From Macroeconomic Correction to Public Sector Reform: The Critical Role of Evaluation

Many developing countries have discovered since the 1980s that public sector reform is the connection between macroeconomic correction and sustainable growth. This study aserts that once a country has achieved economic balance, institutional adjustment must be achieved before recovery and sustainable growth can be achieved. Technical asistance has been aimed at transferring skills, not building domestic capacity. Therefore, it has not been effective in influencing public sector reform. As a result, this paper proposes that the strengthening of evaluation capacity in developing countries will lead to efficiencies and will provide a powerful instrument for public sector reform and bring about higher public sector efficiency. In linking evaluation capacity with public sector reform, particular significance is given to the evaluation of national policies as well as evaluation of projects or programs.