ABSTRACT
Chapter 3 identified significant definitional and conceptual critiques of Political Economy Analysis (PEA). This chapter unpacks PEA as practised by major multilateral development banks (MDBs), including the World Bank and the Asian Development Bank (ADB) and bilateral aid agencies such as the Swedish International Development Cooperation Agency (SIDA) and the UK Department for International Development (DFID). Commonalities and the evolution of thinking are tracked through the use of tools and methods employed. Drawing on critiques of PEA presented in previous chapters, and the contemporary use of PEA, the chapter explores alternative approaches both conceptually and practically, to explore contributions to political economy understandings in development. The current focus on Doing Development Differently, Thinking and Working Politically and diverse but related tools and methods which bring a political economy focus to bear is then introduced to explore whether critiques of PEA are being addressed in alternative forms. The discussion concludes with an analysis of the shifting ground of political economy in theory and practice in response to PEA critiques to date, highlighting the lack of engagement with contemporary political and economic challenges, namely, the rise of populism, and illiberal democracy, the emergence of a de-globalisation narrative and the challenge to western-led development orthodoxy (the Washington Consensus), by the so-called Beijing Consensus.
