- IDB enhances the quality and accountability of its projects
- All IDB projects are independently audited
- IDB sets development effectiveness goals for 2015
- IDB to lend more for poverty alleviation. climate change
Apr 8, 2010
IDB boosts lending development impact; sets effectiveness goals for 2015
Bank adopts robust evaluation systems to measure how its projects improve people’s lives
The Inter-American Development Bank is making strides to enhance the quality and accountability of its projects in Latin America and the Caribbean and is setting itself specific goals to boost its efficiency and development impact over the next five years, according to an internal report released today.
The Development Effectiveness Overview is an account of the IDB’s ongoing efforts to improve its operations’ outcomes by using a new Development Effectiveness Framework. Approved in 2008, the framework has allowed the Bank to put in place more robust systems to ensure the projects it finances can measure how they improve people’s lives.
Besides analyzing the framework’s implementation, the report sets a number of quantifiable goals to assess the IDB’s contribution to economic and social development in the region through 2015. The new systems being put into action underscore the Bank’s commitment to meet results and duly document them, the report said.
Since 2008, the IDB has increased the number of projects that incorporate high standards for evaluation. At the same time, all projects are now being independently audited in a timely manner after their completion.
The IDB increased four-fold the number of projects with very high levels of measurability to 22 percent, while programs with low levels of measurability decreased to 11 percent. Project completion reports – an important tool to ensure accountability – have risen to unprecedented levels, reaching 83 percent of all projects concluded in 2008.
The new systems will ensure the IDB is able to fulfill its mission of fostering sustainable and inclusive development in Latin America and the Caribbean over the coming years.
The Development Effectiveness Overview includes a results framework that sets several goals for the next five years, such as boosting the IDB’s support for small and vulnerable countries, poverty reduction and regional integration; as well as financing more climate change and renewable energy projects.
For example, lending for climate change initiatives, renewable energy and environmental sustainability will jump five-fold to 25 percent of total lending in 2015, up from 5 percent in the 2006-2009 period. Lending for poverty reduction and equity enhancement programs will grow to 50 percent of total approvals from 40 percent at present.
Regarding effectiveness, by 2015 the IDB aims to increase the percentage of projects with satisfactory results to at least 70 percent in the case of sovereign guaranteed loans and 80 percent of non-sovereign guaranteed operations.
The IDB expects to reduce administrative expenses to $34,000 per $1 million of operations approved. The Bank plans to increase the number of women in senior and managerial positions to 35 percent, up from 28 percent in 2006-2009. By 2015, 40 percent of its professional staff will be based in borrowing member countries, up from 26 percent in 2006-2009.
The results framework also sets ambitious goals for measuring the IDB’s contribution to the region’s development between 2012 and 2015, as part of a general capital increase, including:
- More than double the number of children benefitting from IDB-backed education projects to 8.5 million from 3.2 million in the 2005-2008 baseline period.
- Increase more than tenfold the number of persons receiving basic health packages to 23 million from 2 million in 2005-2008.
- Nearly double the number of households with new or upgraded water supply to 2.8 million from 1.5 million in 2005-2008.
- Increase fivefold the number of households with upgraded sanitary connections to 3.6 million from 680,000.
- Add 3 million people to civil registries.
- Provide 8.5 million people with low carbon transportation systems.