Results-based financing, cash on delivery, payment by results — whatever you prefer to call it, the movement behind this type of financing is only growing.
It ties funding to specific performance or results that donors and implementers typically agree upon in advance. In many cases, funding — or incentives — is contingent on meeting those goals. For example, instead of paying for a hospital to be built, or for health professionals to be trained, the donor would fund a reduction in child stunting or maternal mortality rates. Instead of shelling out cash for new schools, a donor would pay for improved literacy rates.
Billions of dollars have been tied to results for more than a decade now.
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About the author
Adva Saldinger@AdvaSal
Adva Saldinger is a Senior Reporter at Devex where she covers development finance, as well as U.S. foreign aid policy. Adva explores the role the private sector and private capital play in development and authors the weekly Devex Invested newsletter bringing the latest news on the role of business and finance in addressing global challenges. A journalist with more than 10 years of experience, she has worked at several newspapers in the U.S. and lived in both Ghana and South Africa.
