This is the first Independent Office of Evaluation (IOE) research paper produced to improve the conceptual and methodological underpinnings of independent evaluation in IFAD. The purpose of the project was to research and test various efficiency measures, including Value for Money, in selected project evaluations and to propose suitable measures as input to the revised IFAD evaluation manual. The research paper also covers the concept of efficiency by other institutions such as the Organisation for Economic Cooperation and Development and the Department for International Development.