Interprets the perception of reality of project beneficiaries of La Paz, Bolivia, and Guayaquil, Ecuador in the context of urban development projects and communicates that perception to host-country managers and Bank officials. Describes communities that served as project sites for the application of participant-observer evaluation. Discusses use of participant-observer evaluation in project areas and other countries where primary responsibility for the approach lay with host-country personnel. Elaborates the participant-observer evaluation method and summarizes its significance both as a project management tool and as a development activity.

3/7/00 M2LMGR