The literature review is the first output of phase 1 of the EC project Guidance on Political Economy Analysis1 in the Education Sector in Fragile Situations. The objective of the project is to enhance the effectiveness of EC education aid, particularly in fragile situations. Its purpose is to adapt, apply and share practical experiences of political economy analysis in the education sector, particularly in fragile situations. The project is being implemented by CfBT Education Trust. It follows on from a global study made up of eight country case studies conducted in 2009 regarding the Governance Challenges in Education in Fragile Situations.