How to Assess the Effectiveness of Development Aid Projects: Evaluation Ratings versus Project Indicators

Abstract

Most studies on project-based aid effectiveness rely on subjective evaluation ratings to measure projects' performance. Using the example of drinking water projects, this study compares evaluation ratings to objective, quantitative project indicators based on water supply to better understand the drivers of evaluation ratings. We find that evaluation ratings are only weakly correlated with improvements in water supply. Whereas the water supply-based project indicators are best explained by project design variables, evaluation ratings put more weight on project management and implementation.