Because of the complex reality of development cooperation, GTZ focuses all of its monitoring and evaluation activities on observing the effects of individual projects. The GTZ effect model shows the effects of project or program contributions at several different levels:

• Use of the contribution: This level describes whether and how the contributions of a project/program are being used by target groups (output)
• Direct benefit: The direct-benefit level describes the effects that are achieved directly as a result of the use of the contribution. The overall goal of the project/program (outcome) is found at this level.
• Indirect benefit: Additional indirect effects include changes leading to more highly aggregated progress in development (impact), which GTZ seeks to encourage through the direct effects of its work.

GTZ measures its results with the help of a system of internal and external monitoring based on the following evaluation criteria, among others:

• Effects (effectiveness): Is the project achieving its goals?
• Project relevance: Are the right things being done?
• Coherence/Complementarity: Are actions being coordinated, i.e., is there a proper division of labor with other partners?
• Efficient use of resources: Are the project’s contributions and effects being achieved efficiently?
• Development-policy effects (impact): Are project and program efforts contributing to achieving overarching goals?
• Sustainability: Are the effects lasting?