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Fourth, ID achievement in projects and overall project performance can be expected to be positively correlated although it is difficult to predict how strong the relationship will be. The degree of correlation will depend not only on the nature and objectives of ID, but also on the quality of ID activities. If the focus of ID is on strengthening project management or on improving specific functions or systems directly relevant to the project, there is likely to be a strong and immediate impact of ID on project performance. If, on the other hand, ID supports studies or training of a long-term nature, it is doubtful that an immediate impact will be felt on project outcomes. Overall project success may also assist ID achievement especially if it facilitates the completion of ID activities.

An analysis of the OED data for 1987 and 1988 shows that there is a significant positive relationship between ID achievement and the overall achievement of project objectives. Table 6 partitions a total of 185 projects (CY87&CY88) into four segmentE. They are divided vertically into two categories (satisfactory and unsatisfactory) by overall achievement rating. The same projects are divided horizontally into negligible and substantial ID achievement categories. Of the total number of projects with a satisfactory overall rating (70%), nearly 80 percent had substantial ID achievement. Of the projects rated unsatisfactory overall, only 17 percent had substantial ID achievement. Of the projects which had an overall unsatisfactory rating, 83 percent had negligible ID achievement, whereas only 23 percent of the projects with overall satisfactory rating had negligible ID achievement. The results reported above shows that while ID achievement is not a sufficient condition for overall project performance, it seems to be an influential factor. Further analysis of the nature and elements of ID is necessary for to better understand the relationship between the two. External factors, for example, could neutralize the effects of ID or comnensate for its lack. ID is only one of the overall project objectives and certainly not a dominant one in most cases.

Fifth, ID achievement and project sustainability (continuation of benefits beyond the project period) are positively correlated. This implies that strengthening of institutions and upgrading of skills and capacities that take place through pzoiects contributes to sustainability. Table 7 shows that of 41 projects with substantial ID achievement, 40 were likely to be sustainable. Of the 34 projects unlikely to be sustainable, only one had substantial ID. On the other hand, of the 46 projects with negligible ID achievement, 33 were unlikely to be sustainable. Sustainability is obviously influenced by several factors, but ID is certainly an important one of them. On the link between ID and sustainability, OED's Annual Review for 1988 observed: Most sustainable Bank-financed operations put a major emphasis on the development of the institutional capacity required to sustain benefit flows after their completion. As the complexity of projects increases, the demand for human capital becomes more critical to sustainability. Prospects for sustainabilitv are better in projects where the Bank has been able to ensure that the goals, and intended means of achieving them, are compatible with the attitudes and cultural values of their intended beneficiaries.