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Poverty & Social Impact Assessment: Lessons Learned from Indonesia

Poverty & Social Impact Assessment: Lessons Learned from Indonesia. Asep Suryahadi The SMERU Research Institute www.smeru.or.id. PSIA. Ex ante analysis of the distributional impact of a policy change, focusing on the poor Complementary to and to be used as inputs for PRSP.

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Poverty & Social Impact Assessment: Lessons Learned from Indonesia

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  1. Poverty & Social Impact Assessment: Lessons Learned from Indonesia Asep Suryahadi The SMERU Research Institute www.smeru.or.id

  2. PSIA • Ex ante analysis of the distributional impact of a policy change, focusing on the poor • Complementary to and to be used as inputs for PRSP

  3. SMERU’s Involvement in PSIA: • Rice Import Tariff Pricing (with DFID) • Consolidation of Participatory Poverty Assessment Works (with JBIC)

  4. Rice Import Tariff Pricing • Choosing the policy  consultation with stakeholders • The policy question: Should the tariff on rice import be increased? • Two opposing arguments: > High tariff  higher incomes for famers > Low tariff  the poor are net consumers

  5. Methodology I. CGE Modelling  Effects of tariff increase: • Consumer price of rice • Income from wage labor • Profits from farming • Relative prices  Existing studies only look at the issue partially

  6. Methodology (continued) II. Policy Interests Matrix  Key stakeholders have different insterests: • Policy objectives • Rationale/argument • Benefits • Constraints • Transmission chanell • Degree of influence

  7. Outcomes • CGE modelling captures both sides of the rice tariff debate well • Policy interests matrix increases transparency and inclusion

  8. Policy Development • Prior to and during the PSIA (Aug - Oct 2002) the announcement of rice import tariff increase was imminent • Until now the tariff increase was never announced • PSIA impact ???

  9. Lessons Learned • Process-oriented  identify losers & winners from a policy reform • Limited time frame, existing studies, data availability, & analytical skills • There is a need to foster commitment, understanding, coordination, & common vision to tackle the problem of poverty

  10. Lessons Learned (continued) • The need to understand decision making process and to involve key decision makers • Capacity building for CSO • Consolidation of existing works vs original study • The impact of PSIA on decision making is severily restricted by its voluntary nature

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