This is the second note in a monthlyseries on government monitoring and evaluation (M&E)systems led by the PREM Poverty Reduction and Equity Groupunder the guidance of Jaime Saavedra, Gladys Lopez-Acevedo,and Keith Mackay, with contributions from several World Bankcolleagues. The main purpose of this series is to synthesizeexisting knowledge about M&E systems and to document newknowledge on M&E systems that may not yet be wellunderstood. The series targets World Bank, donor staff whois working to support client governments in strengtheningtheir M&E systems, as well as government officialsinterested in learning about the uses and benefits ofM&E and in adopting a more systematic approach towardM&E in their governments.