Poverty and Social Impact Analysis

Poverty and Social Impact Analysis (PSIA) helps governments to understand the impact of their policy decisions on the poor. With this knowledge, governments can be better prepared to mitigate anticipated negative consequences. At the same time, PSIAs also enable those most affected by policy choices to be heard in the political decision-making process. With resources from the Government of Belgium, in 2005 UNDP and the World Bank started collaboration on a global joint PSIA project. The project aims to develop capacities in developing countries to carry out Poverty and Social Impact Analysis (PSIA) and to use this analysis in designing their national development strategies. Since 2009, with funding from the Government of Norway, UNDP is carrying out analyses to assess the impact of the economic crisis in developing countries and to generate policy responses to mitigate human development impacts.