Monitoring and Evaluation

First, a poverty monitoring system is needed to track key indicators over time and space and see if they change as a result of the strategy. Thus, Section 1 of the chapter discusses how to set up a poverty monitoring system: how to define key indicators, track them over time, and see what changes have taken place. Many countries already have poverty monitoring systems in place, so the task is to assess their adequacy and strengthen them as necessary. Experience shows that elements such as the tracking of public expenditures and outputs and quick monitoring of household well-being need special attention. Also, participatory data collection methods and qualitative information give a different perspective and should not be overlooked.

Second, rigorous evaluations should be done selectively to assess the impact on poverty of interventions that are key components of the strategy. Section 2 of the chapter looks at how to decide when it makes sense to do a rigorous impact evaluation, and how to design and carry out an impact evaluation, including what data are needed for different methodologies and how to get the data.

Other types of evaluation, such as assessing the process of formulating a poverty reduction strategy, can also be useful. Section 3 discusses this topic - briefly, as there is only limited experience so far. The section also briefly discusses another challenging topic: evaluating the impact of poverty reduction strategies as a whole, as opposed to the impact of specific components of a strategy such as programs or single policies. The key point made here is that a solid monitoring system will provide the basic data necessary to conduct such evaluations, should the need arise in the future.

Both monitoring and evaluation activities need to be carried out by institutions that are competent and that have strong links to key decision-makers, if they are to be useful in the design and implementation of a poverty reduction strategy. Much monitoring and evaluation takes place without adequate development of in-country capacity and without strong links to key decision-making processes; thus, precious opportunities to learn what works and what does not are lost and funds are sometimes. Section 4 offers guidance on how to build capacity and in particular strengthen the processes that provide policymakers and others with feedback on the impact of policies and programs. A key message of this section is that dissemination of results is critical for use. Results that are not widely disseminated, through mechanisms tailored to different groups in civil society, will not be used, and the resources that were spent in getting such results will be wasted.

Non-governmental actors-be they research institutions, civil society organizations, special-interest and advocacy groups, or others-have an important role to play in the design of the monitoring and evaluation system, in actually carrying out monitoring and evaluation activities, and in using the results. Section 5 discusses the role of these actors.

A Guide to Resources at the end of the chapter contains references to other sources of information. Technical Notes and Case Studies provide more detail on specific topics and country examples.

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