Glossary of Development Terms and Abbreviations

NB: Some of these terms are specific to DFID, others are used throughout the development community.

Package - a loose term for a group of related items e.g. a work package would comprise a number of tasks. 'Packaged aid' is used to describe a situation where a group of related projects are packaged together in order that their total cost reaches above the minimum threshold of a potential funder e.g. many IFIs will not consider lending less than 5 million ECU.

PAHO - Pan American Health Organisation

PAID - Pan African Institute for Development

PAM - Poverty Aim Marker

Paris Club - Government creditors who meet regularly in Paris under the chairmanship of the French Finance Ministry. They discuss and agree proposals for rescheduling bilateral official debt resulting in a multilateral agreement between the debtor and all the governments involved. This ensures equality if treatment between creditors.

PARIS21 - PARtnerships In Statistics for development in the 21st century

PARP - Policy and Resource Plan

Participation - taking part in an activity. Public participation concerns informing, consulting and involving members of the public in the decision-making process.

Participatory Development - This is also called popular participation, and may be defined as a process by which people take an active and influential hand in shaping decisions which affect their lives.

Participatory Evaluation - a broad term for the involvement or primary and other stakeholders in evaluation exercises.

Participatory evaluations are primarily orientated to the information needs of the stakeholders rather than the donor who acts as a facilitator. Primary stakeholders include actual and potential beneficiaries and clients. Other stakeholders could include project partners and relevant government departments.

Participatory Research - Research undertaken in partnership with end-users who, in general, are involved in the definition of the research agenda, the conduct of the research, the evaluation of results and the dissemination of findings.

Participatory Rural Appraisal (or PRA) - is a growing family of approaches and methods to enable local people to share, enhance and analyses their knowledge of life and conditions, and to plan, act, monitor and evaluate. Its extensive and growing number of methods includes visuals such as mapping and diagramming. PRA approaches and methods present alternatives to questionnaire surveys in appraisal and research, and generate insights of policy relevance. Related approaches include Participatory Learning and Action (PLA) and Rapid Rural Appraisal (RRA).

Partnership - aid activities should be regarded as a joint commitment to achieve common goals, with DFID in partnership with a government, organisation, institution.

Passive Investor - an investor who does not actively manage or would not contribute to the improvement of the efficiency of a company.

Pay Back - (or 'pay back period') the period over which the revenue from a project equals the original investment. A rather crude measure.

PCM - Project Cycle Management

PCS - Public and Commercial Services Union 

Peacebuilding - Umbrella term referring to all activities which contribute to consolidating or establishing a peace process, including economic/social programmes which may not themselves have specific conflict handling objectives, but which are part of a broader package with these overall objectives.

PEAP - Poverty Eradication Action Programme (Uganda)

PEM - Public Expenditure Management 

PEP - Public Enquiry Point

Performance - the degree to which a project or institution operates or operated according to various criteria or quality standards, such as Efficiency, Effectiveness and Relevance.

Performance Indicators - a variable or variables that allow the verification of changes in the project or show results relative to fixed targets.

Performance Measures - what will indicate achievement at each level of the hierarchy of objectives -quantified where possible, but also qualitative (adviser's opinion).

Period of Grace - being allowed to wait for a period of time before money has to be paid over. A way of softening a loan.

PERT Chart - a diagrammatic representation of project activities and tasks over the life of the project, with an indication of the resources involved at each stage (see also: GANTT Chart, Work Plan).

PFO - Principal Finance Officer

PHARE Countries - countries in Central and Eastern Europe eligible to take part in the European Union's PHARE Programme. At September 1996 countries in the mainstream programmes were: Albania, Bulgaria, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romanian, Slovak Republic, Slovenia.

PHARE Programme - a European Union initiative aimed at helping the countries of central Europe rejoin the mainstream of European development through future membership of the European Union. It provides grant finance to support its partner countries through the process of economic transformation and strengthening of democracy. The British share of the PHARE programme comes from the aid programme.

PIMS - Policy Information Marker System

Planned Impacts - positive or negative impacts expected to result (i.e. foreseen) from the project as designed and implemented.

The use of the terms 'intended' and 'unintended' is not recommended. Most projects would not want to say that negative impacts were 'intended' (i.e. a desired part of the objective).

Planning Balance Sheet - a form of cost-benefit analysis that incorporates positive and negative factors that cannot readily be quantified.

Pledge - A promise of financial aid made orally or in writing before specific commitment.

Policy Information Markers System (PIMS) - DFID's bilateral commitments are marked according to which of the priority objectives they target using this system.

Polluter Pays Principle - the polluter should bear the costs of pollution prevention and control measures. This principle has been endorsed by OECD member countries but it has some clear difficulties for economies in transition and developing countries.

POM - Policy Objective Marker

PPA - Participatory Poverty Assessment

Practical Gender Needs - There are what people need to perform their current roles more easily, effectively or efficiently; they can usually be identified by people themselves. Projects can be designed to meet the practical gender needs of both women and men without necessarily changing their relative position in society. See also Strategic gender needs.

Pre Conditions - external factors that have to be present and decisions that have to be taken before a project can start up.

Pre-Feasibility Study - preliminary assessment that takes place before a feasibility study - often undertaken as part of a large scale project.

PRGF - Poverty Reduction and Growth Facility (IMF)

Primary Production - the transformation of solar energy and its storage in plant tissue.

Primary stakeholder - This refers to those ultimately affected by a development programme, either positively (beneficiaries) or negatively (for example, those involuntarily resettled).

Principal Establishment Officer - assists the Accounting Officer and is directly responsible for providing assurance that there are efficient personnel systems in place across all parts of the department which will ensure that people with the skills and experience are available to carry out agreed responsibilities in support of Ministers' policies. This includes staff training and development; relations with the trade unions.

Principal Finance Officer (PFO) - assists the Accounting Officer in a government department and directly responsible for financial and related matters. S/he ensures there is effective financial management throughout the organisation, appropriate central control and robust systems and procedures which safeguard financial regularly and propriety and promote best value for money.

Prioritisation - the process of comparing projects, or parts of projects, and deciding their order of importance.

PRISM - Performance Reporting Information System Management

Private Flows - are long term (over one year) capital transactions by UK residents (as defined for balance of payments purposes) with aid recipient countries, or through multilateral agencies for the benefit of such countries. They include all forms of investment, including bank credit and export credits where the original maturity exceeds one year. Private flows are reported separately to DAC for direct investment, export credits, bank lending.

Process Evaluation - an evaluation aimed at setting out and understanding the internal dynamics of a project.

Process evaluations emphasise how a product/outcome is produced rather that analysing the product itself.

Process Indicator - a measure or sign of whether planned activities are being carried out, and how they are being carried out.

Procurement - purchase of goods or services.

Procurement Rules - regulations governing competitive bidding in the procurement process.

Programme - at its simplest a programme can be one or more related projects It is "a logical construction from which separate coherent sets of activities, or projects, might be delivered. At the same time a programme is more than a set of projects. It is a system of activities delivering outputs, or merely facilitating or brokering complementary activities".

Programme aid - The main form of non-project aid. It provides assistance to fund (i) a range of general imports, or (ii) an integrated programme of support for a particular sector or (iii) discrete elements of a recipient's budgetary expenditure. It assists countries with particularly acute balance of payments problems. In each case, support is provided as part of a World Bank/IMF co-ordinated programme of structural adjustment programme. (See also balance of payments support).

Project - "The concept of 'project' means different things to different users, or reflects different frames of reference. In finance and budgeting terms it is an investment with a specified economic return. In economic analysis a project is a potential income generating activity. In management terms the project notion often connotes a particular organisational unit.".

Projects can be classified in different ways: by function (experiment, pilot, demonstration); by task; by the properties of an organisation; by the technology employed; by sector; by sources of inspiration; by funding.

Project aid - financial aid, technical co-operation (or a combination of both) for he purposes of supporting a specified set of activities which are intended to achieve defined outputs and objectives.

Project Appraisal - a comprehensive and systematic review of all aspects of the project - technical, financial, economic, social, institutional, environmental - to determine whether an investment should go ahead.

Project Appraisal and Selection - rigorous testing to assess a project's viability - technical, economic, financial, institutional, risk appraisal.

The findings may be presented in an 'appraisal report' or 'project concept report'.

The basic question in any appraisal is whether the project contributes to the achievement of overall policy objectives. Appraisal can be a controlling process or a force for improvement.

The appraisal process compares options and checks the accuracy and completeness of information. The appraisal can be two stage process - first examining the broad principles and objectives, and then the details (see also: Appraisal).

Project-building Skills - the skills needed by the project proposer or sponsor in order to take a project through from the initial idea to a successful conclusion. The necessary skills include a good understanding of the whole project development process and its wider context, an ability to work in a multi-disciplinary context, good abilities in negotiating, presenting and communicating. A creative ability to see connections, to innovate and 'get things done'.

Project Concept Note (PCN) - a paper prepared at the earliest stages of project appraisal to obtain approval for more detailed work on project preparation and appraisal. It should outline the way in which the project is to be rigorously assessed. Technical, financial, economic, environmental and institutional factors are considered (see also: Project Appraisal).

Project Cycle - a useful tool for understanding the various stages that any project will probably go through. The same logic applies to simple project ideas within your own organisation and complex projects supported by a number of external funders.

The basic model includes the following stages:

(a) Project Identification - ideas for potential projects are identified and explored.

(b) Project Preparation - the project idea is carefully developed.

(c) Project Appraisal - the project is rigorously assessed.

(d) Project Implementation - the project is progressed in the agreed manner.

The more detailed version of the cycle, used by many funding agencies, emphasises decision making with feedback loops and includes aspects of negotiation, effectiveness, supervision and completion:

(e) Negotiations and Presentation - at the stage where a project proposal has been developed, the parties involved (usually the recipient/borrower and the donor/funder) negotiate the detailed requirements for implementation.

(f) Monitoring - the project will be monitored throughout the implementation period in order to make sure that everything is going according to plan and that corrective action can be taken where necessary.

(g) Evaluation - the project is assessed against its objectives in terms of performance, efficiency, and impact.

Project Definition - (see: Project Identification).

Project Description - the document that describes a proposed project and which is used to generate initial interest from funders and serves as the basis for further, more detailed project preparation.

A project description will normally comprise, as a minimum: the objectives, background, activities and outputs, the timescale and the budget required.

Project Design - (see: Project Development).

Project Development - a term used to encompass the whole process of project identification and preparation (see also: Project-building).

Project Director - (see also: Project Manager) - the person responsible for the day to day management of a project.

Project Document - the project papers on which the project is based (see also: project memorandum and exchange of letters).

Project Evaluation - to measure the extent to which a project has achieved its objectives. This requires the establishment of baseline information and a choice of indicators. The project is assessed against its objectives in terms of (a) performance (b) efficiency and (c) impact.

Evaluation takes place at particular stages of the project cycle.

The aim of evaluation is to provide feedback, possibly generating new project ideas. It is vital that the basis for the evaluation is built in to the project proposal at the earliest possible stage. (see also: Project Cycle; Ex Ante Evaluation; Ex Post Evaluation).

Project Framework - (see: Logical Framework).

Project Identification - the process of generating project ideas, then testing the options; these may be resource led, market based or need based.

Project Implementation - funds are disbursed and the project is carried out as planned and to the agreed timescale and budget. Skills are maintained beyond the initial implementation period. (see also: Project Cycle).

Project Management - managing project implementation in line with the agreed work plan and budget.

Project Memorandum - the paper which records all details of a project.

Project Monitoring - measuring how the project is being implemented and how it is operating - essential for evaluation and measuring performance. Reporting on costs, savings, other benefits, reporting to decision makers, may support generation of new projects. Continuous tracking of a project's development through collection of specified variables.

Progress is monitored according to the planned methodology and timescale. Monitoring covers both financial and non-financial aspects of the project - the use of resources, measurement of performance and outputs (see also: Project Cycle).

Project Negotiation/Presentation - The parties involved negotiate the detailed requirements for implementation. An agreement is reached and the legal obligations set out in a document. (see also: Project Cycle; Loan Document).

Project Preparation - (project formulation/design) - serious consideration of a project and its technical, economic and financial feasibility, resulting in a detailed proposal capable of implementation (see also: Project Cycle).

Project Preparation Facility (PPF) - the World Bank's project preparation team; it may fund feasibility studies.

Project Proposal - the translation of an idea into a structured document.

Project Purpose - the future improved situation characterised by sustainable benefits for the project's target group, benefits which will start to appear during the project.

Projects and Evaluation Committee (PEC) - a senior management committee in DFID who examine every project proposal over £7.5m, consider the project completion reports synthesis report prepared by Evaluation Dept and oversee Evaluation policy and the programme of ex-post evaluations.

Promissory Note - a document, usually signed by the Director General Resources, which promises to pay a stated amount on demand. It is non-interest-bearing and is non-negotiable. In DFID these are usually only used with multilateral payments. Capital subscriptions to the World Bank, the regional development banks, the European Bank for Reconstruction and Development, and the International Fund for Agricultural Development are made in the form of promissory notes which are deposited by DFID with the Bank of England. They are subsequently cashed by the Agency when needed. The disbursements recorded against DFID programmes and Gross Public expenditure on Aid are at the time of encashment; disbursements recorded as official development assistance are at the time of deposit.

Propriety of Expenditure - (see also regularity) is the requirement that expenditure and receipts should be dealt with in accordance with Parliament's intentions and the principle of Parliamentary Control, including the conventions agreed with Parliament, and in particular the Public Accounts Committee.

Proxy Indicator - a measure or sign that represents or approximates changes in areas that cannot be measured directly, or where it is difficult or expensive to measure change directly.

The number of women attending meetings might be considered as a proxy indicator for female participation. Proxy indicators (e.g. expenditure data) can be more cost-effective and reliable than direct indicators (e.g. income data). also known as indirect indicators.

PRS - Poverty Reduction Strategy 

PRSC - Poverty Reduction Strategy Credit 

PRSP - Poverty Reduction Strategy Paper 

PS - Palace Street 

PSA - Public Service Agreement 

PSIA - Poverty and Social Impact Analysis

Public Accounts Committee - of Parliament. It examines matters arising from National Audit Office reports on government departments' accounts and value for money aspects. It summons officials (usually the department's Accounting Officer, the Permanent Secretary) to hearings to explain performance. The hearings are usually held in public. The Committee reports to Parliament and the Government responds through Treasury Minutes.

Public Expenditure Survey (PES) - This is the means by which the Government reviews public expenditure for the coming 3 years. It enables Ministers to look afresh at their priorities in the light of the changing needs of the Nation and likely available resources. PES figures provide the basis for Cabinet decisions on levels of public expenditure and form the background against which government departments prepare their annual Supply Estimates (see Supply Estimates).

Purpose - the objective or point of doing something. The desired Impact on the Target Group or institution which a project is expected to achieve if completed successfully. The main reason for project implementation.

The Purpose is the most critical of all the logical frame concepts. It typically describes the use or implementation of the project Outputs. The Purpose (unlike the Outputs) will be beyond the control of the project team, who are not directly accountable for it. This is usually because it requires a change in behaviour by people or institutions (see Assumptions) or because the impact is not expected to be realised within the life of the project.

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