The DIA + Tool is launched and available!

DG INTPA G4 is happy to announce the launch of the Distributional Impact Assessment + (DIA+), a new tool developed by the European Commission, to effectively identify the income or consumption distribution of target populations. The DIA+ allows an assessment of the exact percentage of program beneficiaries who will fall within the bottom 40%. This next-generation tool is therefore designed to help EU Delegations and other partners assess the socioeconomic impact of their development interventions, ensuring they effectively reach and benefit the most disadvantaged populations, while ensuring that we collectively contribute to SDG 10. 

What is the DIA+? What is its added value? How can it be used? All these questions will be answered in the article below! 

What is the DIA+ and why was it created? 

The DIA + is not entirely a new tool. In 2023, the European Commission adopted the Inequality Marker, and as part of its methodology, a Distributional Impact Assessment tool (DIA) was adopted. 

The DIA and the DIA+ share some common characteristics. Both provide an evidence-based assessment on the potential inequality-reducing effects of a development intervention. The DIA can inform ex ante, during the design phase, and ex post, whether the poorest 40 per cent have been targeted. An intervention might have multiple components, but the DIA can be performed only on those for which it is possible to identify the targeted beneficiaries. 

What is the main difference between the DIA and the DIA+? Contrary to the DIA+, the DIA only provides information about the beneficiaries’ assets (e.g. cars, computers, etc.), which typically serve as the basis for estimating wealth status. To determine whether direct beneficiaries of development interventions are at the bottom 40 per cent of the wealth distribution, the DIA relies on the Equity Tool (EQT). The EQT is a quick, low-cost and user-friendly tool that measures relative wealth (or household assets) based on nationally representative survey data from Demographic Health Surveys, Multiple Indicator Cluster Surveys, and other household surveys with information on household assets. The EQT relies on a small set of questions (around 10-15), which help identify the wealth quintile of the individual (in line with SDG 10.1.1). Yet, the asset-based DIA has some limitations. In addition to requiring the availability of up-to-date survey data, including asset-related information, the DIA also does not provide a complete understanding of the socio-economic status of a beneficiary, overlooking key aspects such as income or consumption. 

Faced to these limitations, DG INTPA G4 has developed a complementary instrument, called DIA+, capable of rigorously and cost-effectively assessing the income or consumption expenditure levels, rather than solely focusing on their assets. The DIA+ should therefore be seen as an updated version of the DIA, complementary rather than replacing it. Thanks to the DIA and the DIA+, you can now have a complete picture of the socio-economic impacts of your programs by assessing either the wealth, income, or consumption quintiles of your program’s beneficiaries. 

Why should you use the DIA+?

DIA+ offers several advantages:

• Enhanced Targeting: Ex-ante, the DIA+ can support EU delegations in ensuring that activities benefit the poorest 40% or the most vulnerable populations and establish the baseline of the logical framework. It is therefore appropriate to conduct the DIA+ during the design phase of a given program's activities (but not too early, before activities have been approved or agreed upon with implementing agencies).
• Inequality-based Evaluation: Ex-post, the DIA+ can be used to monitor and assess the results of your programme. The DIA+ assesses the income or consumption distribution among the targeted beneficiaries of development interventions and helps determine whether the project contributes to inequality reduction in the recipient countries or regions.
• Intersectionality: The DIA+ does not only provide information on the bottom 40%, but also considers intersectionality, in particular gender, age, ethnicity, etc. 
• Adaptability: The DIA+ can be used across national, urban, and rural contexts, making it adaptable for projects with diverse geographical scopes.
• Broader application: By including the DIA+ to the asset-based DIA, it will be possible to conduct DIA studies in a larger number of countries, since income or consumption surveys are collected more regularly. This work is crucial in improving the evidence base on the effects of development interventions on inequality reduction.
• Cost-Efficiency: By focusing on a reduced set of questions, the DIA+ offers a cost-effective approach to estimating income and consumption distributions of your program’s beneficiaries.

The DIA+ tool is available to all stakeholders and represents a significant step forward in the European Commission’s efforts to promote equity through development projects. We encourage you to reach out to DG INTPA G4 (mathilde.cournut@ec.europa.eu) or HISP if you would like to receive the methodology or require further information.