Effectiveness for Improving Lives
Development effectiveness

Development Effectiveness

The Development Effectiveness Framework (DEF) is the tool the IDB uses to ensure that projects produce tangible and positive results for beneficiaries in our 26 borrowing members in Latin America and the Caribbean. The IDB Board of Executive Directors approved the DEF in October of 2008 to enhance the performance and accountability of IDB investments and to ensure that we continuously learn from those operations. 

The DEF promotes good practices to design, implement, and evaluate projects. The DEF is based on four principles (or success factors):

First, alignment: This addresses country-specific and Bank-wide strategic approaches to provide tailored solutions. 

Second, effectiveness: This ensures that projects are evidence-based to address development needs and provide solutions. It also ensures that projects set clear and verifiable objectives, and it establishes monitoring and evaluation mechanisms. 

Third, efficiency: This safeguards resources by ensuring that project benefits exceed costs. It promotes cost-efficient interventions. 

And fourth, risk and sustainability: This encourages proper risk management and the establishment of favorable conditions to sustain a project’s results going forward. 


The DEF features various tools to guide project design and provide incentives to change the behavior of project teams so that they design operations that achieve the results that are promised when the operations are approved by the IDB Board of Directors.


During the pre-design stage we have the Institutional Strategy and the Corporate Results Framework or CRF. The strategy and the CRF are a set of objectives, indicators, and targets to guide or work and measure and monitor our progress.  Along with country strategies, the Institutional Strategy and the CRF help IDB-financed projects align and jointly drive performance in support of IDB objectives. 


At the design stage we have the Development Effectiveness Matrix or DEM. The DEM is a checklist of good practice standards to design and monitor evidence-based projects. It also ensures cost-benefit investments and the establishment of appropriate monitoring, risk management, and evaluation mechanisms. 

Project execution

During project execution we have the Progress Monitoring Report or PMR. The PMR is a semiannual report that periodically compares intermediate results against preestablished targets. The PMR warns project teams of potential problems during execution. 


During the evaluation phase we have the Project Completion Report, which records the achievement of project objectives. The report provides key stakeholders and shareholders with credible information about project performance. It looks at project accountability and the lessons learned – that is, what worked and what didn’t during project implementation.  Impact evaluations and cost-benefit and cost-effectiveness analyzes are tools used in this part of the process.


During  the post-evaluation phase we have the Development Effectiveness Overview or DEO. The DEO is the IDB’s annual flagship report. Together with the Corporate Results Framework, it showcases the IDB’s contribution to the strategic priorities set by the Bank’s Institutional Strategy. In addition, the DEO highlights lessons learned from projects, and how the Bank is performing against its strategic priorities and targets.