Technical guide for analyzing the efficiency of credit granting non-governmental organizations (NGOs)

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This book distills essential lessons from extensive consulting and evaluation work, guiding readers on how to assess the activities of NGOs. It serves as a practical tool, offering insights into the workings of these institutions, which have successfully attracted development cooperation funds since the mid-1980s. NGOs present themselves as competent alternatives to bureaucratic government-run development banks, leveraging their private-sector status to appear more dynamic. However, like public-sector institutions, they lack a defined owner and the profit motive, which can hinder operational efficiency. Profitability is not their decision-making standard, raising concerns about their long-term viability. The guide aims to provide donors with a methodology for evaluating and monitoring the efficiency of credit-granting NGOs. It highlights the responsibility of donors to support these institutionally fragile partners, often used to disburse funds without addressing their organizational challenges and deficiencies in financial technology. The book underscores the importance of considering these issues to ensure the sustainable impact of development efforts.