. Distinguish between monitoring and evaluation. Explain various tools and techniques of monitoring.

Between monitoring and evaluation of projects, one can find a variety of differences. Monitoring and Evaluation are two states of analysis in terms of the progress made in relation to the goals of an enterprise or a firm. These two states of analysis differ in their manner of approach. Monitoring is the systematic analysis occasionally made of information to identify changes over a period. On the other hand, evaluation is the analysis of the effectiveness of an activity that would finally prompt a judgment regarding the progress made in relation to the goals of a firm. This is the major difference between monitoring and evaluation.

An evaluation studies the outcome of a project (changes in income, housing quality, benefits distribution, cost-effectiveness, etc.) with the aim of informing the design of future projects. An example from Monitoring and Evaluating Urban Development Programs, A Handbook for Program Managers and Researchers describes an evaluation of a cooperative program in El Salvador that determined that the cooperatives improved the lives of the few families involved but did not have a major impact on overall employment.
Bamberger describes evaluation as “mainly used to help in the selection and design of future projects. Evaluation studies can assess the extent to which the project produced the intended impacts (increases in income, better housing quality, etc.) and the distribution of the benefits between different groups, and can evaluate the cost-effectiveness of the project as compared with other options”.

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