Problem diagnosis as a Precursor to Effective Program Design: A detailed understanding of the problem to be addressed is necessary (for example, a shortage of technical skills in the labor market), leading to an investment that addresses its identified root causes (for example, weak links between training and the private sector, low teacher capacity, lack of financing, inadequate equipment, etc.). Moreover, even in cases where problem diagnosis is exhaustive, documenting the identified problem and a detailed theory of change is a prerequisite to thorough monitoring and evaluation of an investment.
In developing subsequent compacts, MCC has implemented better problem diagnosis processes, including the Constraints Analysis, which identifies the binding constraints to economic growth, and detailed root cause analysis. In the case of the TVET sector, a root cause analysis should include a comprehensive institutional assessment, a credible approach to identifying skills gaps in the labor market, and an understanding of the current/potential role of the private sector in TVET provision. Evaluation results of recent/ongoing TVET projects are pending in Georgia II, Morocco II, and Cote d’Ivoire.