Advisory and capacity development interventions, often interchangeably used with terms such as capacity building, nonlending operations, technical assistance, or technical cooperation, aim to improve skills, knowledge, and systems. They are integral to effective and sustainable development because they turn financing into implementable reforms and lasting institutional capabilities. Despite their significance, these activities are often underevaluated, and their impacts remain insufficiently understood. The challenge is primarily methodological: systematically evidencing behavior change and assessing effectiveness in capacity development interventions, compared with other types of financial interventions, is stymied by several constraints, from conceptualization to operationalization and measurement.

Using the case of the International Finance Corporation’s advisory services self-evaluation and the Independent Evaluation Group’s independent validation work, this paper reflects on the methodological challenges of self-evaluating advisory services projects, especially assessing their effectiveness and the quality of the advisory work completed in the project setting. It proposes ways to address these challenges, ultimately aiming to enhance organizational learning. The paper also provides in-depth insights into the significant institutional arrangements needed for conducting this type of self-assessment and independent validation. By reflecting on the Independent Evaluation Group’s experience, the paper aims to contribute to best practices for evaluating capacity development interventions and to support the continuous improvement of evaluation methodologies.