This report sets out an approach for measuring the impact of financial sector deepening (FSD) programmes. The note has been primarily prepared for the benefit of FSD programme directors and members of FSD programme governing bodies/investment committees, but the core messages may also be of interest to others engaged in market development programmes, particularly in the financial sector.
The approach set out in this note is referred to as an impact-oriented measurement (IOM) framework. The objectives of IOM are two-fold:
- to help assess how FSD investments of time, money and influence have contributed to observed changes in the financial sector, and how this has contributed to improved livelihoods of the poor; and
- to improve the performance of FSD contributions, through improving their evidence base on what works and what does not.
The context for this work is the increasing emphasis on transparency, accountability and value for money in relation to donor funded programmes.