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under way to increase the development effectiveness of our operations, enhance country focus and client orientation, and increase participation by beneficiaries in project design and implementation. These changes will help us to get better results on the ground—which is what really matters. A second set of issues relates to the World Bank’s cost-effectiveness. I am committed to ensuring that the Bank becomes a more agile, more responsive, and leaner institution. Actions have begun to be taken to bring that about. For example, we are on a zero-growth budget this year

International Monetary Fund

better investment climate, and improvements in governance. A better investment climate is key to attaining higher growth and employment creation, while, as noted in last year’s GMR, governance is an ongoing part of MDG monitoring, because it is an important factor underpinning a country’s development effectiveness and progress toward the MDGs. While higher economic growth is generally desirable, one should also be aware of its environmental costs. Although the recent boom in commodity prices has helped to underpin strong growth in many of the most natural resource

International Monetary Fund

E ducation and health are key dimensions of many of the Millennium Development Goals (MDGs). As 2015 approaches, calls for greater development effectiveness are taking on increased urgency for two reasons: development assistance for health and education has risen to unprecedented amounts, but has not led to expected improvements in outcomes; and the global crisis has forced a reexamination of social spending . This chapter highlights lessons about this disconnect between spending and outcomes derived from recent impact evaluations in health and education

Mr. Andrew M. Warner

Observer , February 1997 , v. 12 , iss. 1 , pp. 35 - 46 . International Monetary Fund , 2005 , Public Investment and Fiscal Policy-Lessons from the Pilot Country Studies , Washington , available at: Duflo , Esther and Michael Kramer , “ Use of randomization in the evaluation of development effectiveness ”, in G.K. Pitman , O. N. Feinstein , and G.K. Ingram ( eds. ), Evaluating Development Effectiveness, World Bank Series on Evaluation and Development Vol. 7