Systems of monitoring and evaluation of the financial development institution’s projects: an analytical review

Serhii N. Ivanov, Kateryna V. Klymenko, Maksym V. Savostianenko

Abstract


In modern conditions, one of the most important issues in cooperation’ development with International financial institutions is an increasing the effectiveness of joint projects and programs. An urgent problem is the development and improvement of national norms and rules and their harmonization with European and world approaches (taking into account the chosen development vector) to prevent or reduce risks in the process of preparing, implementing, monitoring, managing and evaluating the effectiveness of such projects and programs.

The paper explores approaches to monitoring and evaluating the effectiveness of financial development institutions’ projects, which actively contribute to the advance of society, including the achievement of Sustainable Development Goals, which were approved at the 2015 UN Summit. A critical analysis of the existing methodological and theoretical approaches proved the absence of a unified methodology for multi-criteria evaluation of the effectiveness of projects, implemented with the participation of financial development institutions.

In particular, the authors focused attention and examined the following international methodologies, used in monitoring and evaluating the effectiveness of financial development institutions’ projects, namely: the Corporate-Policy Project Rating (CPR); Development Effectiveness Rating (DERa); the Dutch Impact Model Methodology (IMM), Success Criteria Model, Development Impact Model (DIM), the International Finance Corporation's valuation systems: Development Outcome Tracking System (DOTS) and The Anticipated Impact Measurement and Monitoring System (AIMM).

It is noted, that approaches to monitoring and evaluating the financial development institutions’ participation in projects, devoted to improve the effectiveness of the countries’ economies, in which investments are directed, should take into account the implementation of the following four components: 1) governance, 2) development impact, 3) effectiveness and 4) financial additionality.

It was emphasized that regarding further cooperation of Ukraine with financial development institutions on the issues of development and improvement of its efficiency, there should be found or developed an approach, which would take into consideration the accumulated experience and various aspects, related to the project effectiveness: both from the financial side and the achievement of certain social, quantitative, qualitative and other parameters and indicators, reflecting the degree of achievement of particular Sustainable Development Goals.


Keywords


international financial cooperation, financial development institutions, the effectiveness and efficiency of the projects’ implementation, the Sustainable Development Goals, a comprehensive evaluation of projects, project monitoring, governance, developme

Full Text:

PDF

References


Belorus, O.G., Matseiko, Y.M., & Viter, I.I. (2009). EU Global Strategies. Head of the authoring team and scientific editing - AG Belorus. State Higher Educational Institution "Kyiv National Economic University named after V. Hetman", Institute of World Economy and International Relations of NAS of Ukraine, International Institute of Global Studies, Kyiv [in Ukrainian].

Vishnevsky, V.P., & Knyazev, S.I. (2017). The Smart Industry: Perspectives and Challenges. Economy of Ukraine, 7, pp. 22-37. [in Ukrainian].

Gazuda, L.M., & Rubish, M.A. (2015). Realization of joint projects of cross-border cooperation. Publishing office Sabov. Uzhhorod [in Ukrainian].

Galchinsky, A.S., Geyets, V.M. & Babenko, S.G., etc. (2004). Strategy for Economic and Social Development of Ukraine (2004 - 2015) “Towards European Integration”, Kyiv [in Ukrainian].

Ivanov, S.M., Savostyanenko, M.V., & Klymenko, K.V. (2019). Topical Issues of Activity of Financial Institutions of Development: General Assessment and Ukrainian Practice. Research Papers of Research Financial Institute. Scientific collection, 2 (87), pp. 76-94 [in Ukrainian].

Kvasha, O.S. (2016). Trends in cooperation between Ukraine and international financial institutions: current status and prospects for expansion. Scientific Bulletin of Uzhgorod National University. Series: International Economic Relations and the World Economy, 7 (1), pp. 57-162 [in Ukrainian].

Kvasha, O.S., & Tsiganov, S.A. (2014). Ukraine's cooperation with international financial institutions - analysis and prospects for cooperation. Scientific Bulletin of the Mykolayiv National University named after V.O. Sukhomlinsky. Economic sciences, 5.3 (112), pp. 65-71 [in Ukrainian].

Mikula, N. (2004). Inter-territorial and cross-border cooperation: a monograph, Lviv. IRD NAS of Ukraine [in Ukrainian].

Ministry of Finance of Ukraine (2017). Plan of Measures for Implementation of the Strategy for Reforming the Public Financial Management System for 2017-2020. Order of the Cabinet of Ministers of Ukraine on May 24, 2017 no. 415-р. Ministry of Finance of Ukraine. Retrieved from https://minfin.gov.ua/news/view/kabmin-ukhvalyv-stratehiiu-upravlinnia-derzhavnymy-finansamy-na--roky?category=bjudzhet [in Ukrainian].

Ministry of Finance of Ukraine (2018a). Strategic Plan of Activity of the Ministry of Finance of Ukraine. Ministry of Finance of Ukraine. Retrieved from https://mof.gov.ua/en/strategichnij-plan-dialnosti-minfinu [in Ukrainian].

Ministry of Finance of Ukraine (2018b). The concept of improving the efficiency of implementing joint projects with IFIs. Ministry of Finance of Ukraine. Retrieved from https://mof.gov.ua/en/news/kabinet-ministriv-skhvalyv-kontseptsiiu-pidvyshchennia-efektyvnosti-vprovadzhennia-spilnykh-z-mfo-proektiv [in Ukrainian].

Naumenkova, S., & Ovsyannikova, Ya. (2013). Features of evaluating the effectiveness of public-private partnership projects: foreign experience and Ukrainian practice. Visnyk Kyivskoho natsionalnoho universytetu ime ni Tarasa Shevchenka. Ekonomika, 134, pp. 47-51 [in Ukrainian].

Proskura, V.F., & Fozekosh, M.L. (2018). Challenges and prospects for cross-border cooperation at local level. Mukachevo State University. Economy and society. Electronic scientific professional publication, 14, pp. 139-146. [in Ukrainian].

Skorobogatova, N.E. & Baleva, N.M. (2017). Effectiveness of financial cooperation at the international level. Collection of scientific works of young scientists of the Faculty of Management and Marketing of the Sikorsky I. Polytechnic Institute of Ukraine "Actual problems of economy and management", 11. Retrieved from http://ape.fmm.kpi.ua/article/view/102604/97680 [in Ukrainian].

Smoglo, O.V. (2018). Status and prospects of development of cooperation between Ukraine and international institutions. Mukachevo State University. Economy and society. Electronic scientific professional publication, 14, pp. 856-861 [in Ukrainian].

Tereshhenko, H. M., Kaplenko, O. І., & Severіna, Kh. І. (2017). Problems and prospects of attracting financial resources of IFIs . Scientific works of the «Research Financial Institute», 3, pp. 111-119 [in Ukrainian].

Tretyak, V.P. (2013). Comprehensive evaluation of the effectiveness of the investment project for the development of the social infrastructure of the railway transport organization, taking into account its impact on the socio-economic development of the region. Problems and prospects of entrepreneurship development, 2, pp. 107-112 [in Ukrainian].

State portal (2019). The Ministry of Finance has opened another public finance database. Government Portal. State portal. Retrieved from https://www.kmu.gov.ua/en/news/ministerstvo-finansiv-vidkrilo-shche-odnu-bazu-danih-v-sferi-publichnih-finansiv [in Ukrainian].

Shatkovskaya, A.O. (2006). Relations between Ukraine and international financial organizations: Abstract of the dissertation of the candidate of economic sciences: specialty 08.04.01. Nat. Acad. state. tax. services of Ukraine, Irpin, 19 p. [in Ukrainian].

Shkola, I.M., & Korop, B.M. (2010) Methodical approaches to assessing the effectiveness of cross-border cooperation. Economics (private higher education institution "University of Bukovina"), 6, 199-208. Retrieved from http://zbirnuk.bukuniver.edu.ua/issue_articles/17_1.pdf [in Ukrainian].

Campbell Thomson, C. & Goodwin, J. (2005, March) Evaluation of PPP projects financed by the EIB. Evaluation Report., EIB. Retrieved from https://www.eib.org/attachments/ev/ev_ppp_en.pdf

CAO (2012). CAO Audit of a Sample of IFC Investments in Third-Party Financial Intermediaries. Washington. CAO. Retrieved from http://www.cao-ombudsman.org/newsroom/archive/documents/Audit_Report_C-I-R9-Y10-135.pdf

Corporate-Policy Project Rating (GPR). (2013). KfW DEG. Retrieved from https://docplayer.net/18419410-Corporate-policy-project-rating-gpr.html

DANIDA (2017). Strategy document. The Ministry of Foreign Affairs’ Strategy for The Investment Fund for Developing Countries 2017-2021. Ministry of Foreign Affairs of Denmark.

Development Effectiveness Rating (DERa). (2018). KfW. DEG. Retrieved from https://www.deginvest.de/DEG-Documents-in-English/About-us/What-is-our-impact/Policy-brief_EN_final.pdf

Edwards S. (2017, October 11). IFC’s new way to measure development impact: 'An art as much as a science'. Devex. Retrieved from https://www.devex.com/news/ifc-s-new-way-to-measure-development-impact-an-art-as-much-as-a-science-91258

Eurodad (2015). Monitoring and evaluation at Development Finance Institutions. A Eurodad briefing paper, June. Eurodad. Retrieved from https://eurodad.org/files/pdf/5593a351e4e76.pdf

European Union (2014, December). Guide to Cost-benefit Analysis of Investment Projects. Economic appraisal tool for Cohesion Policy 2014-2020. Regional and Urban Policy. European Union. Retrieved from https://ec.europa.eu/inea/sites/inea/files/cba_guide_cohesion_policy.pdf

FMO (2014). Annual Report and Accounts. FMO. Retrieved from https://reporting.fmo.nl/FbContent.ashx/pub_1000/downloads/v181120143954/FMO%20Annual%20Report%20and%20Accounts%202014.pdf

FMO (2019, March). Impact model Methodology. The Hague. FMO. Retrieved from https://www.fmo.nl/l/library/download/urn:uuid:d85800f8-607a-4118-bb7a-059392b8c869/fmo+impact+model+%26+methodology.pdf (last accessed: 12.01.2019).

Global Transparency Initiative (2006). Transparency Charter for International Finan-cial Institutions: Claiming our Right to Know. Cape Town. GTI. Retrieved from http://www.ifitransparency.org/doc/charter_en.pdf

HIPSO (2019a). Indicators. HIPSO. Retrieved from https://indicators.ifipartnership.оrg/indicators/

HIPSO (2019b). Background. Why Harmonized Indicators are Important. HIPSO. Retrieved from https://indicators.ifipartnership.org/background-2/

IEG (2011). Assessing IFC’s Poverty Focus and Results. Washington. The Independent Evaluation Group. Retrieved from http://ieg.worldbankgroup.org/sites/default/files/Data/reports/ifc_poverty_full_eval.pdf

IESE. Business School, University of Navarra (2018, April). Draft proposal for an evaluation methodology for ‘people-first’ public-private partnerships. Specialist Centre on PPP in Smart & Sustainable Sities. UNECE. Retrieved from https://www.unece.org/fileadmin/DAM/ceci/documents/2018/PPP/Forum/Documents/Draft_Proposal_for_Evaluation_Methodology_for_People_First_PPPs.pdf

IFC (2013, January). IFC Jobs Study. Assessing Private Sector Contributions to Job Creation and Poverty Reduction. The World Bank. Retrieved from http://documents.worldbank.org/curated/en/157191468326714061/pdf/835080WP0IFC0J00Box382079B00PUBLIC0.pdf

IFC (2018). How IFC Measures the Development Impact of its Interventions. Retrieved from https://www.ifc.org/wps/wcm/connect/af1377f3-4792-4bb0-ba83-a0664dda0e55/201806_IFC-AIMM-Brochure.pdf?MOD=AJPERES&CVID=mfbcmgf

IFC (2019). DOTS Indicator Framework. IFC. Retrieved from http://documents.worldbank.org/curated/en/287171468326410253/pdf/835210WP0IFC0D00Box382079B00PUBLIC0.pdf

Ismail, K., Takim, R., Nawawi, A. H. & Egbu, C. (2010) Public Sector Comparator (PSC): A Value for Money (VFM) Assessment Instrument for Public Private Partnership (PPP). Retrieved from http://www.irbnet.de/daten/iconda/CIB_DC24084.pdf

Lemma, A. F. (2015, February). Development Impact of DFIs. What are their impacts and how are they measured? Overseas Development Institute. Retrieved from https://assets.publishing.service.gov.uk/media/57a08992e5274a27b200014f/Development-Impact-of-DFIs.pdf

Memorandum (2013, October 12). Memorandum regarding IFIs Harmonized Development Results Indicators for Private Sector Investment Operations among the following International Financial Institutions. Retrieved from https://indicators.ifipartnership.org/wp-content/uploads/2014/06/harmonization_mou_14pg.pdf

OECD (2010). Guidance for the 2011 Survey on Monitoring the Paris Declaration. OECD Publishing. Retrieved from http://www.oecd.org/officialdocuments/publicdisplaydocumentpdf/?cote=DCD/DAC/EFF%282010%2910&docLanguage=En

OECD (2011). Busan Partnership for Effective Development Co-operation. Fourth High Level Forum on Aid Effectiveness, Busan, Republic of Korea. (29 November – 1 December 2011). OECD. Retrieved from https://www.oecd.org/dac/effectiveness/49650173.pdf

OECD (2015). An Alternative/Expanded Institutional Approach for ODA Eligibility of Private Sector Instruments. OECD Publishing. Retrieved from http://www.oecd.org/officialdocuments/publicdisplaydocumentpdf/?cote=DCD/DAC/STAT/RD%282015%293/RD5&docLanguage=En

Romero, M. (2014). A Private Affair. Eurodad. Retrieved from http://www.eurodad.org/files/pdf/53be474b0aefa.pdf

The United Nation Human Rights Committee (2019). The United Nation Human Rights Committee. Retrieved from https://www.ohchr.org/en/hrbodies/ccpr/pages/ccprindex.aspx

UNIDO (2019). What is the four-eyes prin-ciple? UNIDO. Retrieved from https://www.unido.org/overview/member-states/change-management/faq/what-four-eyes-principle

United Nations (2011). Guiding Principles on Business and Human Rights. New York and Geneva. United Nations. Retrieved from http://www.ohchr.org/Documents/Publications/GuidingPrinciplesBusinessHR_EN.pdf

World Bank (2012). World Development Report 2013 Overview: Jobs. Washington, DC: World Bank. License: Creative Commons Attribution CC BY 3.0.




DOI: https://doi.org/10.15407/econindustry2020.01.075

Refbacks

  • There are currently no refbacks.