Monitoring and evaluation (M&E) are integral tools for assessing the efficiency and effectiveness of investment operations.10 The design of M&E systems must be undertaken early in project preparation, and M&E systems must come into effect when implementation begins. Early definition of project objectives, identification of sound performance indicators, and clear reporting requirements are important for effective M&E systems. Baseline studies and benchmark indicators can provide the basis for the M&E process. Agricultural investment operations need to identify responsible institutional locations for M&E responsibilities and ensure the availability of qualified staff with ownership of the M&E system.
Invariably, Project Appraisal Documents (PADs) discuss M&E at the end of the reporting requirements, and supervision missions—mostly occupied with institutional, procurement, and financing issues—relegate M&E discussion to a minor element in progress reports. Both the World Bank QAG and the OED have consistently pointed out that attention is urgently needed to strengthen M&E systems and to improve performance and impact measurement. A Sustainable Agriculture Knowledge and Institutions (SASKI) thematic group review of agricultural research and extension projects found that only about 25 percent of the projects reviewed had adequate M&E plans (World Bank 2003). M&E issues as they relate to potential for scaling up are highlighted in the Overview section of each module in this Sourcebook. This investment note summarizes key aspects of M&E that should be considered in the design and implementation of agricultural operations.
Monitoring and Evaluation Systems
Monitoring is defined as “the continuous assessment of project implementation in relation to agreed schedules and the use of inputs, infrastructure, and services by project beneficiaries” (Operational Directive [OD] 10.70). Evaluation is defined as “the periodic assessment of the relevance, performance, efficiency, and impact (both expected and unexpected) of the project in relation to stated objectives” (OD 10.70). Thus monitoring focuses on project inputs and deliverables, whereas periodic evaluation (such as the mid-term review, completion reports, beneficiary assessments, impact studies, and so forth) establishes causality and attribution.
Monitoring and evaluation systems are designed to inform project management of whether implementation is going as planned or corrective action is needed. A well-designed M&E system provides data on the progress of a project and whether it is meeting objectives. These data may indicate that adjustments are required in the project to take into account different circumstances in the local environment.
10 This investment note draws from the M&E sections of Sourcebook modules, World Bank (2004), and Rajalahti, Woelcke, and Pehu (2005).
 
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