Key questions to guide a Political Economy Analysis in the water sector Annex to the RésEAU Brief no. 4 Apr il 2023 Key questions to guide a Political Economy Analysis in the water sector This document is part of the fourth edition of the RésEAU Brief series dedicated to Political Economy Analysis (PEA) in the water sector. It targets water professionals who are planning to conduct a PEA and would like more practical guidance. For the Swiss Agency for Development and Cooperation (SDC), a PEA includes three phases: 1. Defining the objective of the analysis, 2. Determining the root causes of the problem, 3. Addressing the problem. Those phases are divided into seven steps that allow to go from analysis to action (see Figure 1).1 While there are many methods, approaches, and tools to conduct a PEA, the path chosen by SDC has the advantage of clearly linking the analysis with operational implications and a Theory of Change. For each step, guiding questions are suggested.2 These are quite general and should be adapted to the specific situation.3 Phase 1
Defining the objective of the analysis
1. Identifying the problem Phase 2
Determining the root causes of the problem
Analytical framework
2. Describing foundational factors 3. Describing institutions or the rules of the game 4. Classifying actors
Phase 1
Defining the objective of the analysis
Step 1: Identifying the problem
• Identifying which political economy problem(s) need(s) to be addressed: This is often the most difficult part of the PEA and requires some iteration, e.g. What are the driving forces contributing or hindering progress in overcoming resistance to a watershed management project? It helps to define the purpose of the PEA. • Asking why, why, why until the answers are no longer obvious. A preliminary set of answers to the question ‘why does this problem exist?’ can provide more explicit entry-points for political economy explanations around power structures, institutions, beliefs, and collective action. • Designing the PEA process and elaborating terms of reference, even if the PEA is not externally commissioned: What are the financial resources available? What is the required professional expertise? What is available in-house, who will do the analysis, and what will be the different roles within the team? Who must be consulted in the analysis, and when? What will the results be used for? Who must be informed about the results? How will the results be disseminated or communicated? Some back and forth should be expected as the timeframe, budget and available expertise will influence the scope.
Phase 2
Determining the root causes of the problem
Step 2: Describing foundational factors Phase 3
Addressing the problem
Operational steps
5. Identifying pathways of changes 6. Drawing operational implications 7. Ensuring adaptation
Figure 1: Seven-step framework to go from analysis to action (Political Economy Analysis, SDC, 2021)
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Initially developed by The Policy Practice. Adapted from The Policy Practice and Harris, D. (2012), Political economy analysis for operations in water and sanitation: A guidance note. ODI For more detailed and specific questions related to WASH, see: Harris, D. (2012), Political economy analysis for operations in water and sanitation: A guidance note. ODI; for specific questions to transboundary water related management, see World Bank (2017), Political Economy Analysis for Transboundary Water Resources Management in Africa, Practical Guidance.
Foundational factors are deeply embedded structures that shape the broad character of the state and the political system. They cannot rapidly be changed, and they shape opportunities available to all actors in a given context. What are the structural and long-lasting factors of the country / region / society that fundamentally shape the institutional landscape for water? What structural factors influence negatively or positively the problem to be addressed? Why?