Development Effectiveness Matrix

WHY? The Development Effectiveness Matrix (DEM) is a corporate tool which aims to ensure project design favors good performance, accountability, and continuous learning.

HOW? The DEM checklist sets the basis for a quality review for loan proposals. The DEM assigns an evaluability score based on four areas and seven sections:

I. Corporate and Country Priorities

Section 1- Promotes project objectives to align to IDB Development Objectives

Section 2 – Promotes project objectives to align to Country Development Objectives

II. Development Outcomes – Evaluability

Section 3 – Encourages effectiveness by promoting an evidence-based assessment and solution

Section 4 – Encourages efficiency and safeguards resources by ensuring a proper ex ante economic analysis

Section 5 – Encourages effectiveness by ensuring a proper setup to monitor the project through the Project Monitoring Report (PMR). Encourages accountability and learning by promoting a proper set up to carry out the ex-post evaluation at exit or Project Completion Report (PCR)

III. Risk and Mitigation Monitoring Matrix

Section 6 – Encourages proper risk management

IV. IDB´s Role – Additionality

Section 7 – Encourages the identification of additional development benefits that will occur because of the Bank's involvement

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WHEN AND WHAT? The DEM is an instrument applied to a project design during the loan approval process as per the procedures for processing SG Operations:

At the Eligibility Review Meeting (ERM)

Based on the DEM applied to the project profile (PP), the team decides if the project will need further support achieving the evaluability standards

At the Quality and Risk Review Meeting (QRR)

The team receives a preliminary DEM score based on the Proposal for Operation Development (POD). The Board of Governors' of the Bank, requires that all loan proposals attain a minimum score of five (5), in the overall evaluability index and in each of its sections, for them to be considered for approval. If the project does not reach a minimum five point threshold in each section, then a specialist from SPD is assigned to work with the team to support the project in reaching the threshold

At the Operational Policy Committee (OPC)

The team receives a final DEM score to include in the Draft Loan Proposal

The DEM was approved in 2011 by the Board of Executive Directors (GN-2489-5)