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PAL Policy Analytics Lab

  

Developing a Conceptual and Measurement Framework for “Inclusion into Productivity” 30 April 2026

Project Name: Developing a Conceptual and Measurement Framework for “Inclusion into Productivity”

Country: Global

Start Date: 01-2026

End Date: 04-2026

Client Name: Islamic Development Bank (ISDB)

Project Details:

PAL was commissioned by the Islamic Development Bank (IsDB) to develop a conceptual and measurement framework for "Inclusiveness into Productivity" (IIP), a core pillar of the Bank's 2026–2035 Ten-Year Strategic Framework.

The assignment produced a white paper that first diagnoses why productivity gains have become increasingly decoupled from inclusive participation across OIC member countries, examining firm-level productivity dispersion, weakening diffusion and business dynamism, spatial inequalities, and labor market constraints. It then benchmarks MDB impact measurement approaches and proposes the IIP Framework, structured around four interconnected mechanisms: access, participation, upgrading, and diffusion.

The framework is operationalized through a Theory of Change and a three-layer monitoring and evaluation architecture comprising a country-level composite index, a country scorecard, and a program and project-level evaluation agenda. The paper also positions IsDB's Islamic finance instruments as natural entry points for implementing IIP logic in member country operations.

The deliverable is a white paper intended to support IsDB's internal advocacy, strategic positioning among peer MDBs, and subsequent empirical operationalization.

The report has not been published by the client. To access the table of contents please click here.