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Paper short abstract:

This paper explores the limitations of quantitative data in evidence-based policymaking within development finance. I argue that integrating participatory evaluation with ethnographic methods can offer a more comprehensive view of the effects of development interventions.

Paper long abstract:

Evidence-based policymaking in development finance often leans heavily on quantitative data, which can be used to assess additionality (that the financial support provided leads to outcomes that would not have occurred otherwise) and contribution (how the financial support adds value or plays a role in achieving development outcomes). However, this data often overlooks unforeseen impacts—both positive and negative—on the communities surrounding an intervention. It's like peeling a banana: you can measure its weight and appearance, but you miss the subtle nuances of taste and texture that give it true meaning.

Through 18 interviews with evaluation directors at development finance institutions and small-scale farming entrepreneurs, I sought to uncover common views on the different types of impact information. What emerged is that participatory evaluation—where stakeholders are actively brought into the evaluation process, including in the design of metrics that apply to them—can effectively manage intervention risks. By pairing this approach with ethnographic study, a deeper understanding of people's lived experiences with development finance policies and interventions can be achieved.

The findings suggest that actively involving stakeholders in the design of metrics and evaluation processes can lead to more relevant, meaningful insights and a stronger sense of ownership over the evaluation results. It improves data quality thereby enhancing uptake and use in development policy. This approach is especially useful in community development, where local knowledge is key to assessing the true effectiveness of an intervention.