Institutional Learning and Change Initiative

The following text is drawn from Guijt and Woodhill (2002).

Cost-Benefit Analysis (CBA)

The purpose of this method is to provide a format (also known as an accounting framework) to enumerate the range of benefits and costs surrounding a decision in order to help weed out costly activities that yield few benefits. From an M&E perspective, a standard use of this method is to evaluate a project by comparing actual final measurements of the costs and benefits against those proposed in the design of the project. Sometimes comparisons can be made with other projects that are delivering similar services and products. Another use is to assess costs and benefits of elements of a project, such as specific activities or indicators.

Source: Guijt, I. and J. Woodhill (2002). Managing for Impact in Rural Development : A guide for project M & E. Rome, Italy: International Fund for Agricultural Development http://www.ifad.org/evaluation/guide/index.htm