U4 Issue
Cost-effectiveness and cost-benefit analysis of governance and anti-corruption activities
Cost-effectiveness and cost-benefit analysis methods are currently underutilised in evaluations of governance and anti-corruption reforms in developing countries. This limits opportunities to inform policy and may lead to suboptimal reform choices and programme designs. In general, complicated interventions such as national anti-corruption strategies or anti-corruption agencies do not lend themselves easily to cost-analysis approaches, often due to the challenge of measuring the impact in terms of reduced corruption. However, cost-effectiveness analysis – and in some cases cost-benefit analysis – of sector programmes with inbuilt anti-corruption measures is a useful tool for guiding decision makers as they choose between alternative integrity measures and assess the return on investment. Cost-benefit analysis hinges on an ability to translate outcomes into a monetary value, something most feasible with public finance–related interventions. Where outcomes cannot be monetised, there are still opportunities for cost-effectiveness analysis. Two impact evaluation designs are presented that make use of cost-effectiveness analysis to overcome corruption measurement challenges. Using such designs, the value of anti-corruption activities can be evaluated even without measuring corruption.
![Cost-effectiveness and cost-benefit analysis of governance and anti-corruption activities](https://cdn.sanity.io/images/1f1lcoov/production/75f6b9d093675193dc1c03c1b4aa46b994f733b9-1504x2128.png?auto=format&w=3840&q=75&fit=max)
Cite this publication
Johnsøn, J. (2014) Cost-effectiveness and cost-benefit analysis of governance and anti-corruption activities. Bergen: Chr. Michelsen Institute (U4 Issue 2014:10) 36 p.
Disclaimer
All views in this text are the author(s)’, and may differ from the U4 partner agencies’ policies.
This work is licenced under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International licence (CC BY-NC-ND 4.0)