Defending Dignity A Manual for National Human Rights Institutions on Monitoring Economic, Social and Cultural Rights Political economy analysis might be carried out in a way that focuses on: • Macro-level country analysis: to enhance sensitivity to the country context and understanding of the broad political economy environment • Sector-level analysis: to identify specific barriers and opportunities within particular sectors (e.g. health, education, roads) • Problem-driven analysis: to help understand and resolve a particular problem or examine a specific policy issue (e.g. public financial management reform). Although there are a number of different approaches for conducting political economy analyses (e.g. interviews, community consultations), there are some common concepts they seek to address. Concept Description Structures Fixed or systemic features that affect the political economy of a country, which tend to change only slowly over time and are beyond the direct control of stakeholders. Examples: economic base and level of development, climate and geography, population dynamics, status of poverty and equity/inequality, patriarchal gender dynamics. Institutions Related to the “rules of the game,” including formal and informal institutions. Examples: constitutional set-up, electoral rules, political system, body of law, structure of government and ministries, policy and budget processes, social norms and expectations, patronage networks, rent-seeking arrangements. Actors, stakeholders and interest groups Individuals and organized groups who have influences, power relations and positions. Where individuals or organizations have similar aims and face similar incentives, they may be recognizable as a distinct interest group. Examples: political parties, ministries, the military, business associations, NGOs, religious organizations, trade unions, farmers’ associations, external donors, foreign investors, other governments, international crime organizations. 134 Incentives Incentives are the driving forces of individual and organized group behaviour. They depend on a combination of: (i) the individual’s personal motivations (material gain, risk reduction, social advancement, spiritual goals) and (ii) the opportunities and constraints arising from the individual’s principal economic and political relationships. Perverse incentives are those that have an unintended and undesirable result (i.e. that encourage a duty bearer to act contrary to his or her obligations). Historical legacies Because historical legacies can shape current dynamics profoundly, summarizing key trends, events, processes and policies, especially in relation to the project that is being assessed (e.g., impact of colonial and postcolonial era on education policy choices). Rents and rent-seeking Income generated by privileged access to a resource or politically created monopoly rather than productive activity in a competitive market. Some political systems revolve around the creation and allocation of such incomes, hence “rent-seeking”. Patronage networks and “clientelism” A political system where the holders of power (patrons) seek to maintain their position by directing privileges to particular individuals or groups (clients) in a manner that is intended to strengthen political support and/or buy off political opponents. Patronage politics is a common explanation of why governments often direct resources towards narrow groups of beneficiaries, rather than the public good. In such a system, formal and informal institutions (strongly) diverge, and informal rules destabilize formal ones.