TRAFFIC LIGHT METHODOLOGY

A traffic light methodology is used to classify the progress on each indicator as achieved, on track, moderate progress / watch, or off track as described in the detailed methodologies below for the Country Development Results and IDB Group Performance indicators.

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Country Development Results

Each of the Country Development Results indicators for which expected results have been established will be classified into one of the following four categories:

  • Achieved
  • On track(80% or more of the target has been achieved or programmed to be achieved by 2019)
  • Moderate progress(60% to 80% of the target has been achieved or programmed to be achieved by 2019)
  • Off track(less than 60% of the target has been achieved or programmed to be achieved by 2019)

The following equation will be used to determine status in a particular year:

( Cumulative actual progresssince 2016 ) + ( Programmed progressthrough 20191 )
( Expected results2016-20192 )

IDB Group Performance Indicators

Each of the IDB Group Performance indicators will be classified in one of the following four categories:

  • Achieved(only applicable in 2019)
  • On track(target expected to be met or exceeded in 2019)
  • Watch(unclear whether target will be met in 2019)
  • Off track(target not expected to be met in 2019)

The IDB Group Performance indicators vary in nature and include: i) indicators for which an increase from the baseline value is desired; ii) indicators for which a reduction from the baseline value is desired; iii) indicators for which the target represents cumulative progress; and iv) indicators for which a baseline is missing. The specific methodology used to classify the indicators varies as described below.

  • Indicators for which an increase from the baseline value is desired

    The traffic light methodology assumes a linear progression such that 25% of the 2019 target should be achieved each year. The following equation is used to determine status in a particular year:
    Value in Year X - Baseline
    Target - Baseline
    where X = [2016, 2017, 2018, 2019]
    • For 2016, if the result of the equation above is a value ≥ 25%, the indicator will be classified as on track. If the value is < 25% but ≥ 15% then the indicator will be classified as watch. If the value is <15%, then the indicator will be classified as off track.
    • For 2017 the model assumes that 50% of the 2019 target should be achieved. If the result is a value ≥ 50%, the indicator will be classified as on track. If the value is < 50% but ≥ 30%, the indicator will be classified as watch. If the value is <30% in 2017, then the indicator will be classified as off track.
    • For 2018 the model assumes that 75% of the 2019 target should be achieved. If the result is a value ≥ 75%, the indicator will be classified as on track. If the value is < 75% but ≥ 45%, then the indicator will be classified as watch. If the value is <45% in 2018, then the indicator will be classified as off track.
    • For 2019 the model assumes that 100% of the 2019 target should be achieved. If the result is a value ≥ 100%, the indicator will be classified as achieved. If the value is < 100% but ≥ 60%, then the indicator will be classified as having moderate progress. If the value is <60% in 2019, then the indicator will be classified as off track.

    This methodology applies to the following indicators:

    • Partners satisfied with IDB Group development solutions
    • Lending to small and vulnerable countries
    • Operations meeting target preparation time
    • Partners satisfied with IDB Group use of multi-sector approach
    • Active operations with satisfactory performance classification
    • Operations with satisfactory development results at completion
    • Operations with high environmental and social risks rated satisfactory in the implementation of mitigation measures
    • Mid and senior-level IDB Group staff who are women
    • Partners satisfied with IDB Group’s ability to convene other partners
    • Partners that consider IDB Group solutions to be innovative
    • Total IDB Group blog readership
    • Average visits to IDB Group publications
  • Indicators for which the baseline value is missing

    Indicators will be classified in one of the three following categories based on variance against the targets: If the reported value is ≥ 90% of the target, the indicator is considered on track. If the reported value is ≥ 70% and < 90% of target, the indicator will be classified as watch. If the reported value is < 70% of the target, the indicator will be classified as off track. Using the following equation, variance against the targets is used to determine status:
    Value in Year X
    Target
    Target where X = [2016, 2017, 2018, 2019]

    This methodology applies to the following indicators:
    • No indicators are currently using this methodology
  • Indicators for which the target represents cumulative progress

    The methodology described in the Indicators for which an increase from the baseline value is desired section also applies to the following indicators, but in these cases, the baseline is assumed to be zero because these are indicators for which the target represents cumulative (presented as aggregated number rather than percentage) progress over the 2016-2019 period:
    Value in Year X
    Target
    where X = [2016, 2017, 2018, 2019]
     

    This methodology applies to the following indicators:

    • Mobilization volume by NSG financed projects/companies
  • Indicators for which a reduction from the baseline value is desired

    If the reported value for the year is ≤ the baseline, the indicator will be classified as on track. If the value is 0% to 20% higher than the baseline value, the indicator will be classified as on watch. If the value is greater than 20% higher than the baseline value, the indicator will be classified as off track.
     

    This methodology applies to the following indicators:

    • Cost to income ratio (SG only)
    • Cost to development-related assets ratio (SG only)
  • Note: Progress on the Regional Context indicators cannot be directly attributed to the IDB Group and therefore no targets were set at this level of the CRF and no traffic light assessment is conducted.
  • 1 In the case of SG operations, “programmed progress” refers to data that has already been entered in the PMR as specific planned results for contributing projects. In the case of NSG operations, figures for programmed achievement may rely on the extrapolation of actual results.
  • 2 Refers to the expected results as presented in the approved CRF 2016-2019.