Guidelines For Programme Design, Monitoring And Evaluation
Guidelines for Programme Design, Monitoring and EvaluationTable of contentsKEY TERMS1. BASIC PRINCIPLES1.1. Development cooperation as part of foreign policy 1.1.1 Increasing coordination and coherence1.1.2 Strategic planning sets the framework1.1.3 Cooperation has various forms1.1.4 Policies require action1.1.5 Finland as a partner1.2. Towards a common language 1.2.1 An integrated approach improves learning1.2.2 Project cycle - the life of a development intervention1.2.3 Level of participation varies1. 3. Achieving sustainable development 1.3.1 Policies must match1.3.2 Better value for money1.3.3 Institutional capacity makes a difference1.3.4 People-centered development emphasises socio-cultural aspects1.3.5 Participation enhances ownership1.3.6 Gender equality and participatory development1.3.7 Environment - not only ecology1.3.8 Technology must meet the needs2. PROJECT DESIGN2. Situation analysis - the cornerstone of project planning 2.1.1 Background studies and the analysis of stakeholders2.1.2 Problem analysis - key to the project’s framework2.1.3 Objectives reflect an ideal future2.1.4 Strategic choices begin by fixing the project purpose2.2. Planning with logic 2.2.1 Logical framework is a practical tool2.2.2 Intervention logic states the strategy2.2.3 Assumptions must hold2.2.4 Indicators make the plan concrete2.2.5 Approach describes how2.2.6 Organisation determines roles and responsibilities2.2.7 Budget details financial framework2.2.8 Various roles of the project document3. MONITORING 3.1. How stakeholders monitor
3.2. Integrated approach facilitates monitoring3.3. What is monitored and how3.3.1 Progress reports3.3.2 Annual Monitoring Reports3.3.3 Other performance monitoring3.3.4 Financial reports4. EVALUATION4.1. What evaluation is 4.1.1 Evaluation has two main purposes4.1.2 Different types of evaluations and other related assessments4.1.3 Integrated approach and the Logical Framework4.2. Issues to be evaluated 4.2.1 General evaluation issues and their relation to the logical framework4.2.2 Factors ensuring compatibility and sustainability4.3. How to plan and carry out an evaluation 4.3.1 Terms of Reference4.3.2 Planning of evaluation requires expertise4.3.3 Participation improves quality4.3.4 Demand for local evaluation capacity is increasing4.3.5 Evaluation report - the first step4.4. What to do with the evaluation report 4.4.1 Dissemination of conclusions and recommendations4.4.2 Approval and operationalisation of recommendationsANNEXES Annex I Integrated approach to project cycle managementAnnex II General format for terms of referenceAnnex III Project document formatAnnex IV Intervention profile/performance summary formAnnex V Example of project specific management/monitoring set-upAnnex VI Example of work plan formatAnnex VII Reporting, monitoring and evaluation issuesAnnex VIII Example of an expenditure follow-up table and related graphicsAnnex IX Evaluointikäsitteet ja looginen suunnittelukehikko (in Finnish)Annex X General format for terms of reference for evaluationsAnnex XI Programme Completion ReportAnnex XII Programme/Project Fact SheetComments and suggestions to:Ministry for Foreign AffairsDepartment for Development PolicyKatajanokanlaituri 3PL 176, 00161 Helsinki, FinlandE-mail: keo-11@formin.fi
KEY TERMSActivitiesAction taken or work performed within a project totransform means into results.AssumptionsImportant conditions for the success of the projectthat are not within its control, and which are wordedas positive conditions.BeneficiariesA limited group among the stakeholders, who willdirectly or indirectly benefit from the project.BlueprintplanningPlanning undertaken by expatriate or localofficials/technical experts alone, resulting in adetailed implementation plan.CollaborativeplanningPlanning based on the collaboration ofofficials/technical experts and the representativesof the key stakeholders.DevelopmentinterventionAll types of planned undertakings withdevelopmental objectives.IndicatorThe performance standard to be reached toachieve an objective.Integrated projectcyclemanagementMethod of managing the project cycle, using thelogical framework and the same sustainabilitycriteria throughout the cycle.Intervention logicStrategy for achieving the project purpose,consisting of results, activities and means, andcontributing to overall objectives.LogicalframeworkMethod for analysing and presenting the mostimportant elements of a project and theirinterrelationships.MeansHuman resources, materials and other inputsrequired to carry out planned activities and managethe project.Overall objectivesLong-term development goals to which the projectmakes a contribution.ParticipatoryplanningA way of planning where the initiative andleadership is taken by the beneficiaries, and inwhich external facilitators participate.PreconditionCondition that must be fulfilled before a project canstart up.ProjectIn these guidelines, different types of developmentinterventions, which are designed to achievecertain specific objectives within a given budgetand organization, and a specific period of time.Project cycleModel of the entire lifespan of a project.Project purposeThe reason for or focus of the project, describingthe improved situation which the project is expectedto achieve.ResultsProducts of the activities that together achieve the
project purpose. Not only physical outputs but astart to enjoyment of sustainable benefits.StakeholdersGroups of people, organisations and institutionswho have a direct or indirect interest, or a role, inthe project, or who affect or are affected by it.SustainabilityIn the context of a single project, the continuation ofits benefits and impact after the project itself hasended.
1. BASIC PRINCIPLES1.1. Development cooperation as part of foreign policyDevelopment cooperation is an important part of Finnish foreign policy andexternal relations. To meet various objectives, Finland uses different multilateraland bilateral channels. Whilst project assistance still holds the dominant positionin bilateral cooperation, both sectoral and program assistance are becoming moreimportant. These guidelines are meant primarily for design, monitoring andevaluation of projects, but the basic principles are applicable in all types ofcooperation.Reduction of poverty, protection of the environment, and promotion of equality,democracy and human rights are the principal goals of Finland’s developmentcooperation. They are an integral part of the planning, implementation, monitoringand evaluation of all development interventions.1.1.1 Increasing coordination and coherenceThe strategy of Finland s Development Cooperation in the 1990’s was endorsed by the Government andParliament in 1993. The justification and motives are stated as follows:"Enormous discrepancies in wealth and well-being between the developed and the developing countries are notacceptable by any human standards and constitute a threat to the prosperity and security of all nations. Throughits foreign and economic policies, Finland, together with other developed countries, is doing what it can to reduceand eliminate these discrepancies."As preconditions for cooperation, the strategy requires that Finland’s partner countries commit themselves to thereduction of poverty, to combat global threats to the environment and to promote social equality, democracy andhuman rights as essential elements of sustainable development.The Finnish Government’s 1996 Decision in Principle reconfirms these goals as the guidelines for Finland sdevelopment cooperation.External assistance cannot be a substitute for a partner country’s own national resources. At its best, externalassistance serves as a catalyst for development, to enhance conditions where governments, private sector,communities and individuals take the initiative and lead into their own hands.To strengthen coordination and coherence between development, trade and other policies, the FinnishGovernment aims for a comprehensive strategy for Finland’s relations with developing countries.Membership of the European Union brought new opportunities and challenges to Finnish developmentcooperation. This document, based on the project cycle management principles of the European Union, is animportant step in the coordination of Finnish development cooperation with the EU practice.1.1.2 Strategic planning sets the frameworkLong-term objectives of Finnish development cooperation are specified in the rolling five-year financial and actionplan. Annual budgets approved by Parliament give further guidance and confirm financial commitmentauthorisations for coming years.Country-specific objectives are elaborated in negotiations with partner countries. When setting priorities, Finlandemphasises the primary responsibility of the partner country.Identification of development projects is founded on different forms of communication between partner countries,and is based on mutual negotiations on different levels.
The Ministry for Foreign Affairs also prepares strategies for larger geographic areas. Sectoral and thematicguidelines set policies to that effect. Separate manuals deal with issues relevant to the sustainability.1.1.3 Cooperation has various formsThe different channels for development cooperation, such as multilateral organisations and development funds,bilateral cooperation (including non-governmental organisations), and humanitarian aid operations, servedifferent purposes and are employed in accordance with need.Bilateral development cooperation is channelled mainly through regional or sector programme support, or takesthe form of development programmes and projects.Programme assistance is support provided for vital development efforts at national level, such as structuraladjustment programmes. It includes both general and sector programme assistance.General programme assistance consists of all contributions made available to a partner country for generaldevelopment purposes. It includes balance of payment support, general budget support and support for importsof specific commodities. General programme assistance is not linked to specific sector programme nor projectactivities. Debt relief and food aid are normally included in this category.Sector programme assistance is targeted at a particular sector and often linked to specific policy conditions.Some bilateral donors view this type of assistance as a set of interlinked projects aimed at a specific sector. It isbased on a broad assessment of sector-specific needs.Recently, donor agencies have further elaborated the concept of a sector investment programme. The intention isto enhance the partner country’s ownership of programme activities and to strengthen its institutional capacity.Other key themes are the disbursement of funds through the partner country s own budget, and closer interagency coordination.Within Finnish development cooperation, the term ‘sectoral approach’ represents a practical solution to theproblem of translating political and economic dialogue into a long-term development programme. Dialoguebetween the partners determines the framework for cooperation on policy reform which will contribute to thedesired sectoral performance.Sectors can be defined in economic terms, such as agriculture, industry and energy, or in cross-institutional (i.e.thematic) terms such as environment, health, education, gender, employment or local government. Adopting asectoral approach is possible only in situations where the partner country has, or is, committed to develop anappropriate institutional framework and policies which promote the intended activities.In this context the institutional framework includes both organisations and the working environment in its broadestsense, i.e. including the "rules of the game". Organisations in society perform specific functions; a schooleducates children and a water authority provides safe drinking water and sanitation. This broad concept of theinstitutional framework includes laws, norms and values, as well as the structures which constrain the behaviourof individuals and groups. Employing a sectoral approach means working to strengthen local institutions andbuilding up their capacity. This process is much more fundamental than one which is related only toorganisations.Until now, professionals working in development cooperation have considered agriculture and rural development,catchment area re-forestation, water supply and sanitation, and hydropower energy development to constitutefour different sectors or separate programmes. Coherent planning and management of aid means that thesedifferent "sectors" can be looked at jointly, since it may well be that they use and protect the same water sources.In this particular case, a wider approach provides the incentive for broader programming, analysis and theestablishment of priorities for the whole of the water resources sector.Once a broad national and regional analysis has been carried out, a framework for project type assistance can becreated. This, in turn, makes it possible for the purpose and role of each project to be bound more tightly to thegeneral policy framework for the sector in question.Project assistance aims at achieving specific development objectives within a given budget and time. Projectassistance normally includes financial, technical and material support.
Whilst project assistance continues to be the dominant form of Finnish development cooperation, programme andsectoral assistance are of increasing importance. The Ministry for Foreign Affairs is making efforts to furtherstrengthen the role of programme and sectoral assistance.These guidelines use the term project to refer to all the foregoing types of development interventions. Theplanning, monitoring and evaluation methods described in this document are applicable to all the different typesof intervention.From projects towards sector assistanceSince 1980 Finland has given project assistance to agricultural and rural development in Luapula province inZambia. From mid-1997 onwards the Luapula Livelihood and Food Security Program (LLFSP) is financedthrough the local Agricultural Sector Investment Program (ASIP). In the new concept, the Finnish funds aredivided so that the development funds are paid to the ASIP account of the Ministry of Agriculture in Zambia andthe technical assistance funds directly to the consultant in Finland. The funds remitted through ASIP areearmarked for LLFSP and conditions for their release include that Zambia pays her financing share of the LLFSPto ASIP first. Finland also reserves the right to employ an international auditing company to audit her financialinput to the ASIP.1.1.4 Policies require actionReduction of poverty, protection of the environment and the promotion of social equality, democracy and humanrights are the principal objectives and preconditions in Finland s development cooperation policy. These aimsmust be advanced and taken into account throughout the lifespan of each intervention, from identification throughplanning, implementation and monitoring to final evaluation.1. Poverty reductionSustainable economic growth, its fair and equitable distribution and translation into broad-based socialdevelopment constitutes one part of Finnish poverty reduction policy. It emphasises stable and conduciveeconomic policies and development of human resources which are both one pre-requisite and the outcome ofeconomic growth. Empowerment of the poor, through improving their access to productive assets like land,water, financing and other services, is another important part.Poor people of both sexes must have the opportunity to participate in the decisions that affect their lives. It helpsto focus on these root causes of poverty that poor people themselves consider to be most relevant.The analysis of a project’s impact on poverty must be based on systematic assessments which themselves arebased on reliable indicators and which are conducted on a regular basis. Existing poverty assessments andprofiles are complemented, when necessary, by additional studies.2. Protection of the environmentAssessing environmental impacts together with the various parties involved, and the resolution of possibledisputes, are important aspects in both the strategic planning of development cooperation and in projectpreparation, implementation and evaluation.As part of, or in addition to, projects with direct environment-related objectives, environmental protection isenhanced by strengthening a partner country’s institutional capacity and by assisting in the fulfilment of acountry’s international environmental obligations.The assessment of environmental impacts in Finnish bilateral development cooperation projects is discussed ingreater detail in Chapter 1.3.7 of this document - "Environment - not only ecology".3. Human rights, equality and democracyHuman rights are indivisible, universal and interlinked. They form the basis for broad-based, stable andpredictable development. Finland does not accept cultural relativism if it means violation of human rights.
Equality, both between different social groups and between the sexes, is an integral part of human rights andmust be promoted in all Finnish development cooperation. There is a special emphasis on the status of peoplesuffering from disabilities.Democracy is a prerequisite for broad-based participation in society and promotes ownership of developmentcooperation activities. It leads to a more stable, fair and equal society.The promotion of human rights, equality and democracy are cross-cutting objectives that must be consideredwhen assessing all development interventions. They are objectives which are directly promoted by specificactions such as support to electoral processes, other democratic institutions , good governance and rule of law,free press and non-governmental organisations.Finland is active in seeking new forms of cooperation which support human rights, equality and democracy andencourages an open dialogue with partner countries, international organisations and NGOs.Developing with disabilitiesUN estimates indicate that there are as many as 300 million persons with disabilities in developing countries. Inother words, of the 1.6 billion poor people, every sixth is estimated to suffer from a disability. To achieve effectivereductions in levels of poverty, this large group of people must be given special consideration.The UN Standard rules on Equalisation of Opportunities for Persons with Disabilities challenge UN memberstates to establish, by law, the rights of persons with disabilities, including accession to health services, educationand social services, as well as the right to equal participation in society.The needs and concerns of persons with disabilities must be included as an integral component in developmentcooperation projects. The first step is to put the rights of persons with disabilities on the agenda when negotiatingwith the cooperation partners on joint development plans.The inclusion of disability dimension is most urgent in the social, health, education and employment sectors. It isoften necessary to plan for a specific disability component within a project to assure the inclusion. A healthproject, for example, could have a component focusing on rehabilitation and technical aids for people withdisabilities.Earmarking of financial resources can be used to enhance levels of participation by disabled people. An agreedproportion of an educational programme budget could, for example, be used for training teachers and parents indisability issues.When considering construction and renovation projects, disabled people’s accessibility and mobility requirementscan be integrated into the planning of technical works.People with disabilities are the best experts on their own needs. Disabled people should be listened to directly,either through their own organi
Membership of the European Union brought new opportunities and challenges to Finnish development cooperation. This document, based on the project cycle management principles of the European Union, is an important step in the coordination of Finnish development cooperation with the EU practice. 1.1.2 Strategic planning sets the framework
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