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Our peers

Our peers - Multilateral Development Banks

In 1996, the multilateral development banks joined forces to improve and standardize the development impact measurements of their private sector operations. They founded the Evaluation Cooperation Group (ECG) of Multilateral Development Banks (MDBs), which agreed on the first Good Practice Standards (GPS) for evaluation of private sector operations in 2001. The second version of the GPS was issued in 2003 (GPS-2), and the third in 2006 (GPS-3).

The ECG commissioned an external consultant to carry out three benchmarking exercises. The first, against GPS-1, was completed in 2002; the second, against GPS-2, in 2005; and the third, against GPS-3, in 2010. The Final Report on the third benchmarking GPS exercise was accepted by the ECG members at the end of November 2010.

In each benchmarking exercise, IFC’s system has consistently shown a high level of alignment to the GPS, in part because IFC’s evaluation system served as a model. For example, the third benchmarking found consistency with adoption of GPS 3 ranging from 46% to 98%, and consistency with adoption and substantially full application ranging from 44% to 93%.

The ECG hired a consultant to prepare a revision of the private sector GPS and to propose the 4th GPS. The first draft of the 4th GPS was presented by the consultant during the ECG meeting in late November 2010. The second draft will be discussed by the ECG members in mid March 2011, during the upcoming ECG meetings in Manila.

Benchmarking exercises by the Evaluation Cooperation Group

Our peers - International Financial Institutions

As IFC is continuously upgrading its measurement systems, we wanted to learn from different approaches currently in practice and commissioned an expert consultant to compare the different systems of ten international financial institutions, including bilateral development institutions that are not part of the Evaluation Cooperation Group. The 2007 study found that IFC continues to be at the forefront of development results measurement, for example through tracking the development results of its entire portfolio throughout the project cycle, publishing the results in the Annual Report, and using an external assurance provider to review the systems, practices, and development results data.

Expert Comparison Study: Report

Joint Reporting on Managing for Development – COMPAS
The Common Performance Assessment System (COMPAS) report, an annual publication, was first launched in 2005 by the MDB working group on Managing for Development Results (MfDR) with the purpose of providing a platform for the member MDBs to jointly report on their performance. For the first time in 2007, the COMPAS featured the MDBs’ private sector operations.

The private sector section of the report focuses on efforts made by MDBs to better manage for development results in private sector operations and to harmonize systems and frameworks for monitoring and evaluating private sector operations. Indicators draw on the GPS for evaluating private sector investments, but also capture other indicators related to managing for development results throughout the project cycle - from early review through closure.

The responsibility for coordinating COMPAS reporting typically rotates among the participating MDBs. The World Bank Group led the preparation of the 2008 report, and IFC coordinated inputs relating to private sector operations. The 2008 report shows that MDBs have made progress in strengthening their focus on results and harmonizing evaluation standards and practices in line with published GPS.

Subsequently, the Evaluation Cooperation Group of the MDBs evaluated COMPAS in 2009/10. The evaluation found that COMPAS is currently the only comprehensive source of comparable information on how the MDBs manage themselves for improved development results, that the majority of indicators had strong links to development results, and that the data and information provided in the four COMPAS reports have progressively improved in terms of content, clarity, and coverage. The evaluation also found that COMPAS was a useful networking opportunity and that – on the private sector side – this opportunity was used relatively more for knowledge sharing and lessons learning. However, the evaluation also found that to enhance the usefulness of the report there was a need to improve the completeness and consistency of information, to systematically use COMPAS for knowledge sharing and lessons learning also on the public sector side, and to better integrate the results frameworks that have been developed in different MDBs into the report.

Also during 2009/10, the participating MDBs engaged in a series of meetings focused on how to best improve the usefulness of COMPAS, drawing in part from the recommendations of the ECG evaluation. The resulting agreement among MDBs seeks to streamline indicators while preserving valuable information, refreshing also the format in which the report is structured. As in the 2008 report, data will allow analyzing trends through time within each MDB; and the further refining of indicators definitions will further improve the quality and comparability of information captured in the report. On an exceptional basis, the World Bank Group is again leading the publication of the next COMPAS, expected for early 2011.

Working with bilateral International Financial Institutions

IFC is also working with bilateral international financial institutions (IFIs) towards greater harmonization and information sharing on development results measurement. IFC and the German DEG co-hosted a meeting of CEOs of IFIs in September 2008, following which a working group led by the Dutch FMO was formed. The group is working towards greater harmonization of development results measurement among IFIs.

Links to other Selected Multilateral Development Banks

Links to Selected Bilateral Development Banks