OBJECTIVES

• Identify the contribution of cost analysis to M&E, the mechanics of different approaches as well as the pitfalls and limitations in different contexts
• Practice identifying and measuring costs in a concrete programme example

OUTLINE

Cost analysis is frequently given inadequate attention in M&E. This part focuses on identifying what is involved in different approaches to cost analysis, the strengths and limitations. It includes specific attention to the use of cost analysis in crisis and unstable contexts.

6.2.1

COST ANALYSIS

See text above, under "Outline".

FN	Cost analysis -
CCS	Cost analysis in M&E Approaches to cost analysis Cost analysis - basic terms Steps in cost analysis
OH	TO DO: Costs TO DO: Cost analysis frameworks
EX	Group work: identifying and measuring costs

REFERENCE MATERIALS

Brenzel, L. (1993). Selecting an essential package of health services sing cost-effectiveness analysis: a manual for professionals in developing countries. Harvard School of Public Health. Available at http://www.hsph.harvard.edu/ihsg/publications/pdf/No-5.PDF

Gosling, L. and Edwards, M. (2003) Toolkits: A practical guide to planning, monitoring, evaluation and impact assessment. Pp. 235-241

Hallam, A (1998). Evaluation Humanitarian Assistance Programmes in Complex Emergencies. Relief and Rehabilitation Network Good Practice Review no. 7. London: Oversease Development Institute

Hallam, A (1996). Cost-effectiveness Analysis: A Useful Tool for the Assessment and Evaluation of Relief Operations?. RRN network paper. ODI, Lonond. Available at: http://wwww.reliefweb.int/w/lib.nsf/LibDocsByKey/LGEL-5JHEVP/$FILE/odi-cost-apr96.pdf?OpenElement
This paper was produced based on the experience of doing cost-effectiveness analysis in the Multi-Donor Evaluation of Emergency Assistance to Rwanda in 1994. The paper provides a description of what kind of analysis was planned, the findings and the practical challenges in carrying out the analysis.

Kee (1994) “Benefit-Cost Analysis in Program Evaluation” in Joseph S. Wholey, Harry P. Hatry, and Kathryn E. Newcomer (eds.),Handbook of Practical Program Evaluation, Jossey-Bass Publishers: San Francisco. 1994: 456-491

Phillips, M. and Huff-Rousselle, M. (2001) Resources and Tools: A Step-by-Step Methodological Guide for Costing HIV/AIDS Activities. Bethesda: Partners for Health Reformplus. 50 p.
This guide is not written as a detailed training tool but provides an thorough step-by-step description of the process of cost analysis for HIV/AIDS activities. For each step it provides a clear description of why, what to consider, how to do it and what you end up with. Even for readers not focusing on evaluation of HIV/AIDS programming, this gives a good illustration of work involved in managing cost analysis.

Pinkerton, S.D., (2002). Ethical issues in cost-effective analysis. Evaluation and Program Planning. Vol. 25 #1. Elsevier Science Ltd. 71-72; 74-81.

Riddel, R. (1996) Linking Cost and Benefits in NGO Projects: current practice and debate within British NGOs”, a paper for UK ODA (now DFID), ODI London.

J. Valadez and M. Bamberger (1994). “Monitoring and Evaluating Social Programs in Developing Countries: A Handbook for Policymakers, Managers and Researchers. EDI Development Studies

Rossi, P.H., Freeman H.E., Lipsey, M.W. (1999). Evaluations: A systematic approach 6th edition. Sage Publications. Thousand Oaks, CA pp 365-395

Thompson, M. S. (1980). Benefit-cost analysis for program evaluation. Beverly Hills: Sage.

Sewell M & Marczak M., n.d., at www.ag.arizona.edu/fcr/fs/cyfar/Costben2.htm