how the incentives at play offer opportunities forengagement.Each case then sets out the feasible policy recommendations derived from the analysis, includingspecific recommendations for how development interventions can be adapted to existing political economyconstraints and-where possible-how to engage on expanding the space for reform. Finally, there is areflection on the uptake and effects of the problem-driven analysis on World Bank operations and on policydialogue.