There is broad recognition of the challenges in evaluating policy and programmes on their contribution to sustainable development. Impact evaluations of PSD programmes are carried out at the behest of a particular configuration of interest groups with different expectations. Some groups want to know whether a programme has worked, others want to know how to do these programmes better, others fear that PSD programmes might result in sub-optimal or adverse development outcomes in recipient countries, and some want to be sure that the programme benefits the private sector in the donors' domestic economies. This chapter discusses these with reference to private sector development programmes and explores how contribution analysis, which is a structured stepwise process of theory-based evaluation, can address these challenges and generate findings to improve learning and accountability.
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