The Role of Technical Cooperation and Tools to Improve Monitoring

This study assesses whether the deployment of Technical Cooperation operations (TCs) of the Inter-American Development Bank is related to business development and which alert indicators predict problems in TC execution. The study finds that TC approvals are associated with increases in the IDB lending portfolio in country/sectors. The associations last up to 3 years from the time of the approval. In addition, to improve monitoring of TCs in execution, attention must be given to alert indicators, such as the indicator activated when more than six months have passed since disbursement eligibility and no disbursements have taken place. The alert indicators considered also have predictive power on the unsatisfactory delivery of planned outputs.