Box 3.4
Integrated Approach to Microfinance in Afghanistan
IEG recognized IFC’s work on microfinance in Afghanistan as transformational in its Country Program Evaluation; an integrated Investment Services/Advisory Services approach was instrumental in achieving results. In 2003, IFC invested in the first commercial bank under the new banking laws—the First Microfinance Bank of Afghanistan. That bank was also the pioneer commercial microfinance institution; at that time, microfinance was dominated by donors and nongovernmental organizations. The initial IFC investment was accompanied by a comprehensive Advisory Services project to build institutional capacity. A study of housing microfinance led to a new product by the bank that received technical assistance from Advisory Services. Another Advisory Services initiative helped the First Microfinance Bank of Afghanistan develop a strategy of outreach to female entrepreneurs, with positive results. The bank helped sustain microfinance lending during the financial crisis. In 2011, the First Microfinance Bank of Afghanistan accounted for almost half of the microfinance disbursements. Source: IEG 2012.
for development outcomes, though these are not disaggregated according to strategic priorities or pillars. There is growing use of reach indicators, aggregated from the project-level results, to measure progress. Hence there is standardized measurement at project and strategy levels, although there are strategic priorities that do not have overarching reach or outcome indicators, such as competitive markets and competitiveness. Table 3.3 shows the regional priorities and reach indicators. The relation of Investment and Advisory Services projects to strategic themes has been an important indicator. The shares of IDA countries, fragile and conflictaffected states, frontier regions in middle-income countries, and the base of the
Reach or Outcome Indicators in Regional Strategies
Table 3.3 Strategic pillar or focus
Reach or outcome indicators
Inclusive growth
People reached
Investment climate
Doing Business ranking and number of reforms
Competitiveness
(No single indicator to measure competitiveness )a
Global/Regional integration
South-South investment
Climate change
CO2 emission avoided
MSME
Clients reached
Infrastructure
People reached
Agribusiness
Farmers reached
Source: IFC. Note: MSME = micro, small, and medium-size enterprise. a For competitiveness, indicators are specified based on country or regional contexts and IFC’s focus. For example, energy efficiency, food safety, and corporate governance indicators were used to measure outcomes in the area of competitiveness in the Europe and Central Asia Region.
Use and Influence of Monitoring and Evaluation in IFC and MIGA
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