Reflections on the Macro-Micro Linkages in the Analysis of Development Policy: A Developing Country Perspective

Abstract

Better understanding of the macro-micro linkages in the analyses of economic development policies, programmes and strategies is important for those poor countries that have recorded slow progress in poverty reduction after years of development initiatives and aid inflows. This paper reflects on how analyses of the policy linkages can be improved to look beyond just the economic setting of the macro-meso-micro policy channels covering policy makers and economic agents (households, firms and institutions), and include non-economic explanations of development. It is noted that quantitative (macroeconomic/microeconomic) models of development do not often capture all facilitating or inhibiting factors; hence the need to supplement the assessment by qualitative methods of analyses. The study emphasises the need for analysts to sharpen capacity in the application of “double-Q methodologies” and multi-disciplinary approaches to research and analysis of development policies and programmes.