Improving Poverty M&E Systems in Guatemala The proposed IDF grant would support institutional capacity building in UMEPP by financing work in the following areas: 1.   Social Sector M&E Diagnostic.  The first task that the IDF grant would finance is to compile a catalogue of all social sector programs being currently implemented in particular for health, nutrition and education. This would be followed by a review of their M&E systems to ensure that the proposed results-based system is built on the foundations of existing institutional structures, systems and capacity.  The focus on the social sectors would serve as a manageable foundation for a broader review of M&E work in the future. 2.   Capacity Building in Results-Based Management and Impact Evaluation.  Working with WBI, the proposed IDF would support technical assistance and workshops to (i) provide support for skill enhancement in UMEPP/SEGEPLAN, INE and the line ministries in results-based monitoring and impact evaluation; (ii) build awareness of the value of M&E with key constituencies such as Congress; and (iii) build partnerships/support development of in-country training capacity (training of trainers within UMEPP or in training institutes, private sector organizations, and universities) so as to provide a foundation for strengthened local capacity in M&E. 3.   Institutional Partnerships & Coordination.  While SEGEPLAN has been assigned primary responsibility for monitoring and evaluating public policy, three types of inter-institutional links will clearly be necessary: (i) links between agencies involved in M&E of social sectors program and the Treasury (e.g, SEGEPLAN, SESAN and agencies within the line ministry, in particular the Ministries of Education and Health); (ii) building capacity and technical training in M&E for line ministries' personnel; and (iii) the links between SEGEPLAN, INE and line ministries in terms of information flows.  As such, institutional capacity and inter-agency coordination will be paramount. The proposed project would support these institutional coordination efforts, through technical assistance, studies, and training, both in SEGEPLAN and in these partner agencies. 4.   Support Selected Impact Evaluations.  The UMEPP unit will support the impact evaluation of 4 existing programs central to the government's national development goals linked to poverty reduction (Territorial Rural Development, PRONADE school-based management, SIAS, Maternal-Infant Health and Nutrition).  Such evaluations would be designed specifically with a view towards building on such an experience to systematize their expansion and application towards a broader results-based M&E system.  As such, they would pay particular attention to: identifying information needs within a broader strategy for data and information systems; identifying and evaluating key indicators; supporting feedback loops for policy and budgets; clarifying and building institutional coordination and arrangements; and developing incentives and results-based management orientation within SEGEPLAN and its partner agencies.  This would complement and lend overall strategic guidance to the technical/data collection impact evaluation work included in several World Bank-supported projects. 5.   Strategy and Action Plan for Results-Based M&E System.  The above efforts will all lead to the design of a strategy laying out the key architecture for constructing a results-based M&E system and an accompanying action plan for implementing such a system. This plan will cover key aspects of a results-based M&E system, including: incentives for results-based management orientation; responsibilities; procedures; information flows and data sources; capacities (in various agencies); mechanisms for feedback loops to policy, planning and budget decision-making to identify key gaps, opportunities; mechanisms to ensure access transparency; organizational and institutional coordination issues. This 'map' for UMEPP would guide SEGEPLAN in consolidating its role as the principal public agency responsible for designing, coordinating, monitoring and evaluating public investments. The Government of Guatemala is committed to improving its monitoring and evaluation systems as an input to strengthening transparency, accountability and the effectiveness of public sector spending. As identified in the CAS, the Ministry of Finance, the Ministry of Planning (SEGEPLAN) and the National Statistical Institute (INE) have been working in conjunction with one another to spearhead improvements in Guatemala#s monitoring and evaluation systems. A central element of the present strategy mandates SEGEPLAN to build on the well established financial administration (SIAF) and government auditing (SAG) systems to work with three line ministries (health, education and communication infrastructure) in establishing a results-based monitoring and evaluation system that would track final outcomes and related intermediate outputs of key programs and policies.  In this context, SEGEPLAN has requested World Bank support to strengthen its capacity for the design and building of an integrated results-based M&E system. The grant would help SEGEPLAN firmly establish its new Public Policy Monitoring and Evaluation Unit.  The tasks funded by the grant will lay the foundations for the design of an improved results-based M&E system, with an emphasis on improving accountability, regular and objective program evaluation, and continuous feedback for the on-going design and implementation of social programs in Guatemala.