ABSTRACT
Performance assessment must be viewed as part of the management of the organization and thus directly linked to the accountability of individual managers. This chapter describes how good monitoring and evaluation (M&E) can close the expenditure management loop, and summarizes the approaches to evaluation suitable to countries with different capacity. It reviews the concept of performance and its various indicators, and how to gradually introduce in the budgeting system an effective orientation toward the results of public spending—in light of the lessons of international experience in a variety of different countries. The new values of the performance indicators provide a measure of the improvements achieved and the basis for starting the next round of benchmarking—the reason why the literature often refers to the process as "benchmarking and continuous improvement". The Mass Transit Railway Corporation (MTRC) performance benchmarking originates from a "Community of Metros" project begun in 1995.
