An important, new World Bank study has fascinating news. The study is Problem-Driven Political Economy Analysis: The World Bank’s Experience (Verena Fritz, Brian Levy, and Rachel Ort, Editors). Problem-driven political economy analysis is an approach that encourages those who want to implement governance reforms to:
- Start the diagnosis with a focus on the problem to be solved, the challenge to be confronted (not general, big picture analysis for its own sake);
- Probe why the bad equilibrium exists/persists by investigating the roles of (a) structural factors (b) formal and informal institutions…the rules of the game and (c) stakeholder interests, networks and power; and
- Find a feasible path to reform/change in the specific context.