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PSIA in the World Bank
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Poverty and social impact analysis

Poverty and social impact analysis (PSIA) implies an analysis of the distributional impact of policy reforms on the well-being or welfare of different stakeholder groups, with particular focus on the poor and vulnerable. PSIA has an important role in the elaboration and implementation of poverty reduction strategies in developing countries. It promotes evidence-based policy choices and fosters debate on policy reform options. PSIA helps to:
  • Analyze the link between policy reforms and their poverty and social impacts
  • Consider trade-offs among reforms on the basis of their distributional impacts
  • Enhance the positive impacts of reforms and minimize their adverse impacts
  • Design mitigating measures and risk management systems
  • Assess policy reform risks
  • Build country ownership and capacity for analysis

PSIA is a systematic analytic approach, not a separate product. It starts with the ex-ante analysis of expected poverty and social impacts of policy reforms, with a view to helping to design the reforms. PSIA then advocates monitoring results during implementation. Finally, where possible, PSIA suggests evaluating ex-post the poverty and social impacts of reforms.

This website was conceived as a forum for interaction and a tool for disseminating experience. We invite you to send material, links, references and suggestions to psia@worldbank.org. The site will be updated as we gain experience.

The website presents information in the following categories in the left-hand navigational menu :
  • PSIA in the World Bank: describes the activities undertaken in the World Bank to build and disseminate knowledge on PSIA
  • Approach: presents the draft framework developed by the World Bank to carry out PSIA of reforms
  • Tools and methods: presents a range of tools and techniques to undertake the various steps of PSIA
  • Country experience: describes some of the analysis carried out for specific countries and reforms
  • Related PSIA work: includes comments on the PSIA approach and links to relevant sources
  • Resources: includes references and translations of PSIA material to other languages
  • Training activities and materials: includes useful presentations and information from past events

The World Bank has developed a PSIA User's Guide that is intended for practitioners undertaking PSIA in developing countries. It introduces the main concepts underlying PSIA, presents key elements of good practice approaches to PSIA, and highlights some of the main constraints and operational principles for PSIA. This User's Guide highlights some of the key tools that practitioners may find useful to analyze poverty and social impacts of policy reforms, but does not aim to be comprehensive in coverage. It is available in several languages in the box to the right.

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