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Background: Since the adoption of the Millennium Development Goals (MDGs), or more specifically perhaps the Monterrey Consensus, there has been a distinct shift in the conversation around assessing the development effectiveness of international aid programs. Initially, the focus had been on establishing monitoring and evaluation systems that served the needs to bilateral and multilateral donors to demonstrate the effectiveness of their assistance vis-à-vis their own constituencies. Today, there is an increasing recognition that recipient countries should be equally concerned with the effectiveness of donor resources as they are with the use of national resources devoted to development programs.
Purpose: This article reveals the current efforts of the sovereign new and traditional donors in establishing and operationalizing the international development assistance (IDA) monitoring and evaluation (M&E) systems to raise the efficiency of IDA programs.
Research Design: A review of previous studies and international practicies of IDA M&E.
Data Collection and Analysis: Employing game theory the authors identify the choice of particular IDA M&E system by traditional and new donors and analyze key elements and factors affecting M&E systems operationalization. They elaborate a set of policy recommendations on how to use M&E systems both in donor and recipient countries to raise aid effectiveness.
Findings: The authors conclude that in spite of donor and recipient countries having different purposes and approaches in implementing IDA projects, the use of the M&E is usually helpful to bridge their interests and to increase aid effectiveness.
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