Results-Based Aid - Revision history

Wiki Gardener: Wiki Gardener moved page Results-based aid to Results-Based Aid without leaving a redirect

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Wiki Gardener moved page Results-based aid to Results-Based Aid without leaving a redirect

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Oliver Knight: /* Limitations */ Formatting correction

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Limitations: Formatting correction

Oliver Knight: /* Limitations */ Addition of a reference to NORRAG

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Limitations: Addition of a reference to NORRAG

Wiki Gardener at 15:23, 18 June 2012

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Wiki Gardener: moved Results-based aid to Results-based Aid

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moved Results-based aid to Results-based Aid

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	'''Results-based aid''' is a form of [http://en.wikipedia.org/wiki/Payment_by_Results Payment by Results] and generally refers to the linking of [http://en.wikipedia.org/wiki/Official_development_assistance official development assistance] (from bilateral or multilateral development agencies to developing country governments) to verifiable results in the form of outcomes at the national level. For example, a results-based aid agreement might have payments linked to performance against one or more outcome indicators, or the successful implementation of a government program. Possible outcomes might include the number of people with a defined improvement in access to energy.		'''Results-based aid''' is a form of [http://en.wikipedia.org/wiki/Payment_by_Results Payment by Results] and generally refers to the linking of [http://en.wikipedia.org/wiki/Official_development_assistance official development assistance] (from bilateral or multilateral development agencies to developing country governments) to verifiable results in the form of outcomes at the national level. For example, a results-based aid agreement might have payments linked to performance against one or more outcome indicators, or the successful implementation of a government program. Possible outcomes might include the number of people with a defined improvement in access to energy.
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		+	Results-based aid is distinct from [[Results-based financing\|Results-based financing]] which applies at a level below and will be concerned with outputs (such as electricity connections) rather than outcomes (such as number of households using electricity).

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	= Limitations<br/> =		= Limitations<br/> =

−	Criticisms of results-based aid include the onus on the recipient country government to pre-finance the delivery of outcomes, the lack of donor control over the use of disbursed funds (particularly under the COD Aid approach), the risk of incentivizing the delivery of a single outcome at the expense of others (and the associated risk of perverse outcomes), and a lack of data in some sectors<ref>http://www.norrag.org/issues/article/1506/en/results-based-aid--a-new-aid-label-or-potential-for-more-impact.html ~~Stephan Klingebiel. 2012. Results Based Aid – A New Aid Label or Potential for More Impact.~~ Network for Policy Research, Review and Advice on Education and Training (NORRAG), Geneva.</ref>.	+	Criticisms of results-based aid include the onus on the recipient country government to pre-finance the delivery of outcomes, the lack of donor control over the use of disbursed funds (particularly under the COD Aid approach), the risk of incentivizing the delivery of a single outcome at the expense of others (and the associated risk of perverse outcomes), and a lack of data in some sectors<ref>Stephan Klingebiel. 2012. Results Based Aid – A New Aid Label or Potential for More Impact. Accessible at the [http://www.norrag.org/issues/article/1506/en/results-based-aid--a-new-aid-label-or-potential-for-more-impact.html Network for Policy Research, Review and Advice on Education and Training (NORRAG)], Geneva. </ref>.

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	= Limitations<br/> =		= Limitations<br/> =

−	Criticisms of results-based aid include the onus on the recipient country government to pre-finance the delivery of outcomes, the lack of donor control over the use of disbursed funds (particularly under the COD Aid approach), the risk of incentivizing the delivery of a single outcome at the expense of others (and the associated risk of perverse outcomes), and ~~the potentially high costs~~ of ~~monitoring~~ and ~~verification~~.	+	Criticisms of results-based aid include the onus on the recipient country government to pre-finance the delivery of outcomes, the lack of donor control over the use of disbursed funds (particularly under the COD Aid approach), the risk of incentivizing the delivery of a single outcome at the expense of others (and the associated risk of perverse outcomes), and a lack of data in some sectors<ref>http://www.norrag.org/issues/article/1506/en/results-based-aid--a-new-aid-label-or-potential-for-more-impact.html Stephan Klingebiel. 2012. Results Based Aid – A New Aid Label or Potential for More Impact. Network for Policy Research, Review and Advice on Education and Training (NORRAG), Geneva.</ref>.
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 '''Results-based aid''' is a form of [[Payment by Results]] and generally refers to the linking of [http://en.wikipedia.org/wiki/Official_development_assistance official development assistance] (from bilateral or multilateral development agencies to developing country governments) to verifiable results in the form of outcomes at the national level. For example, a results-based aid agreement might have payments linked to performance against one or more outcome indicators, or the successful implementation of a government program. Possible outcomes might include the number of people with a defined improvement in access to energy.
-==Definition==
 Results-based aid can be characecterized by the following principles:
 #Disbursement of funds is contingent on the delivery of pre-determined results in the form of national-level outcomes.
 #There is recipient discretion over how results are achieved.
 #Independent verification acts as the trigger for disbursement.
 Examples of results-based aid instruments include:
 *Cash-on-Delivery Aid (COD Aid), a modality proposed by the Center for Global Development<ref>Nancy Birdsall and William D. Savedoff. 2010. Cash on Delivery: A New Approach to Foreign Aid. Center for Global Development, Washington DC</ref> whereby donors would pay for development outcomes against (ideally) a single indicator, with minimal involvement in how the target is met;
 *Certain forms of climate finance, such as payments under the UN program for [http://www.un-redd.org/ Reducing Emissions from Deforestation and Forest Degradation] (REDD+), and those being proposed under [http://www.osloenergyforall2011.no/pop.cfm?FuseAction=Doc&pAction=View&pDocumentId=31145 Energy+].
 There is some development experience with results-based aid, such as variable or performance-related tranche payments under [http://digitalmedia.worldbank.org/projectsandops/lendingtools.htm#devt Development Policy Loans] or the [http://www.gavialliance.org/support/iss/ Immunization Services Support] program of the GAVI Alliance<ref>Mark Pearson, Martin Johnson, and Robin Ellison. 2010. Review of major Results Based Aid (RBA) and Results Based Financing (RBF) schemes. DFID Human Development Resource Centre, London</ref>, but energy sector experience is very limited.
-==Limitations==
 Criticisms of results-based aid include the onus on the recipient country government to pre-finance the delivery of outcomes, the lack of donor control over the use of disbursed funds (particularly under the COD Aid approach), the risk of incentivizing the delivery of a single outcome at the expense of others (and the associated risk of perverse outcomes), and the potentially high costs of monitoring and verification.
-==References==
 <references />
 [[Category:Financing,_promotion_schemes_and_subsidies]]

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