Basic Impact Assessment at Project Level
This paper examines the underlying principles and basic methods of assessing the impact of development projects. It is a short "Core Text" on impact assessment.
The paper begins with outlining the principles of impact assessment and how these relate to Enterprise Development interventions. It then goes on to develop a framework for assessment at project level, and the practical application of this framework. This is followed by issues to be considered when commissioning and conducting an impact assessment, including items that should be included in drawing up Terms of Reference for engagement of external consultants. Finally the paper looks in more detail at the main methods of assessing impact, advantages and disadvantages of these, and the kinds of situation to which each is most suited.
For each impact assessment type a wide range of methodologies has been developed, according to the precise purpose of the assessment, the types of question to be asked, the organizational context, the socio-economic context, available budget, research capacity and other factors. An impact assessment may include any or all of:
- Quantitative Statistical Models;
- Qualitative Methods;
- Participatory Approaches.
Impact assessment for enterprise development (ED) has three different, but interrelated, objectives They are intended for accountability, improving program/project effectiveness, and for policy development. Impact assessments carried out as part of planning and approval of an intervention (ex ante) are predictive in nature, and generally follow well-established methodologies (e.g. for environmental impact assessment, social impact assessment, health impact assessment, economic appraisal). Assessments carried out subsequently (ex post) aim to evaluate actual impacts. While techniques vary according to the nature of the intervention and the purpose of the assessment, the basic methodology is similar. An assessment must focus on:
- Scope, targets, indicators, unplanned impacts, stakeholder identification;
- Stakeholder involvement, assessment of impacts, quantification of impacts;
- Corrective action, policy learning, reporting, dissemination of findings.
The key task for the IA designer is to select an approach that can meet the objectives of the specific assessment at an acceptable level of rigor, that is compatible with the programme's context, feasible in terms of costs, timing and human resource availability and an IA must avoid certain methodological pitfalls. Wherever possible an IA methodology should be piloted before full implementation.
