The Poverty and Social Impact Analysis (PSIA) Approach was developed by the World Bank with
support from several bilateral development agencies in 2001. The need for a PSIA is driven from the
assumption that different individuals are likely to be affected differently by various programs and
policy reforms. The PSIA is a set of tools to analyze the impact of policies on the well-being of
different social groups, with particular focus on the poor and those vulnerable to impoverishment. It
seeks to support poverty reduction through better policy, particularly, in low-income countries..
The assignment of the upstream Poverty and Social Impact Analysis for Egypt’s Solid Waste
Management Reform comes with the main objective of influencing the objectives and features of
the SWM sector reforms at its inception, rather than waiting for the details of the reforms to be
solidified and to then assess their likely impacts. In this sense, the PSIA will evaluate the different
impacts of each policy alternative in order to assess its likely outcomes on equity, effectiveness, and
feasibility. The Current policy directions for the reform of the SWM sector involve formalization of
the SWM sector, expanded involvement of private sector operators and roll out of partial cost
recovery system for households and enterprises.