Background: Evaluation is a tool that can promote accountability and enhance organizational improvement. For these reasons funding entities from government to foundations are increasingly relying on program evaluation as a key instrument to determine effectiveness and hold recipient organizations accountable. What has ensued is an environment of…

In October 1994, legislation established a requirement that Public Health Services (PHS) programs spend at least 0.2% of appropriated funds on program evaluation. Legislative changes are a result of a study of the use of PHS set-aside funds from 1988 through 1992. They are intended to encourage more and better evaluation. (SLD)

The question of whether economic development programs can be evaluated seems simple, but the answer is not simple because of the nature of evaluation. Determining a program's effectiveness requires the evaluator to distinguish changes due to the program from changes due to nonprogram factors. The evaluator must focus on outcomes caused by the…