Independent Evaluation Group2012-03-192012-03-192010978-0-8213-8578-4https://hdl.handle.net/10986/2561This report has been prepared in the context of a major global effort in the past eight years to better measure results in development assistance. The agenda for this effort was articulated and refined in a series of international conferences, beginning with the international conference on financing for development in Monterrey in 2002 and continuing through the Accra agenda for action in 2008. Cost-benefit analysis entails measuring results, valuing results, and comparing results with costs, and hence is highly relevant to the results agenda. Cost-benefit analysis can provide a comprehensive picture of the net impact of projects and help direct funds to where their development effectiveness is highest. This study draws two broad conclusions. First, the bank needs to revisit its policy for cost-benefit analysis in a way that recognizes the legitimate difficulties in quantifying benefits while preserving a high degree of rigor in justifying projects. Second, the bank needs to ensure that cost-benefit analysis is done with quality, rigor, and objectivity: 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.CC BY 3.0 IGOACCOUNTABILITYACCOUNTINGACCOUNTING PRINCIPLESACCOUNTING STANDARDSBENEFICIARIESBENEFIT ANALYSISBENEFIT STREAMSCAPACITY BUILDINGCOMMUNITIESCOST-BENEFIT ANALYSESCOST-BENEFIT ANALYSISCOUNTERFACTUALDECISION MAKINGDRIVINGECONOMIC ANALYSISECONOMIC CONDITIONSECONOMIC GROWTHECONOMIC IMPACTECONOMIC REFORMECONOMICSECONOMISTSEDUCATIONAL ATTAINMENTEFFECTIVE USEEMERGENCY RESPONSEEMPIRICAL BASISEMPIRICAL EVIDENCEEMPLOYMENTENVIRONMENTALENVIRONMENTAL COSTSENVIRONMENTAL EXTERNALITIESENVIRONMENTAL IMPACTSEX ANTE ANALYSISEXPENDITURESEXTERNALITIESFINANCIAL COVENANTSFINANCIAL INSTITUTIONSFISHERIESFORECASTS OF TRAFFIC GROWTHHIGHWAYHOUSEHOLD INCOMEHOUSEHOLD SURVEYSICRIDEAL INDICATORSIMPACT EVALUATIONINCOMEINTEREST RATESINTERVENTIONINTERVENTIONSLEARNINGMANDATESMARKET PRICESPOLICY CHANGESPOSITIVE EXTERNALITIESPOVERTY REDUCTIONPRESENT VALUEPRIVATE GOODSPRODUCTIVITYPROGRAMSPROJECT BENEFICIARIESPROJECT MONITORINGPROJECT OBJECTIVESPUBLIC GOODPUBLIC GOODSPUBLIC INVOLVEMENTRESOURCE MANAGEMENTROADROAD PROJECTSROADSRURAL DEVELOPMENTSELECTION BIASSETTLEMENTSHADOW PRICESSUBSIDIARYTECHNICAL ASSISTANCETRAFFICTRAFFIC DENSITYTRAFFIC GROWTHTRANSACTION COSTSTRANSPARENCYTRANSPORTTRANSPORT PROJECTSTRANSPORT SECTORTRUEURBAN DEVELOPMENTWAGESWEALTHWorld Bankhttps://doi.org/10.1596/978-0-8213-8578-4