Managing for Development Results at ADB

Results Matter December 2007

Building a Results-Based M&E System in Sri Lanka
By Velayuthan Sivagnanasothy, Department of Foreign Aid and Budget Monitoring, Ministry of Plan Implementation, Sri Lanka

The author (second from left) talked about Sri Lanka’s results-based M&E system at the 2007 Annual Meeting of the Community of Practice on MfDR

The Ministry of Plan Implementation (MPI) has introduced the results-based management (RBM) and reporting system with performance indicators to track development results of the line ministries and their programs. Logical Framework Analysis and Results Framework are being increasingly used in planning and monitoring and evaluation (M&E) arrangements within the Government. Line ministries are required to justify their budgets with well-defined output/outcome indicators. The Department of National Budget and Treasury has revised their budget circulars to focus on “results” to institutionalize performance budgeting systems. The Government’s 3-year Medium-Term Expenditure Framework incorporates outcome-based key performance indicators to justify public expenditure and helps allocate resources rationally onia results-oriented manner. All these developments clearly indicate that the concept of “managing for results” set out in the Paris Declaration is being institutionalized and is moving forward in Sri Lanka.

The Government’s MfDR Strategy
A strong link exists between the MPI, Ministry of Finance and Planning, and President’s Office; they work very closely with each other on the M&E strategy. Major achievements on M&E strategy include the following:

• A home-grown, user-friendly, national, web-based electronic online project monitoring system has been established in the MPI to track the implementation progress (financial/physical) and results of all development projects and programs.
• A comprehensive Performance Measurement System is being piloted with four key line ministries (M/Education, M/Health, M/Agriculture, M/Highways). An RBM core group has been established to drive this initiative with the leadership of the MPI secretary. The experiences of the North American RBM models operated in Oregon, Minnesota, and Virginia were considered in developing a localized model.
• The Government has established a localized results reporting system for the Millennium Development Goals, for which data collection support is extended by the Department of Census and Statistics and is being widely used within the Government.
• The MPI undertakes ongoing, ex-post, and impact evaluation of selected mega projects and disseminates evaluation findings to concerned stakeholders.
• The MPI has established a web-based Post-Evaluation Information System to ensure effective dissemination of evaluation findings, lessons learned, and synthesis of such findings. Such evaluation information will provide sector-wise synthesis to ensure more effective feedback and help integrate evaluation findings into the planning and budgeting process.
• The Sri Lanka Evaluation Association acts as a catalyst in advocacy; awareness creation; training; and helping develop standards, ethics, methodologies, and best practices to improve evaluation culture.

Issues and Challenges

• To ensure successful operation of RBM systems, “incentives” for achievements and some form of “penalty” (punishment) for slippage.
• M&E institutions and the planning institutions seem to function in isolation and do not have an effective formalized feedback arrangement to integrate lessons into the planning and design of new projects. Therefore, it is necessary to establish strong links between the M&E on the one hand and policy formulation, reforms, planning, budgeting, and resource allocation functions on the other.
• While recognizing the demand side of the equation for creating local demand for MfDR with utilization focus, the supply side of the equation that includes skills, procedures, methodology, data systems, manuals, etc. has to be addressed as well.
• It is necessary to look at the balance between learning and accountability. In some cases, RBM creates fear of being held accountable for performance when cooperation and assistance outside the organization are necessary for success. Also, the weak link between “agency performance” and “individual performance” is a concern.
• Development agencies tend to shift from projects and programs to a sector-wide approach. As such, an M&E approach needs to cover policies, sectors, and thematic areas on a countrywide basis. Policy, sector, and thematic evaluations are becoming equally important.
• RBM systems often create “information overload” which decision makers find difficult to absorb. It is necessary to understand who needs what information, for what purpose, and when.

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