The development paradigm has shifted toward private investment, and the private sector has become central in development strategies. There is much to be learned about how to effectively facilitate and mobilize private sector contributions to development. Effective monitoring and evaluation (M and E) systems are critical for learning to catalyze private sector development. In line with this advance, the International Finance Corporation and the Multilateral Investment Guarantee Agency are developing and refining their M and E efforts. In this Biennial Report on Operations Evaluation, the Independent Evaluation Group takes stock of the evolution of the M and E systems in the two organizations, assessing their adequacy, coverage, and quality, as well as their respective results measurement systems. IEG acknowledges progress by the two institutions. IFC has advanced its systems for gathering, analyzing, and applying project information and has strengthened its coverage of indicators that measure results. Information from M and E has become more prominent in its business decisions. However, the institution’s corporate goals are built on indicators of client reach that cannot be solely attributable to IFC, so there is no credible articulation of IFC’s impact. MIGA has introduced self-evaluation of its projects and started gathering some standard development indicators. As a result, individual learning is taking place in the institution. The report shows the importance of IFC and MIGA managements continuing their efforts to deepen M and E and improve their systems. To gain the full benefit of learning from evidence that M and E brings to light, key areas need improvement. IEG offers recommendations for IFC regarding quality, verification of data, and tracing effects. For MIGA, IEG notes that it needs to adapt and streamline its evaluation approach to fit its business practices.

This series continues to strengthen its focus on results, monitoring, and evaluation. The latest 2006 edition updates the implications of managing for results in World Bank operations, assesses if monitoring and evaluation practices provide staff with information that helps them manage for results, and looks at IEG's own effectiveness. Its recommendations address ways to make monitoring and evaluation more effective and influential tools.

The '2005 Annual Report on Operation Evaluation' examines the use of information by World Bank managers to improve development results and enhance the effectiveness of the Bank at the country level. It suggests that greater attention is needed to measure and manage development results at the country level. This will require strengthening countries' performance measurement capacity. The Bank is making progress in strengthening the results focus of its monitoring and evaluation, but more attention is needed to improve performance measurement and tracking progress.

An effective state is essential to achieving socio-economic and sustainable development. With the advent of globalization, there are growing pressures on governments and organizations around the world to be more responsive to the demands of internal and external stakeholders for good governance, accountability and transparency, greater development effectiveness, and delivery of tangible results. Governments, parliaments, citizens, the private sector, NGOs, civil society, international organizations and donors are among the stakeholders interested in better performance. As demands for greater accountability and real results have increased, there is an attendant need for enhanced results-based monitoring and evaluation of policies, programs, and projects. This Handbook provides a comprehensive ten-step model that will help guide development practitioners through the process of designing and building a results-based monitoring and evaluation system. These steps begin with a OC Readiness AssessmentOCO and take the practitioner through the design, management, and importantly, the sustainability of such systems. The Handbook describes each step in detail, the tasks needed to complete each one, and the tools available to help along the way."

This review provides an independent assessment of the World Bank Group's performance in achieving key development objectives, with a special focus on support for environmentally sustainable development consistent with economic growth and poverty reduction.

About the Operations Evaluation Department of the World Bank from 1973 to 2003.

The Annual Report on Operations Evaluation series continues to strengthen its focus on results, monitoring, and evaluation. This latest edition updates the implications of managing for results in World Bank operations, assesses if monitoring and evaluation practices provide staff with information that helps them manage for results, and looks at IEG's own effectiveness. Its recommendations address ways to make monitoring and evaluation more effective and influential tools.