Monitoring, Evaluation, Accountability and Learning
A number of activities to be implemented within each pilot intervention in order to understand, learn about and document the impact of forecast-based actions. This helps build a robust evidence for the FbF concept. This section includes Cost-benefit Analysis.
Cost-Benefit Analysis (CBA)...
...is a tool used to compare the benefits and costs of a project, program or action. The conclusions drawn from a CBA are in terms of the Benefit/Cost (B/C) ratios, which allows the determination of the economic benefits obtained for each dollar invested in the project.
In the humanitarian context, a CBA is commonly used to consider what happens if a disaster occurs with vs. without an intervention in place. This analysis allows the comparison of the cost and benefits of different types of actions, which serves as criteria to choose the best action to be implemented.
There are three different approaches to conduct a CBA in the humanitarian sector:
a) Hypothetical approach: backward-looking (action was already implemented) or forward-looking (action has not been implemented yet).
b) Comparative approach: between two similar communities (intervention vs. control group).
c) Before-and-After approach: same community before and after an intervention takes place.
Considering that Forecast-based Financing actions had not been implemented yet, first, a hypothetical forward-looking approach can be done. Then, as soon as the Standard Operational Procedures are triggered, when it is feasible a comparative approach using intervention vs. comparison (control) communities may also be implemented.