Introduction to the Group on Political Economy in practice
Politics matter in development and in development cooperation. Few would dispute this statement. If aid efforts, for example, don’t result in envisaged changes, usually the blame is on a lack of “political will”. But what does that mean? What really matters in politics when we discuss development?
The last couple of years, some donors have invested energy in so-called political-economy approaches to analyses and assessments. Political economy analysis is commonly understodd as 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 (DFID definition).
Development is viewed as change processes affected by the interests of the various actors in society, by the way they interact with the state, the power and influence they exercise, but also by structural and institutional dimensions such as state formation, geography, history and global drivers of change.
The EC is considering how to introduce an adapted political economy approach in its work. The first move in this direction has been the development of the Reference Document on ‘Analysing and Addressing Governance in Sector Operations’ (see as well http://capacity4dev.ec.europa.eu/article/introducing-governance-sector-o...). The next step is to integrate Political Economy thinking into the Project/Programme Cycle Management Guidelines currently being drafted by Directorate E in EuropeAid.
This Group intends to track and support this work, sharing research findings, highlighting the practice and added value of PE approaches, and enabling exchanges between EC staff and with other practitioners and experts.
The Group will facilitate access to selected readings and guidance in this area, and share information on ongoing initiatives. Special attention will be given to : sector work - including the application of the EC "sector governance assessment tool" or other methods – the development of PE guidance within the PPCM.