In early December, the U.K. Department for International Development published its Bilateral Development Review, the first of its kind since 2011. The document highlighted several key policies including an increased focus on using the payment by results method. In practical terms, this means that DfID’s partners will only receive their share of funding after achieving specific program milestones. Between April 2015 and March 2016, a total of 748 million pounds ($947 million), or 74 percent of all new centrally-produced contracts was paid out through this method.
While this measure is seen as a means to improve the efficiency and overall performance of implementing partners by incentivizing the achievement of program objectives, many small and medium-sized organizations have voiced their concerns, stating that they lack the capacity to finance their initiatives upfront without DfID’s support.
In the same report, DfID also stated that it will depart from providing general budget support in favor of more targeted financing. As the U.K. aid agency gears up for the next chapter in providing development assistance, it is not unlikely that there will be more shifts in the way it delivers aid.