More than 60 years since USAID launched, the world’s biggest provider of foreign assistance still grapples with securing measurable outcomes from development funding. Scaling a results-based financing approach in its grant-giving approach is a proven and urgent proposition.
At the end of 2023, a groundbreaking investigative report by Devex and The Bureau for Investigative Journalism exposed the shortcomings of USAID’s largest-ever foreign aid contract, the staggering $9.5 billion global health supply chain award. The report unveiled a startling lack of independent evidence supporting the project’s success, with one evaluation bluntly declaring it “unlikely to have any transformative or sustainable effect.”
This revelation mirrors a recurring critique of USAID and the broader U.S. government — a perceived prioritization of financial compliance over performance and results. Reports from USAID’s Office of Inspector General and the White House highlight suboptimal results in over 40% of awards and significant time spent on administrative activities. Against this backdrop, a United Nations report reveals that about 80% of our Sustainable Development Goal targets face challenges in progress, highlighting the urgency in shifting approaches.