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This guidance provides information on how USAID can think and work in ways that are more politically aware — an approach known as “thinking and working politically” (TWP) 1 — through the use of applied political economy analysis. PEA is a structured approach to examining power dynamics and economic and social forces that influence development. Through programming that seeks to more rigorously respond and adapt to these realities, USAID is working to improve the effectiveness and sustainability of its international development efforts.