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Table: Sample of factors to consider in PESTEL

POLITICAL DIMENSION

Refers to the political systems in term of state structure, governance and policy-making process, both formal and informal. Some factors to be analysed could be:

  • Type, of state (i.e. centralized vs federal) and regime (i.e democratic vs authoritarian)

  • Role and organizational shape of the state

  • Electoral processes

  • Power sharing between tier of the state, or between the state and other non-state actors;

  • Public Policy analysis (policy framework, policy relevance and credibility);

  • Coherence of existing policies both with internal and international commitments

ECONOMIC DIMENSION

Refers to the economic structure of the country, both formal and informal.
Some factors to be analysed could be:

  • Respective role of state and private sector

  • Market typology

  • Formal vs informal and illegal economy

  • Relation and relative weight of local, national and international economy

  • Banking system…

SOCIAL (or SOCIO-CULTURAL) DIMENSION

Refers to the social characteristic of the country, including traditional values and attitudes. Gender focused analysis are particularly relevant for EUD, as gender mainstreaming is requested in all interventions. Some factors to be analysed could be:

  • Demographic composition

  • Social structure

  • Migration trend

  • Ethnic composition

  • Cultural diversity

  • Religious diversity

  • Typology of existing social institutions

TECHNOLOGICAL DIMENSION

Refers to the availability of technology in the country, both in term of hard and soft competencies. This may include:

  • Available technology (per sector, at local, national or regional level)

  • Conformity with intervention quality standard

  • Accessibility of technology by population

  • Dissemination and access to new technologies

  • Engagement in development and research

  • Performance of higher education

  • State investment in technological development and dissemination

ENVIRONMENTAL DIMENSION

Refers to environmental issues both at local and global level (i.e. climate change); it is particular relevant for EUD as environmental assessment is mandatory for all interventions. Il may include:

  • Geography (regional, national and local level)

  • Weather trend (regional, national or local level)

  • International commitment an national regulation

  • Implementation of existing regulation (willingness, capacity, credibility)…

LEGAL DIMENSION


Refers to the legal framework in place. It is particularly relevant for EUD as commitment to Human Rights is intrinsically connected to all EUD interventions through the Right Based Approach. It may include:

  • Commitment to international convention / treaties

  • National legislation

  • Alternative sources of legislation (customary law)

  • Coherence between national legislation and adherence to international commitments

  • Implementation willingness / capacity

  • Ethical issues (i.e. privacy)


  • Step 3: Exclude unfeasible interventions and identify more promising entry points. Existing contextual factors will be critically confronted, against the specific EU mandate in the country as defined in the programming phase.

  • Step 4: Use of the Context Analysis findings to inform the intervention logic. PESTEL analysis findings will inform more focused analysis, moving toward the design of a specific intervention rooted in the context and in line with the EU mandate.

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