• Module 2.2: Understanding the socioeconomic context
  • Module 2.2.5: Multidimensional poverty analysis
EXAMPLE
Defining a national MDP measure, Timor Leste

As part of preparing a national poverty reduction strategy, Timor Leste’s General Directorate of Statistics (GDS) in collaboration with UNICEF explored options for the construction of a national MDP measure. Constructing a national measure of MDP requires decisions around several core elements, including dimensions, indicators, data source, and aggregation method. This options paper transparently explores some of these important considerations, including what parameters, indicators and thresholds are to be used, and discusses data sources and data disaggregation. It then describes the process and rationale by which a MDP measure for Timor-Leste was decided upon and developed.

Ultimately, the dimensions chosen for inclusion in a national MDP measure for Timor Leste were WASH (Water and Sanitation), Living Standards, Information (for adolescents and youth), Nutrition (for children under 6 only), Health, Education (for individuals 6 years and older), Employment (adolescents and youth), and Child Protection (for children under 6).

Using the measure, the report then presents an assessment of the current situation for each municipality in the country, disaggregating for different age groups and by gender. Among the findings, it is noted that the MDP poverty headcount is higher than the headcount calculated using a simple monetary poverty index. The MDP measure also illuminates a higher deprivation in rural areas, and a substantially lower one in urban areas, which the report attributes to the fact that MDP captures access to goods and services, as well as outcomes, which tend to be more lacking in rural areas.

2.2.1 Political economy analysis
EXAMPLES

Korba, in Chhattisgarh, is India’s top coal producing district. This report looks broadly at what a just transition means for Korba and how it might approach the task of planning for just transition. 

The analysis centres on defining various aspects of the political economy of coal in the district. Sections 2 to 5 present detailed background on the district’s economy, its coal mining sector, the jobs and livelihoods implications of the sector, as well as the standard of social infrastructure (such as access to education and healthcare) and the community’s socio-economic and biophysical resilience. The analysis of the economic dimensions of the coal sector extends beyond jobs and income, to also consider the way the coal-centred economy has hindered growth and employment in other sectors like agriculture. It also looks at the implications for public revenue of declining coal production.

The study’s method is based on primary data from interviews, focus groups and surveys of stakeholders, as well as analysis of extensive government and industry data and other available literature. 

The analysis is used to inform guidance on how to plan for a just transition as the coal industry phases down over time. 

2.2.2 Stakeholder mapping
EXAMPLES

The study aimed to describe and understand the stakeholders’ role in organic farming management. Stakeholder analysis is carried out to identify, classify, map, and analyze relationships between stakeholders

A case study approach was used, where data were collected through observation and interviews with stakeholders. Observation activities were used to obtain an overview of the stakeholders active in organic farming in the Bogor area, while interviews helped to provide a deeper explanation of the interests and power of each stakeholder. 

The sampling technique used snowball sampling. Interviews were conducted with key informants, generally the head of the institution or those responsible for the institution concerned, and several critical informants from the community. The key informants came from the City Food and Agriculture Security Service (DKPP) and the Bogor Regency Food Crops, Horticulture, and Plantation Service, the local government, the Indonesian Organic Alliance (IOA), Organic Certification Institute (LSO), farmer groups, organic product entrepreneurs, Agriculture and Technology Park (ATP) at IPB University, universities, and the community. 

The results categorized the stakeholders into four groups: key players, subjects, context setters, and others (“the crowd”).

As part of preparing the Ghana Green Jobs Strategy, a mapping of stakeholders was undertaken to identify those actors which provide high-level policy planning and direction for promoting green development and green jobs in Ghana, and others that are relevant to ensuring the effective coordination and implementation of the Green Jobs strategy in different sectors and also across districts.

The mapping focused on various sectors, namely: renewable energy sector, agriculture sector, construction sector, eco-tourism and nature-based tourism sector, waste management and recycling. Stakeholders included not only domestic actors but also international partners, such as development agencies that have worked with Ghana in respective sectors.

Stakeholders were mapped according to their interest (or potential for impact) and their influence (or power) in relation to the goals and activities of the Green Jobs Strategy. Potential roles for these stakeholders in implementing the Strategy are identified as capacity building, job creation, policy implementation, project implementation, policy development and implementation, provision of green skills and training, policy advocacy, and provision of financial resources.

A recommendation arising from the development of the Strategy, and from the stakeholder mapping, was for the establishment of a Green Jobs Strategy Programme Coordination Unit (PCU) and ministerial coordination committee, as well as sectoral technical committees that can bring different stakeholders together within each sector.

Agricultural production contributes a major share of GDP in both Tajikistan and Uzbekistan. This report maps out the different stakeholders who will be relevant for efforts to shift to more sustainable consumption and production patterns in the agri-food production and processing sectors in both countries. 

The report is an initial draft mapping of stakeholders. In the first phase, a long list of relevant stakeholders for pre-defined stakeholder groups was compiled, using expert knowledge and desk research. Then, local consortium partners refined the initial lists based on their deep knowledge of the local context. In the second phase, each stakeholder was assigned a relevance score, based on a review of websites and other grey literature regarding their activities, services, projects implemented, and level of expert knowledge. The third phase involved the visualization of the information into a stakeholder map.

Its purpose was to inform the engagement strategy of the Resource Efficiency in Agri-Food Production and Processing (REAP) project, including by assessing the capacity of different stakeholders to implement REAP and other similar projects. In the longer term, it is also intended to help small and medium enterprises in this sector to build out networks so that collaboration and learning can continue beyond the timeframe of the project itself. 

The stakeholder mapping provides a list of relevant actors who can be drive the policy changes in countries, like National Governmental Organisations and International Development Organisations, as well as other stakeholders who can be involved in inclusive multi-stakeholder roundtables and dialogues.

In Colombia, the research organization Fedesarrollo undertook a stakeholder mapping as part of developing an engagement strategy around just transitions. The mapping process focused initially on stakeholders who are likely to be directly impacted by transition, rather than include all interested stakeholders, in order to avoid stakeholders feeling that this was just “another (broad) development strategy”. Stakeholders were considered more likely to engage if the discussion focuses on direct, tangible effects in specific regions.

In the initial mapping, Fedesarrollo:

  • identified a first group of relevant national public sector entities by reviewing the NDC and relevant climate plans to identify the ministries/agencies tasked with responsibility for action in each sector, including the Labor ministry which the NDC tasks with preparing a Just Transition strategy by 2023);
  • reviewed existing labor market analysis for the country, to identify the sectors which today already face significant labor market challenges, and mapped how these sectors overlap with sectoral transitions flagged by the NDC. The main stakeholders in these overlapping sectors were then identified and included in the stakeholder map;
  • identified the labor unions that represent key sectors which the NDC flags may be affected by transition, as well as several other labor unions who have a strong voice in labor market debates broadly;
  • identified NGOs and academia working on these issues (climate, just transition); and
  • at a regional level (i.e. in those specific parts of the country where transition risks may be high), identified organizations and individuals working on climate change issues, as well as regional environmental authorities and unions and firms that are operating at the regional level in potentially affected sectors. The institutional structure at a regional level is more disorganized or less structured than nationally, so it was more challenging to complete the stakeholder mapping at a regional level.

As debate about transition planning gains traction, the mapping and scope of engagement can be broadened, to bring in other stakeholders who may be indirectly impacted, as well as institutions who may be relevant to addressing these impacts and to wider social or economic policy.

2.2.3 Policy and institutional mapping
EXAMPLES

The governance of labor migration has grown in complexity. Having effective labor migration policies requires a coordinated approach with employment, education and training priorities at the national, regional and international levels. Lack of coherence can exacerbate inefficiencies in the labor market, resulting in substantial mismatches between labor supply and demand. Recognizing these challenges, the ILO has prepared General practical guidance on promoting coherence among employment, education and training, and labor migration policies

Piloting this guidance, an assessment of policy coherence was undertaken across the 15 Member States of the Economic Community of West African States (ECOWAS). The assessment covers coherence in the design of employment and education and training policies linked to labor migration and their effective implementation. Coherence in implementation is assessed by measuring the effective use of the policies put in place and the links between them. 

The assessment looked at both policies and institutional frameworks. The ILO guidance identifies labor migration policy coherence at four levels: local, national, regional and international, of which this assessment looked at the top three levels; the local level is represented by local authorities (provinces, municipalities, etc.) or agencies with decentralized branches (e.g. public employment services), but was not covered by this assessment due to resource constraints. 

The assessment considered both the vertical dimension of policy coherence, which focuses on collaboration in a specific area between different levels of governance such as the AUC and ECOWAS Member States; and the horizontal one, which reflects coordination among the different policy fields such as labor migration, employment and education/training policies. 

The labor migration policy coherence levels were analyzed through desk review and analyses of relevant documentation and data. Field research was also used, in the case of Nigeria only, where semi structured interviews were used to collect additional information and data from key stakeholders in labor migration, employment and education/training policies, and social partners, at subregional and national levels. The interview questions used for fieldwork are included in an Annex of the report. 

The report presents a detailed summary of the policy context, using the eight principles outlined in the ILO’s General practical guidance on promoting coherence among employment, education and training, and labor migration policies. It also details recommendations for improving coherence.

Many Indian coal power plants are likely to be decommissioned in the coming decades, as the country’s coal fleet ages and the policy and economic pressure on the sector builds. Chapter 3 in this report assesses whether India’s legal framework provides adequate guidance, mandates, and resources to ensure power plant decommissioning happens in a way that will deliver fair and inclusive outcomes for the natural environment, livelihoods, labor and the private sector.

The assessment reviewed many laws relating to labor, environment, finance and land, with particular respect to the coal mines, as well as environmental laws regulating air quality, water, forest conservation, and other aspects of environment protection. It also reviewed India’s guidelines on mine closure.

The chapter concludes that, without reform, India’s current laws and regulatory mechanisms are unlikely to deliver a just closure and transition process in the coal sector. It suggests reform measures are necessary in the areas of environmental regulation, land laws, labour laws and financial regulations, to address various key gaps, including:

  • There is no legal mandate to decommission a thermal power plant, meaning a power plant can be retired and remain ‘as-it-is’ without legal repercussions. There are no comprehensive guidelines for just decommissioning that identifies how environmental, labour, land and local economy-related issues should be handled. There are no laws that govern the clean-up and remediation works for power plant decommissioning, or even industrial decommissioning.
  • There is no policy at either state or national government levels on how the land would be repurposed. The condition in which leasehold land has to be returned (to government) is often not elaborated in the contract with generating or mining companies.
  • Indian labour laws are not designed for large-scale closure of industrial facilities; there is no policy or law to enable a just transition of all types of workers to allow peaceful and systematic closure. The closure of plants is viewed mainly in terms of the potential dispute between the owner and the workers. There are no provisions in the Contract Labour (Regulation and Abolition) Act, 1970 to provide social security or reskill unemployed labour. There is no consistent policy relating to the transfer, retirement, reskilling or re-employment of the power plant employees.
  • Decommissioning costs are not factored into the financial calculations while setting up the TPP. So, no funds are kept aside by the power plant owners for end-of-life activities. Under current financial accounting principles, the decommissioning cost is not part of liability of GENCOs and is not reported.

This report presents a legal assessment for ensuring a just transition in the coal mining sector, in the context of future coal mine closures.  The design of laws and regulatory mechanisms will influence the repurposing opportunities for land and infrastructure post-closure, the availability of support to help transition the workforce, access to social safety nets, and the way environmental health and safety risks will be addressed for communities. 

The assessment looks at the scope and effectiveness of laws and regulations relating to coal mine closure in the areas of environmental, land and labour issues. It identifies some gaps or inadequacies in the current legal framework that will need to be addressed if a just closure and transition process is to be supported. The analysis finds, for instance, that land repurposing prospects will be constrained by an absence of guidelines that facilitate the transfer of coal mining land to state governments after mine closure. It also identifies that the financial resources available to ensure environmentally and socially responsible closures are inadequate, environmental monitoring and compliance is fragmented, and labour laws have inadequate security provisions to support contractual and informal workers who are affected by mine closures. 

2.2.4 Gender analysis
EXAMPLES

This assessment, by the World Bank and statistics agencies in Bosnia and Herzegovina (BiH), presents a broad picture of the main gender disparities in BiH in endowments, economic opportunities, and agency. The report focuses on the household and individual members’ bargaining power and their ability to access (i) endowments, education, health and physical assets, (ii) economic opportunities, labor market, employment, entrepreneurship, and (iii) agency, political participation and voice, gender-based violence, and the legal framework. It provides evidence of general patterns of gender gaps across socio-demographic groups. Different chapters of the report cover:

  • ‘agency’ and factors which may shape the process how men and women use their endowments and utilize economic opportunities to achieve desired outcomes;
  • gender disparities in endowments, such as health and education; and
  • gender gaps in the labor market, entrepreneurship and earnings, access to finance and poverty.

This fact sheet summarizes an analysis of the way NBSAPs have been prepared across different countries, demonstrating the kinds of issues that may indicate the extent of gender mainstreaming in the strategy. The analysis looks at: the occurrence of gender-related keywords; the way women are characterized in the plans (i.e. whether as vulnerable, as beneficiaries, as stakeholders, and/or as agents of change); the inclusion or not of women-specific goals and objectives, and activities that specifically target the empowerment and/or involvement of women; and whether plans explicitly recognize the specific knowledge that women may have in relation to the subject matter.

The ADB has published various gender assessments for countries in Asia and the Pacific between 1999 and 2019. These provide insight into the kinds of methodologies, data sources, and analytical parameters that a country-based gender assessment might draw on.

The Pakistan assessment was prepared with extensive input from national and provincial governments in Pakistan and various non-government organizations. It documents trends in indicators of gender equality and women’s empowerment, and explores the reasons for lack of progress in some areas, outlines the legal frameworks and institutional contexts that support or hinder progress toward gender equality and women’s empowerment, and summarizes lessons from the design and implementation of prior development programs targeting gender equality and women’s empowerment in different sectors.

A mixed-methods approach was used to gather data and evidence. The team based findings and conclusions by utilizing (i) quantitative data on sex-disaggregated indicators; (ii) qualitative information provided from key interviewees, participants in focus group discussions, and observations made during site visits; and (iii) quantitative data and qualitative information and analysis available in documents on gender and development in Pakistan, including evidence on the gender impacts of programs and initiatives of the government, private sector, civil society, and development partners. A total of 114 interviewees were consulted in preparing the assessment. These were primarily representatives from across government, the private sector, some non-government organizations (NGOs), and development partners, selected for their expertise in policy, evaluation, research, and/or services delivery related to gender equality and/or women’s empowerment.

The assessment report includes various recommendations for actions that can improve gender equality outcomes, including: Policy development and reform (e.g. promoting industries that employ women, providing greater recognition and support for home-based work, and strengthening capacity to better integrate gender in policies and investments across a wide range of government portfolios and in infrastructure planning); Programme development in areas including education, employment and transport where there are significant gender gaps; Enhancement of public sector capacity for gender-related planning and budgeting; and, Strengthening of the evaluation, research and statistics functions that are needed to undertake future assessments and to track progress.

The sector analyses and case studies (Volume 2) dive deeper into the situation in specific sectors: Education; Energy; Finance; Rural and urban development; Population, health and nutrition; Reconstruction (post-conflict and natural disasters); Social protection; and Transport.

This very detailed Situation Analysis presents an assessment of women’s development programs in Myanmar, exploring the progress made and challenges remaining toward realizing gender equality and women’s rights.

The final report reflects different perspectives shared through multi-stakeholder workshops that involved government ministries, civil society groups, and United Nations agencies and other international development partners working in Myanmar.

This analysis consolidates existing data (which, it acknowledges, is limited in some areas) on gender equality and women’s rights in various critical areas of women’s lives: Livelihoods and participation in the economy; Education; Health care; Violence; Women’s leadership and political participation; and the Peace processes. For each area, the analysis draws together various forms of available quantitative data at a national level, and also data disaggregated regionally and by gender.

While acknowledging data challenges, the report proposes concrete recommendations for implementing the National Strategic Plan for the Advancement of Women, with actions identified across all of these areas.

2.2.5 Multidimensional poverty analysis
EXAMPLES

The Seychelles’ MPI is estimated using the Alkire Foster (AF) methodology. This methodology combines two aspects of poverty: the percentage of people who are poor, and the intensity of deprivation (i.e. how poor they are). The analysis first constructed a poverty profile for each household, which shows in which indicators the household faces deprivation, and then aggregated these deprivations (for each person or household) into a weighted deprivation score. Then, these were compared with a selected poverty threshold to distinguish “non-poor” individuals and households from those it categorizes as “poor”.

The data used to calculate the employment aspects of the Seychelles MPI comes from a special module that was attached to a Quarterly Labour Force Survey (QLFS) in 2019. Other MPI indicators, relating to living standards and housing, health, and social issues, were generated from the MPI module attached to the QLFS.

The analysis presented in the report disaggregates results by household size, age, employment status, the sex of head of household, education levels of head of household, and by island to highlight any geographic differences.

As part of preparing a national poverty reduction strategy, Timor Leste’s General Directorate of Statistics (GDS) in collaboration with UNICEF explored options for the construction of a national MDP measure. Constructing a national measure of MDP requires decisions around several core elements, including dimensions, indicators, data source, and aggregation method. This options paper transparently explores some of these important considerations, including what parameters, indicators and thresholds are to be used, and discusses data sources and data disaggregation. It then describes the process and rationale by which a MDP measure for Timor-Leste was decided upon and developed.

Ultimately, the dimensions chosen for inclusion in a national MDP measure for Timor Leste were WASH (Water and Sanitation), Living Standards, Information (for adolescents and youth), Nutrition (for children under 6 only), Health, Education (for individuals 6 years and older), Employment (adolescents and youth), and Child Protection (for children under 6).

Using the measure, the report then presents an assessment of the current situation for each municipality in the country, disaggregating for different age groups and by gender. Among the findings, it is noted that the MDP poverty headcount is higher than the headcount calculated using a simple monetary poverty index. The MDP measure also illuminates a higher deprivation in rural areas, and a substantially lower one in urban areas, which the report attributes to the fact that MDP captures access to goods and services, as well as outcomes, which tend to be more lacking in rural areas.

This report provides many insights into how MDP analysis has been undertaken and used around the world, in various areas of development planning, and highlights lessons for future application. Various of the country case studies concisely illustrate the need and use cases for MDP analysis in different contexts, where it has been used for policy and program design.

The report categorizes the use of MDP analysis into different “impact pathways”, namely: (i) as a tool for raising awareness and “changing the language and concept” of poverty, (ii) to help identify concrete policies and programmes that better target poverty reduction; and (iii) to embed the concept of multi-dimensional poverty in government agendas.

Among the use case examples described, MDP has been used:

  • in Mexico, to provide detailed information on the types and degrees of poverty across the 570 municipalities of Oaxaca province, highlighting the most pressing deprivations. The analysis informed the preparation of a poverty reduction strategy that targeted 40 top-priority municipalities, helping it to focus on the areas with the greatest concentration of poor people, in terms of absolute numbers and percentages. Data was used to identify the number of homes lacking basic services such as drinking water, electricity, drainage, a solid roof or floor, and the number of people without access to healthcare services, social security, or education. Interactive maps were then created to illustrate the degree and intensity of deprivations in each municipality, even indicating by street the areas with the highest concentration of the population experiencing the given deprivation, to identify the areas of the municipality that should be prioritized for interventions.
  • in Jordan and Burkina Faso, to inform the design of cash transfer programmes. In Jordan, the Hajati program uses a twofold approach to identify and target households: the first step is geographical targeting, where districts with high multidimensional vulnerability, high pressure on public services (measured by the presence of double shift schools) and the availability of complementary services (for example, the presence of child protection centers) are identified. The geographic targeting was then followed by household targeting, based on a separate survey. The same approach was used again in 2020 amidst the COVID-19 pandemic, to rapidly assess the need of crisis-affected populations.
  • in Kenya, to support the formulation of sub-national development plans (County Integrated Development Plans). As a result of the disaggregated multidimensional child poverty measurement, many of these plans now prioritize clean water and sanitation, child protection, and HIV and AIDS as key issues for intervention. Housing and education are other areas where the MDP analysis identifies significant deficits.
2.2.6 Social protection system analysis
EXAMPLES

This analysis uses the Asian Development Bank’s Revised Social Protection Index: Methodology and Handbook (ADB, 2012) to assess the coverage and depth of social protection measures in Vanuatu and to develop a national Social Protection Index (SPI).

The report briefly overviews Vanuatu’s social and economic context, and its current social protection programs, before describing the method used for deriving a social protection index and for disaggregating social protection expenditure for different groups, including by gender and by poverty status (poor or non-poor). The analysis identifies four main social assistance programs in the Republic of Vanuatu: Home Island Passage Allowance, scholarship allowance, family assistance support program, and disaster assistance.

It draws data and information from various sources including National Accounts, UN data, and National Population and Housing Census, including records of relevant agencies where social protection data is available. Data was also obtained from the Department of Finance and other responsible agencies for social protection programs in Vanuatu. It notes difficulties encountered in data collection, include lack of information on some social protection programs.

This report presents an analysis of the efficiency and effectiveness of Angola’s social protection expenditure via social insurance (the civil servants and private sector workers’ pension schemes), social assistance, active labor market programs, social care services, and other subsidies.

It presents an overview of the macroeconomic context and fiscal challenges facing the government, as well as the major sources of vulnerability for Angolan households. The report also identifies those groups who are most vulnerable and the principal risks they face. It then assesses public social protection expenditures, and evaluates how effective and efficient selected safety net programs considering their targeting, level of support, costs, implementation arrangements and other indicators.

The analysis concludes that very limited resources are being targeted to the poorest households, and an even smaller portion reaches those most in need directly. It identifies some promising developments in the Social Protection sector which may help to address this in future.

In light of the Social Protection Policy Framework (SPPF) published by the Cambodian government in 2017, this report assesses Cambodia’s social protection needs, maps the social protection sector and examines its adequacy, and investigates the distributive impact of social protection and tax policy. It recommends policy-related strategies that could improve the inclusiveness of the social protection system in Cambodia.