Cost-Benefit Analysis in World Bank Projects
Cost-benefit analysis used to be one of the World Bank's signature issues. It helped establish its reputation as the knowledge Bank and served to demonstrate its commitment to measuring results and ensuring accountability to taxpayers. It was...
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| Language: | English |
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Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2010/06/12850060/cost-benefit-analysis-world-bank-projects http://hdl.handle.net/10986/10481 |
| Summary: | Cost-benefit analysis used to be one of
the World Bank's signature issues. It helped establish
its reputation as the knowledge Bank and served to
demonstrate its commitment to measuring results and ensuring
accountability to taxpayers. It was the Bank's answer
to the results agenda long before that term became popular.
This report takes stock of what has happened to cost-benefit
analysis at the Bank, based on analysis of four decades of
project data, project appraisal and completion reports from
recent fiscal years, and interviews with current Bank staff.
This study draws two broad conclusions. First, the Bank
needs to revisit the policy for cost-benefit analysis in a
way that recognizes legitimate difficulties in quantifying
benefits while preserving a high degree of rigor in
justifying projects. Second, it needs to ensure that when
cost-benefit analysis is done it is done with quality,
rigor, and objectivity, as poor data and analysis misinform,
and do not improve results. Reforms are required to project
appraisal procedures to ensure objectivity, improve both the
analysis and the use of evidence at appraisal, and ensure
effective use of cost-benefit analysis in decision-making. |
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