More Related Content
Similar to Understanding Reform through Political Economy (EN) (20)
Understanding Reform through Political Economy (EN)
- 1. Understanding Reform Through Political Economy September 9, 2014 PRESENTED BY EDOUARD ALDAHDAH MENA Knowledge Sharing and How-To in Subsidy Reform: Regional Workshop
- 2. Why Political Economy? Helps sort through the economic and political factors responsible for variation in development outcomes. Strategic Interaction of Actors Specific Institutional Context Feasible Policy- Making Space
- 3. How-To Expand the Space for Reform Current Policy- Making Space Ideal Space for Change
- 4. Identifying Binding Constraints to Reform Information Asymmetries Collective Action Problems Lack of Trust Rent-Seeking Delegation Problems Institutional Manipulation
- 5. Collective Action Problems Motivational Problems Individual vs. Collective Benefits Temptation to “Free Ride” Overuse of resources Information Problems Missing Information Asymmetric Information Principal-Agent Problems
- 6. Lack of Trust and Rent-Seeking Distrust: Makes potential supporters of change risk averse, severely limiting policy-makers’ capacity to reform. Rent-Seeking: Achieving economic gain by manipulating the political or social environment.
- 7. Delegation Problems When a principal transfers consulting, decision or implementation power to the agent (implementer). But… the principal and the agent have conflicting interests, resulting in implementation problems. Because the principal does not have complete information it can’t identify and address the misalignment.
- 8. Institutional Manipulation Manipulating the “rules of the game” to achieve results. For example, agenda setting, when an actor uses their power to set the agenda in order to ensure a more favorable outcome for the actor.
- 9. Solutions to Binding Constraints Leadership Communication Bundling Timing Sequencing Agenda Setting
- 10. Communication • Helps create support for reform • Improves participation in collective efforts Increases Trust • Solving collective action problems related to information Corrects Information Asymmetries
- 11. Bundling The reform you want to pass Another reform in one package…
- 12. Leadership ¨ Helps coordinate coalitions ¨ Disseminate information ¨ Can jumpstart a process ¨ Incentivize participation in the reform process
- 13. Timing Good Timing Can Help Reform Progress • Political Factors (election cycles, shifts in public opinion, changes in policy-making structures) • Economic Factors (growth, inflation, unemployment)
- 14. Sequencing Sequencing and Pacing can help build support and ownership of reform