Indicators for measuring progress toward the 21st Century targets
are now being worked out.
The DAC is developing new systems for
collecting statistics on donor flows according to key development
cooperation policy objectives.
In 1999 comprehensive data will
begin to be available for comparing over time the relationship
between aid flows and development progress.
USAID will press
other donors to focus assistance on key development challenges.
In bilateral contacts and in the multilateral DAC, USAID will
work to expand donor consensus on aid approaches that maximize
the impact of development cooperation on development targets.
USAID will seek consensus on poverty reduction strategies and key
approaches in other areas such as education.
Capacity to report results and allocate resources on the
basis of performance improved.
Over the course of the past several years, USAID has undertaken a
number of initiatives to enhance the effectiveness of its
These efforts have focused primarily on increasing the
Agency's capacity to assess results and to allocate resources
increasingly on the basis of performance.
Among those changes
already working effectively are:
(1) strategic planning at the
operating unit level, i.e., among field missions and Washington
offices managing program funds; (2) continuous surveillance of
performance by operating units; (3) annual comparisons of actual
to planned performance by operating units linked to budget
allocations through the Results Review and Resource Request (R4)
reports; (4) annual reviews of performance assessments and
resource requests from operating units by Washington bureaus and
the use of these reviews in the preparation of the Agency's
annual budget submission; and (5) evaluation and applied
Among those changes the Agency is working to improve
(1) sectoral reviews which look at the relative
effectiveness of the Agency's approaches in each of its goal
areas; (2) cross sectoral reviews which capture the effects of
program integration, e.g., the effects of employment or education
on fertility or crisis prevention; and (3) the New Management
System from which USAID expected too much too soon.
Each of these activities helps the Agency focus on the questions
of what works and why, or to explore alternate, more effective
The Agency has identified two proxy indicators to
measure its capacity to enhance program effectiveness.
indicators and the Agency's end FY 1999 management improvement
benchmarks are identified in the following table.
However, the
Agency's evaluation and applied research agendas merit fuller
discussion here because of their special contributions to
enhancing program effectiveness.

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