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Economic Analysis of Policy-Based Operations: Key Dimensions

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ISBN: 971-561-491-4
Pub. Date: 2003
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Core elements of ADB’s current program lending approach were designed more than 15 years ago with emphasis on sector policy reforms that facilitate growth and development. Recent reviews call for improving understanding of the macroeconomic context, sector diagnosis, and assessment of the likely impact of policy reforms.

This ERD special study provides a systematic approach to the key dimensions of analysis in support of policy-based operations including:

  • Understanding the macroeconomic context of sector policy reforms using a macro-meso-micro perspective
  • Dimensions of sector diagnosis to identify binding constraints to development in a prevailing policy and institutional environment
  • Approaches to assessing the effects of policy change
  • Assessing policy change effects on poverty by identifying the channels through which policies work, and distribution and time considerations
  • Assessing the processes and costs of policy change including political economy considerations
  • Incorporating policy change assessments into policy operation design

The main findings about different aspects of policy analysis addressed in this volume are highlighted in Chapter summaries.

164 pages

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Contents

Preface, Contents, Abbreviations [ PDF: 91kb | 7 pages ]

Overview [ PDF: 65kb | 4 pages ]

Introduction
The Macroeconomic Context of Sector Policy
Dimensions of Sector Policy Analysis
Assessing the Effects of Policy Change
Assessing the Poverty Impact of Policy Change
Assessing the Processes and Costs of Policy Change
Incorporating Policy Change Assessments into Program Design

Chapter 1 – Introduction [ PDF: 69kb | 4 pages ]

Chapter 2 – The Macroeconomic Context of Sector Policy [ PDF: 107kb | 8 pages ] Summary [ HTML ]

  1. Introduction
  2. Macro-Meso-Micro Framework
  3. Importance of rhw Macroeconomic Context
  4. Scope of the Macroeconoic Assessment

Chapter 3 – Dimensions of Sector Policy Analysis [ PDF: 437kb | 21 pages ] Summary [ HTML ]

  1. Introduction
  2. Sector Analysis Concerns
  3. Linkages Between Policy Reform and Development
  4. Scope of Sector Analysis
  5. Price Policy Context
  6. Institutional Context
  7. Reform Timing and Sequencing Issues

Chapter 4 – Assessing the Effects of Policy Change [ PDF: 544kb | 12 pages ] Summary [ HTML ]

  1. Introduction
  2. Assessing the Effects of Policy Change
  3. Approaches to Analysis

Chapter 5 - Assessing the Poverty Impact of Policy Change [ PDF: 108kb | 11 pages ] Summary [ HTML ]

  1. Introduction
  2. Mechanisms for Poverty Reduction
  3. Current POverty Impact Assessment Practice at ADB
  4. Review of Current ADB Practice
  5. Modifying the PIA Matrix
  6. Operational Considerations

Chapter 6 – Assessing the Processes and Costs of Policy Change [ PDF: 327kb | 8 pages ] Summary [ HTML ]

  1. Introduction
  2. Understanding Reform Costs
  3. Fiscal Environment for Policy Reforms

Chapter 7 – Incorporating Policy Change Assessments into Program Design [ PDF: 74kb | 6 pages ] Summary [ HTML ]

  1. Introduction
  2. Integrating Policy Analysis and Operation Design
  3. Conditions as a Guide to Implementation
  4. Linking the Program Framework and Reform Monitoring

Case Studies and Other Information

Program Loan Reports Reviewed [ PDF: 40kb | 2 pages ]
ADB Experience on the Macroeconomic Context Section of Program Loan Reports [ PDF: 68kb | 5 pages ]
Case Illustrations for Application of Analytical Techniques [ PDF: 1,901kb | 48 pages ]
Adjustment Costs in ADB Policy Operations—An Inventory of Approaches Used [ PDF: 87kb | 15 pages ]

Glossary [ PDF: 57kb | 1 page ]

Bibliography and References [ PDF: 82kb | 9 pages ]


ISBN 971-561-491-4
Publication Stock No. 040703
Asian Development Bank
P.O. Box 789, 0980 Manila, Philippines


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