This section provides a definition and an overview of evaluation at the Bank. It outlines the principles applied to the Bank's independent and self-evaluation dimensions, IEG 's relationship with the Bank's Board of Executive Directors and the terms of reference for the Committee of Development Effectiveness (CODE).

The World Bank has developed an increasingly rigorous system of evaluation over the past 30 years. Two independent reviews sponsored by evaluation units of regional development banks have found that the Bank's evaluation tools and approaches come closest to best practice among the multilateral development banks. Evaluation measures achievements in relation to institutional policies, Bankwide program objectives, and the goals set for each operation. It is designed to:

• provide an objective basis for assessing the performance of policies, programs, projects, and processes;help provide shared accountability for the achievement of the Bank's objectives; and
• improve policies, programs, and projects by identifying and disseminating the lessons learned from experience and by making recommendations drawn from evaluation findings.

Evaluation at the Bank has two major dimensions: (a) self-evaluation by the units responsible for particular programs and activities; and (b) independent evaluation by the Independent Evaluation Group (IEG). These dimensions link to a system of organizational learning, use of external expertise and stakeholder participation-that, in combination, make it unique among development organizations. The following principles apply to both independent and self-evaluation.

• Usefulness: For evaluation to affect decisionmaking, decisionmakers must perceive the findings as useful, timely, and geared to current operational concerns. To ensure a practical focus, Bank evaluations involve operational managers, borrowers, cofinanciers, and beneficiaries of Bank assistance.Credibility: If Bank managers and staff are to use the lessons learned from evaluation, they must perceive the evaluation as objective, rigorous, and impartial. The credibility of evaluation rests on the professional quality of the staff, the rigor of its methods, and timely availability of its findings.
• Transparency: All evaluation reports are issued to Bank member governments and to the Bank's management, and are available to all staff. The evaluation process itself (including self-evaluation) is subject to independent annual reviews by the Committee on Development Effectiveness (CODE) of the Bank's board.

In addition, evaluation by IEG must be based on:

• Independence: If independent evaluation is to be impartial, its findings, analyses, and conclusions must be free from bias. This means that evaluation by IEG must be independent from line management at all stages of the process, including planning of work programs, formulation of terms of reference, staffing of evaluation teams, and clearance of reports. More information on the Independence of IEG is available here.

IEG reports directly to the Bank's Board of Executive Directors, which oversees its work through the Board's Committee on Development Effectiveness (CODE). CODE oversees the operations evaluation system of the Bank and of the International Finance Corporation. It was established in 1994 as a standing committee of the Board of Executive Directors. The eight-member committee has the following terms of reference:

• To review the work program and reports produced by IEG and the Operations Evaluation Group (OEG) of the International Finance Company (IFC)-and management's responses to them-and to identify policy issues for consideration by the board.To satisfy itself that the Bank's operations evaluation and self-evaluation activities are adequate and efficient.
• To examine selected issues concerning operations evaluation and development effectiveness, for review and decisionmaking by the board.

CODE deliberates on issues that have a bearing on relevance, efficiency, and effectiveness of the Bank's operations-including operational policies and business processes-and monitors the implementation of Bank activities to ensure that the overall purpose of reducing poverty is being served.