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What is political economy analysis?

Political economy analysis (PEA) ‘is concerned with the interaction of political and economic processes in a society: the distribution of power and wealth between different groups and individuals, and the processes that create, sustain and transform these relationships over time (OECD-DAC in DFID 2009: 4).’

PEA is concerned with the political processes of contestation and bargaining between interest groups with competing claims over rights and resources and also with the economic processes that generate wealth and that influence the parameters for political choices (DFID, 2009: 4).

In essence, PEA highlights the fact that development is political and that context always matters. Taking this into account will help you root your programmatic and policy choices in a more realistic and grounded understanding of the interests and incentives of those with power and what it is possible, rather than simply desirable.

Guidance

Stakeholder Analysis

stakeholder_analysis_guidance.pdf

What have we learned?

CARE has carried out political economy assessments in 12 countries since 2012: Peru, Pakistan, Sri Lanka, Nepal, Egypt, Uganda, Malawi, DRC, Ethiopia, Zambia, and India and Mali.

Please see here for what we learned from the process:

what_care_has_learned_from_political_economy_analysis_and_how_to_do_it_better.pdf

Please see here for a five point plan for better political economy analysis:

a_five_point_plan_for_better_political_economy_analysis.pdf

Some examples

Please see below an example of CARE Uganda's analysis of the forestry sector:

uganda_governance_context_analysis.doc

Please see below for an example of CARE Zambia's analysis of the health sector (in the Eastern Province):

zambia_political_economy_of_health_in_eastern_province.doc

Please see below for an example of CARE Malawi's political economy analysis on GBV in Malawi

care_-_gbv_and_vac_report_-_revised.doc

cares_gbv_programming_models_in_africa.docx