results based aid a new approach to delivering aid...results based aid results based financing...
TRANSCRIPT
Content
1. Results, Results, Results
2. One way to get results - Payment by
Results
1. DFID Definition
2. DFID action
3. Examples of practice
4. Evaluation and learning
3. Not just results but value for money
Results, Results, Results
• Allocations
• Business Processes – decisions, reviews
• Evidence and Evaluation
• Data – results frameworks
• Scrutiny
• Innovative mechanisms
Context: Linking payments
to performance
DFID is increasingly moving away from upfront input financing and linking payments to
results and performance.
e.gs.
• Performance financing (performance tranche)
• Procurement reform
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Input Output Outcome
Performance
based financing
Payment by
results
Traditional
“input”
financing
What is PBR?
1. Payments based on pre-agreed results. Paying for development outcomes, not inputs
2. Recipient discretion on how to achieve results.
3. Independent verification of results as the trigger for disbursement.
=
Recipient Funder
Negotiate a MoU/contract detailing: indicators of results, payment structure,
measurement of unit price
Robust independent verification of results
Shared desired outcome
Disbursement of funds Unit price x results target
achieved = payment £
Publicly disseminate results
Imp
leme
ntatio
n
Inputs
Processes
Innovation
Publicly disseminate contract
Incen
tive
TYPE
WHO
CURRENT
e.g.s
Types of PBR:
DFID pilots
DFID distinguishes different types of PBR depending on who we transfer risk to.
Results based
aid
Results based
financing Development
impact
bonds
Partner governments Service providers Investors
NEWER NEWEST
Design stage Uganda Health £8m
Clean energy fund £30m
Health fund (WB) £110m
Infra’ fund (WB) £37m
Girls’ Education Fund £30m
Ethiopia Education £30m
Rwanda Education
SBS
£9m
Agree payment structure (unit price)
Text
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B
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Agree indicator of results: • Number of students sitting an exam • Number of students passing exam
Partner
Funder
Aligned development result: Improved lower secondary completion
Independent verification of
results
Disbursement of funds:
Unit price x number of
students sitting exam =
payment £
Time
PBR in practice: Education pilot Ethiopia
Publish and announce MoU
Emrg Non-emrg Emrg Non-emrg
Boys £75 £50 £75 £50
Girls £100 £85 £100 £85
Passer Sitter
Where we are
now!
Agree payment structure (unit price)
Text
bo
oks
in s
cho
ols
B
uild
ing
new
sch
oo
ls
Pro
vid
e co
ach
ing
for
teac
her
s
Agree indicator of results: • Number of students sitting an exam
Partner
Funder
Aligned development result: Improved lower secondary completion
Independent verification of
results
Disbursement of funds:
Unit price x number of
students sitting exam =
payment £
Time
PBR in practice: Education pilot Rwanda
Publish and announce MoU
Where we are
now!
Grade P6 S3 S6
Payment per additional child £30 £100 £30
Additional payment 2014/15 £10 £10 £10
Learning and Evaluation
• Current evidence base is too weak for general conclusions on efficacy of PBR;
more robust, comprehensive and wide ranging testing and evaluation of PBR is
needed.
• DFID is engaged in building the evidence of whether and how PBR works.
• Good spread of PBR pilots developing, across delivery channels, sectors,
countries and various types of PBR.
• Each of our pilots is independently evaluated.
• Evaluations and lessons learnt in design and implementation will provide DFID
with evidence to take informed decisions about how to progress PBR in the
future.
• DFID to develop PBR strategy by Spring 2014.
Evaluation and Learning
Key findings from recent DFID funded synthesis study on evaluation and PBR:
• Start by identifying questions, then consider methodology.
• Most important question might be identifying mechanisms and sets of
circumstances under which PBR approaches may make a positive
difference
• Range of other important questions about PBR identified, e.g. cost
effectiveness and comparison with other potential approaches and
strategies, appropriate size and nature of incentives, exploration of
unintended effects and how they can be avoided/ minimised.
• Need to explore and describe process by which PBR implemented in
practice and reasons why changes from original may be needed.
Final thoughts - not just results – value
for money
• Evidence
• Metrics
• Comparable data
• Understanding cost as well as results
• Incentives