Monitoring and evaluation at Development Finance Institutions

Development Finance Institutions (DFIs) are increasingly expected to thoroughly report on the impacts of their operations, particularly on development and poverty reduction. Some DFIs have adopted specific monitoring and evaluation (M&E) systems to assess the developmental impact of their activities and make adjustments throughout the project cycle when necessary. Given DFIs’ increased role in the development landscape, analysing these systems is opportune to identify their strengths and weaknesses, and to find out ways in which they can be improved.

This briefing puts forward a framework to assess M&E systems against the following criteria: governance; development impact; effectiveness; and financial additionality. The framework seeks to find answers to the following questions, among others: are developing countries’ poverty reduction strategies and project stakeholders formally integrated throughout the project cycle? To what degree is information about country and project work being automatically disclosed? Have DFIs adopted formal “lessons learnt” mechanisms to integrate evaluation findings in future projects?

The briefing serves as a thought-provoking exercise in assessing ways of analysing and scrutinising DFIs’ M&E systems. As such, it should also be considered as an invitation to join the discussion.

Click here to read the briefing.