Guidance Note Use Of Political Economy Analysis For Adb Operations

Political economy analysis facilitates understanding on how incentives, institutions, and ideas shape political action and development outcomes in ADB’s developing member countries (DMCs). These factors can inform assessments of feasibility of policy reform and institutional change, the contribution that ADB and other development partners can realistically make, and the risks involved. A political economy analysis can, therefore, strengthen the design of more effective support, leading to better development results. While important for all DMCs, political economy considerations especially matter in DMCs with fragile and conflict-affected situations. This guidance note develops a definition and parameters for political economy analysis to ensure consistency; and to guide country, sector, and project teams in analysis. It provides ADB staff with guidance on how political economy analysis can be used to inform the design and implementation of ADB operations for more feasible and sustainable development outcomes.

Bangladesh has transformed its economy over the last 2 decades, graduating to middle-income status as average annual growth remained strong at 5%–6%. The country’s goal to become an upper-middle-income country by 2021 will require even stronger annual growth of 7.5%–8%. This study finds that the most critical constraints to growth are (i) insufficient reliable energy supply, (ii) policies that indirectly stunt development of economic activities unrelated to ready-made garment exports, and (iii) insufficient security about property and land rights due in part to inadequate registry systems. If policies are designed to urgently tackle these constraints, Bangladesh will be free to harness its potential for inclusive and sustainable growth.

This book analyses the shortcomings of the Western development aid programme. Through exploring the evolution of aid over more than seven decades, development is examined as an industry with a variety of motives and actors. The driving forces and dynamics in the relationship between aid and economic development are highlighted in relation to faulty development structures and misaligned aims. With a particular focus on Egypt, radical questions are posed on how global aid and development can be improved, including how it can respond to the COVID-19 pandemic. This book aims to present an alternative aid framework to help overcome the dysfunctionality of the current international development system. It will be of interest to researchers and policymakers working within development economics and development policy.

Supporting its developing member countries (DMCs) affected by fragility and conflict is a high priority for the Asian Development Bank (ADB). This is demonstrated by ADB's adoption of its 2007 approach, which responds to the special challenges faced by DMCs experiencing conditions that are now generally described as fragile and conflict-affected situations (FCAS), and by ADB's endorsement of the New Deal for Engagement in Fragile States in 2011. ADB's Strategy 2020 reinforces its commitment to FCAS. This publication provides details on actions that ADB will take to improve the development impact of its support to DMCs that are experiencing fragility and the effects of conflict on either a national or subnational level.

Across the world the Western dominated international aid system is being challenged. The rise of right-wing populism, de-globalisation, the advance of illiberal democracy and the emergence of non-Western donors onto the international stage are cutting right to the heart of the entrenched neoliberal aid paradigm. Foreign Aid in the Age of Populism explores the impact of these challenges on development aid, arguing that there is a need to bring politics back into development aid; not just the politics of economics, but power relations internally in aid organisations, in recipient nations, and between donor and recipient. In particular, the book examines how aid agencies are using Political Economy Analysis (PEA) to inform their decision making and to push aid projects through, whilst failing to engage meaningfully with wider politics. The book provides an in-depth critical analysis of the Washington Consensus model of political economy analysis, contrasting it with the emerging Beijing Consensus, and suggesting that PEA has to be recast in order to accommodate new and emerging paradigms. A range of alternative theoretical frameworks are suggested, demonstrating how PEA could be used to provide a deeper and richer understanding of development aid interventions, and their impact and effectiveness. This book is perfect for students and researchers of development, global politics and international relations, as well as also being useful for practitioners and policy makers within government, development aid organisations, and global institutions.

Energy efficiency is often defined as delivered energy service per unit of energy supplied into a system. Supply-side energy efficiency refers to decreasing energy losses in the supply chain, for improved performance in the production and delivery of electricity and heat. Demand- side energy efficiency (DSEE) is achieved through consuming less energy for the same level of service, for improved efficiencies at the point of final energy use. DSEE, in particular, offers vast potential to meet regional energy needs in Asia, yet supply-side strategies tend to be prioritized as a focus of investment and planning. Over the past decade, the Asian Development Bank (ADB) has succeeded in quickly scaling up its investment in energy efficiency and the development of renewable resources within its developing member countries through ADB’s Clean Energy Program. This report examines prospects to accelerate lending and investment for DSEE in Asia, in light of trends that are driving energy use and policy and regulatory change in developing countries. Such efforts can help realize the full potential of DSEE as a least-cost, low-carbon resource for energy security, environmental protection, and sustainable and inclusive growth benefiting all Asians.

This volume examines the impact of the Trump presidency on development aid. It starts out by describing the rise of national populism, the political landscape and the reasons for rejection of the political establishment, both under Trump and internationally. Next, it gives a historical-political overview of development aid in the post WW-II era and discusses the dominant Washington Consensus doctrine and its failure. It then provides a critique of the Official Development Assistance (ODA) discourse and reviews the political economy of ODA, the discourse, and the conditionalities that are barriers to socio-economic development. The final chapters explore the question of Trumponomics as an alternative to the global neoliberal ODA, and the potential impact of Trumponomics’ on ODA. The book concludes with thoughts on the potential future directions for ODA within the ‘ideals’ of Trumponomics and national populism.