Poverty and Social Impact Analysis: Linking Macroeconomic Policies to Poverty Outcomes: Summary of Early Experiences

IMF Working Papers, February 1, 2003

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Objective: Present early experiences of poverty and social impact analysis (PSIA) from the PRGF-supported programs in the African Department.
Scope: Illustrates how staff country reports have taken first steps toward PSIA by making more explicit the links between poverty and policies, including examples from countries with limited data.

Many staff country reports have begun to incorporate PSIA by explicitly linking poverty and policy choices.
Even where relationships between policies and poverty outcomes are complex and analysis is not definitive, it is possible to assess some potential poverty effects with limited data.
PSIA can contribute to a more informed policy debate and policy design by clarifying potential poverty effects of macroeconomic policies.
PSIA can help design policies that are more pro-poor by:
- Defining appropriate compensatory and complementary measures where appropriate.
- Supporting country ownership of reforms by promoting public debate on trade-offs between policy choices.

PRGF policy advice would benefit from more systematic use of PSIA.
Staff country reports could report more on potential policy trade-offs and poverty outcomes based on PSIA to inform policy choices and public debate.

Subject: Inflation, Oil prices, Poverty, Poverty reduction, Poverty reduction strategy, Prices
Keywords: Africa, Inflation, Macroeconomic policies, market price, Oil prices, policy action, policy advice, Policy analysis, policy choice, Policy simulation, poverty, poverty analysis, poverty impact, poverty implication, poverty issue, poverty outcome, Poverty reduction, Poverty reduction strategy, public debate, track poverty impact, WP