Transcript Introduction to PEA and links with CCF_TTx

What is a Political Economy Analysis,
and what is its value for Climate Change Finance?
Thomas Tanner
Institute of Development Studies, UK
My own political economy journey
Tinyurl.com/pecc2011
Challenging Assumptions
political
Climate change is a largely technical challenge
Climate change governance requires capacity building
negotiating institutions, interests and ideologies
Climate change finance is an extension of ODA implies
transfers based on equity and responsibility
What is political economy?
Political economy variously interpreted as:
Production, distribution and accumulation of economic surplus
within a class-divided society (Marx)
Relationship between the state and the market (‘Regulation’)
Process governing, and distribution of, power and wealth
between groups (OECD)
Dominant role of power and ideology in affecting decision
making processes and resource allocation (Clapp and
Devergne; Tanner and Allouche)
What is political economy analysis?
Political economy analysis seeks to understand:
Interests and Incentives
Norms and Institutions (formal and informal)
Values, Culture, Ideas, and Ideologies
...and how these shape political action and development outcomes
What is political economy analysis?
Political economy analysis seeks to understand:
Interests and Incentives
...and how these shape political action and development outcomes
What is political economy analysis?
Political economy analysis deals with:
Interests and Incentives
Norms and Institutions (formal and informal)
...and how these shape political action and development outcomes
What is political economy analysis?
PoliticalMarket-liberals:
economy analysis deals with:
Forests, markets and economic
growth
Interests
and Incentives
Institutionalists:
Forests and governance
Visions of
REDD+
Norms and Institutions (formal and informal)
Bio-environmentalist:
The ecological value of forests
Social greens:
Humans and ecology inseparable
Values, Culture, Ideas, and Ideologies
...and how these shape political action and development outcomes
CorePEA Methods
Actor
network
mapping
Interviews and informal conversation
(shadow networks)
Workshops, games, scenario exercises
and trade-off analysis
Why is PEA useful for climate finance
Improved effectiveness
Baselines of actors, formal institutions and flows
Understand how change happens, what is feasible
Widen participation, improve accountability
Match different possible finance options to national conditions
Understand donor political economy too...
PEA Risks and challenges
Vested interests can resist and block change
Incentives range from cultural norms to illegal acts
Time-consuming: Trade-off urgency and effectiveness
Opening processes to wider voices can lead to
contestation and conflict
BUT...
Surely some PEA is better than making false assumptions?
Thank you
More on political economy of climate change at:
tinyurl.com/PECC2013
Summary article at:
tinyurl.com/Incheon2013
NEW!
Climate Change and Development Book
tinyurl.com/tannerhorn