As explained in the 'Approach' section (see left hand bar) monitoring and evaluation play an important role in the analysis of poverty and social impacts of reforms. During implementation, they are critical to validate ex-ante analysis and, where necessary, to influence the reformulation of policy reforms. By following impact indicators and the assumptions underlying the analysis, monitoring helps to signal unexpected developments. Monitoring and evaluation are also central in the promotion of accountability and ownership.

In order to enhance their impact, monitoring and evaluation systems are best set up during the initial stages of reform. They should also be integrated with existing systems in order to strengthen national capacity.