Evaluation Matters Third Quarter 2016 - Value for Money in Development

Date: 23/12/2016
Type: Evaluation Matters Magazine

The concept of value for money (VfM) in development work is the subject of much debate and confusion. In VfM analysis by development agencies, four key terms known as the 4 Es are often used. These are Economy – minimizing costs; Efficiency – getting more results for the costs; Effectiveness – successfully achieving the intended outcomes; and Equity – reaching different groups. How are these terms interpreted and applied by development practitioners? Are we getting value for money in development work – and that includes evaluation of development work? How important, if at all, is the growing focus on value for money in the current public and development context?