Evaluation

	Table of Contents
p. 2 of 9 BACK | NEXT Preface The Beginnings The Changing Context The New Modus Operandi Evaluating Operations Performance Directions in Evaluation Influential Evaluations Managing Knowledge Conclusions

The Asian Development Bank (ADB) created a Postevaluation Office in 1978 to assess whether the actual benefits of completed projects were commensurate with those expected at appraisal and, if not, to explain the reasons for divergence. Thirty years later, the function of operations evaluation at ADB has changed from recording history to shaping decision making throughout the project cycle and in ADB as a whole. Today, the core task of the renamed Operations Evaluation Department (OED) is the systematic and objective assessment of policies, strategies, country programs, and projects, including their design, implementation, results, and associated business processes, to determine their relevance, effectiveness, efficiency, and sustainability. By this process of evaluation, ADB demonstrates three elements of good governance:

• accountability, by assessing the effectiveness of ADB’s operations;
• transparency, by independently reviewing operations and publicly reporting findings and recommendations; and
• improved performance, by helping ADB and its clients learn from past experience to enhance ongoing and future operations.

The Beginnings

Evaluation was neither part of the initial activities nor the structure of ADB when it was established in 1966—there was little to evaluate until operations got under way. A system was established in 1972 for measuring results against intentions. While the main focus of such evaluation was historical, the object was to improve the planning, appraisal, and implementation of ADB’s operations. The Economics Office, with the assistance of consultants, provided the internal evaluation capability, while academic institutions and nonprofit organizations were contracted to perform external evaluations. The role of ADB’s operations departments was to make background information available.

By 1977, a total of 17 evaluation studies had identified factors contributing to success or failure of projects. The main product was the project performance audit report. Importantly, 1977 also saw a review of evaluation policies and procedures to increase the impact of evaluations on ADB’s operations. The result was the creation in 1978 of a separate unit, the Postevaluation Office, reporting directly to the President. Evaluation activities were reviewed by the Audit Committee of the Board of Directors. The office was staffed with four professionals, plus the Chief. In 1979, it began to codify its work by developing standards and procedures for producing project performance audit reports, and it released its first summary of findings and recommendations from evaluation.¹

Broader evaluations were introduced in 1982. By 1986, performance evaluation had become important enough to merit a theme chapter in ADB’s Annual Report. In 1993, the establishment of the Task Force on Improving Project Quality signaled ADB’s determination to improve its standards of performance and to enhance the effectiveness of its operations. The Task Force identified the major themes underlying project quality to be

• ADB responsiveness to its developing member countries (DMCs),
• DMC ownership and capacity, and
• accountability for project quality in ADB.

In 1994, the Board of Directors endorsed the Report of the Task Force.² The action plan contained in the report drew on findings and recommendations from evaluation. In 2000, the scope of project performance audit reports was broadened to include achievement of benefits, measured against a logical framework. A brief account of independent evaluation at ADB since 1978 is appended.

____________________
¹ There are two types of evaluation: independent and self-evaluation. Self-evaluation is conducted by those responsible for designing and implementing a country strategy, program, project, or technical assistance activity. It comprises several instruments, including project/program performance reports, midterm review reports, technical assistance or project/program completion reports, and country portfolio reviews. Independent evaluation is undertaken by an evaluation department or by evaluators outside of the organization. This paper discusses only independent evaluation undertaken by OED.
² ADB. 1994. Report of the Task Force on Improving Project Quality. Manila.

Back Preface	Next The Changing Context