Knowledge

IFAD has to report to its Members States on the total number of rural people lifted out of poverty1. The government programmes it funds, however, are implemented in complex ways and environments that challenge mainstream evaluation practice. The challenge for IFAD and its co- implementing and co-funding partners, moreover, is not just to rigorously assess impact but also to understand the processes generating impact in order to realize its ambitious targets (IFAD, 2011). Albeit a strong emphasis on quantitative measurement, there is a need for impact evaluation that fosters learning and responsibility.

The step-by-step approach to VC analysis and project design follows the basic IFAD project design cycle.Each step is briefly described and followed by guiding questions for the project design team. The VC approach should be adopted early in the project cycle, such as when developing project concept notes for a country strategic opportunities programme (COSOP).