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Policy for the Health Sector : The Bank’s involvementin the health sector
Performance of health sector lendingOverall performanceThe performance of health sector lending in the Bank has been comparable to other sectors. Based on formal evaluations carried out by the Operations Evaluation Office, there have been no unsuccessful health sector projects, while the average for the Bank is 11 percent (see Appendix 2). The amount of delay has been slightly higher than other sectors, and there have been fewer “generally successful” projects (33 percent compared with the Bank average of 57 percent). Possible reasons for the lower proportion of generally successful projects include (i) 50 percent of the health projects that have been postevaluated were the first Bank-sponsored health sector projects in the country, while the comparable figure for all postevaluated Bank loans was 32 percent; and (ii) all the postevaluated health projects were approved more than 13 years ago, and therefore do not reflect the newer focus on PHC, which the Bank has been utilizing since the beginning of the 1990s. As indicated in Appendix 2, there has been a substantial improvement in the design of Bank loans since the early 1990s. Monitoring and evaluationA major factor complicating the evaluation of completed health sector projects is the lack of objective indicators of success contained in the original designs. Of health projects approved prior to 1994, only 52 percent had chosen one or more objective indicators of success during appraisal (none had indicators for each component), 28 percent had collected benchmark data, and only 17 percent presented data for nonproject areas even though all had components that were limited to a specific geographic area. In the projects where the executing agency was supposed to develop indicators after appraisal, this rarely occurred. Overall, few of the projects approved before 1994 complied with the Bank’s guidelines on benefit monitoring and evaluation. The picture has improved sig-nificantly since 1994 (see Appendix 2) as a result of increased recognition by health sec-tor staff of the importance of monitoring and evaluation (M&E). Nonetheless, much work still needs to be done, particularly in ensuring the collection of baseline data and consistent use of appropriate comparison groups. Other aspects of project designA sector synthesis conducted by the Bank’s Operations Evaluation Office based on findings from 12 postevaluated loans, and a separate in-depth analysis of all 35 health sector loans approved until December 1998 carried out by the Bank for this paper (see Appendix 2), point to the following conclusions:
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