Global Results: Analysis and Lessons

This report summarizes the findings and recommendations of 17 "Peer Reviews" and three field visits to Uganda, India and Mali.

The report states that:

• In 2002, the Consultative Group to Assist the Poor (CGAP) launched an aid effectiveness initiative using microfinance as a test case: “Microfinance Donor Peer Reviews”;
• 7 development assistance agencies participated in the reviews;
• The reviews focused on donor agencies’ own procedures, practices, processes and systems;
• The reviews:
  • Involved over 900 donor staff from 21 agencies as reviewers, hosts and/or interviewees, offering opportunities for mutual learning and exchange,
  • Identified success factors and constraints to good microfinance practice, and offered concrete recommendations for change.

The Peer Reviews revealed the following trends in development assistance that affect aid effectiveness and have implications for donor support of microfinance:

• The increasing use of new aid modalities;
• Moving “upstream”;
• A shift toward generalist staff among donor agencies;
• Decentralization of operations.

The following five core elements of effectiveness emerged from these Peer Reviews.

• Strategic clarity;
• Strong staff capacity;
• Accountability for results;
• Relevant knowledge management;
• Appropriate instruments.

The report concludes that for the Peer Review experience to translate into better development impact donors will need to:

• Build on management’s commitment to change;
• Identify their comparative advantage in promoting financial services for the poor and act accordingly;
• Collaborate in ways that leverage each others’ strengths, and jointly tackle common challenges.