Difference between revisions of "Impact Assessment"
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Impact assessments are conducted in the early stages of a proposed project to try to predict the potential positive and negative effects of the project on the environment and society. They are defined by the International Association for Impact Assessment (IAIA) as “the process of identifying the future consequences of a current or proposed action.” (www.iaia.org) | Impact assessments are conducted in the early stages of a proposed project to try to predict the potential positive and negative effects of the project on the environment and society. They are defined by the International Association for Impact Assessment (IAIA) as “the process of identifying the future consequences of a current or proposed action.” (www.iaia.org) | ||
| − | Carrying out an impact assessment involves conducting a thorough analysis of current conditions, reviewing the effects of past changes and projects in the affected area, and working with experts and stakeholders to extrapolate what may happen as a direct or indirect consequence of carrying out the proposed project. | + | Carrying out an impact assessment involves conducting a thorough analysis of current conditions, reviewing the effects of past changes and projects in the affected area, and working with experts and stakeholders to extrapolate what may happen as a direct or indirect consequence of carrying out the proposed project. <membersonly> |
==Overview== | ==Overview== | ||
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Microfinance impact assessments measure “how the services of a microfinance institution (MFI) impact the lives of its clients in such areas as employment, income, nutrition, education, health, and gender equity. It is the primary tool used to determine the effectiveness of microfinance as a development intervention.” (Anton Simanowitz) They borrow from the methodologies for health, environmental, and social impact assessments, but also face unique challenges. Primary among them is the fact that money is fungible (that is, it is interchangeable with other money), so it can be difficult to track loan money and be sure it is actually spent according to the borrower’s stated purpose. That in turn makes it more difficult to measure the economic impacts of the money lent. | Microfinance impact assessments measure “how the services of a microfinance institution (MFI) impact the lives of its clients in such areas as employment, income, nutrition, education, health, and gender equity. It is the primary tool used to determine the effectiveness of microfinance as a development intervention.” (Anton Simanowitz) They borrow from the methodologies for health, environmental, and social impact assessments, but also face unique challenges. Primary among them is the fact that money is fungible (that is, it is interchangeable with other money), so it can be difficult to track loan money and be sure it is actually spent according to the borrower’s stated purpose. That in turn makes it more difficult to measure the economic impacts of the money lent. | ||
| − | ==Challenges and Successes with Microfinance Impact Assessments== | + | ===Challenges and Successes with Microfinance Impact Assessments=== |
In recognition of the complex realities they face, microfinance institutions have changed the focus from “proving” to “improving” results in order to come up with meaningful statements regarding the impacts of their efforts. Rather than to trying to prove direct cause and effect between an individual’s receipt of a loan and his or her becoming more economically successful, the goal is to show improvements in overall social indicators for the target group, as compared to a control group. Also, longitudinal indicators (comparisons of where people were prior to, during, and after the loan) are aggregated to gain a clearer understanding of impacts over the whole life-cycle of loans. In a sense, microfinance institutions are conducting individual impact assessments for each loan they provide, then using those unique stories to piece together the overarching themes. | In recognition of the complex realities they face, microfinance institutions have changed the focus from “proving” to “improving” results in order to come up with meaningful statements regarding the impacts of their efforts. Rather than to trying to prove direct cause and effect between an individual’s receipt of a loan and his or her becoming more economically successful, the goal is to show improvements in overall social indicators for the target group, as compared to a control group. Also, longitudinal indicators (comparisons of where people were prior to, during, and after the loan) are aggregated to gain a clearer understanding of impacts over the whole life-cycle of loans. In a sense, microfinance institutions are conducting individual impact assessments for each loan they provide, then using those unique stories to piece together the overarching themes. | ||
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* U.S. Department of Commerce, National Oceanic and Atmospheric Administration, National Marine Fisheries Service on Social Impact Assessments: http://www.nmfs.noaa.gov/sfa/social_impact_guide.htm | * U.S. Department of Commerce, National Oceanic and Atmospheric Administration, National Marine Fisheries Service on Social Impact Assessments: http://www.nmfs.noaa.gov/sfa/social_impact_guide.htm | ||
* Microfinance Gateway (website for CGAP): http://www.microfinancegateway.org | * Microfinance Gateway (website for CGAP): http://www.microfinancegateway.org | ||
| − | Online Survey Tool: www.surveymonkey.com | + | * Online Survey Tool: www.surveymonkey.com |
==References== | ==References== | ||
Latest revision as of 08:27, 17 July 2008
This article was based on an article prepared for the NGO Handbook by Jennifer L. Tavis, titled, "Impact Assessments and Risk Evaluation.
Impact assessments are conducted in the early stages of a proposed project to try to predict the potential positive and negative effects of the project on the environment and society. They are defined by the International Association for Impact Assessment (IAIA) as “the process of identifying the future consequences of a current or proposed action.” (www.iaia.org)
Carrying out an impact assessment involves conducting a thorough analysis of current conditions, reviewing the effects of past changes and projects in the affected area, and working with experts and stakeholders to extrapolate what may happen as a direct or indirect consequence of carrying out the proposed project.
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