Building capacity for policy analysis

This paper attempts to examine the concept and scope of policy analysis and to distill the lessons of experience in building the capacity for policy analysis in a number of developing countries over the past three decades. It concludes that strategies for developing indigenous capabilities for policy analysis will vary from country to country. In countries where non-government clientele and sources of support are limited but government is interested, the initial focus should be on strengthening government capability. Countries where there is demand for policy analysis in both the government and private sector may be ripe for arm's length centers for policy analysis. If such centers are not appropriate, private sector associations could help set up policy analysis units. In countries where the private sector is weak, academic institutions with close links to government may help create some local capability.