Cost-effectiveness analyses: A funders’/implementers’ perspective

• In Event: Cost effectiveness analysis for sustainable education policy

Proposal

Cost-effectiveness analyses (CEAs) provide important inputs into programming and policy decisions by providing information on the cost components of an intervention and which programs are most likely to provide the greatest value for money. CEAs can be applied to identify the most sustainable interventions for a desired outcome – when an intervention is simply too costly for a government to maintain after donor support is withdrawn, or where lower-cost, more appropriate technologies could be applied. CEAs allow donors and implementers to demonstrate the results of their investments, leading to more informed decision-making and a more thorough examination of expenses for various interventions. Obtaining detailed data on the costs of an intervention helps in budgeting, program design, management, and communications.

CEAs are data-intensive and requires meaningful collaboration between donor staff (project management, field experts, economists, and other specialists), government counterparts, and implementing partners. During this session, panelists from leading large-scale funders and implementers will discuss: (1) how they use CEAs and sensitivity analysis to review and improve the sustainability of their investments; (2) the practicalities of collaborating with partners to collect the correct data and conduct meaningful analyses; and (3) how they incorporate rigorous cost-effectiveness analysis into project design to ensure that scarce development dollars are well spent to achieve real, meaningful, and sustainable impact.

Author

• Elena Walls, US Agency for International Development (USAID)