Results-Based Aid: Potential and Limits of an Innovative Modality in Development Cooperation

International Development Policy, 6.1 (2014)

15 Pages Posted: 15 May 2014

See all articles by Stephan Klingebiel

Stephan Klingebiel

German Development Institute; Stanford University; University of Marburg

Heiner Janus

German Development Institute / Deutsches Institut für Entwicklungspolitik (DIE) ; University of Manchester - Global Development Institute

Date Written: May 12, 2014

Abstract

Results-based aid aims to identify outputs or outcomes that can be measured and quantified – that is, results that can be directly linked to development activities. A contract between the donor and partner country stipulates that for every incremental success a set amount ('reward') will be paid. So far, experience of such aid programmes in practice remains limited. Sometimes they are a refinement of performance-based budget supports, but in other cases it has been suggested to incentivise single indicators (i.e., pay per pupil completing school). While this concept can be promising in theory, its practical implementation might turn out to be difficult. For instance, there is a risk of creating adverse incentives because all available resources might be focused on achieving just the one indicator to the detriment of other development objectives.

Keywords: official development assistance (ODA), international cooperation, aid effectiveness, multilateral cooperation, transparency and accountability, bilateral cooperation, results approaches

JEL Classification: O1, O2

Suggested Citation

Klingebiel, Stephan and Janus, Heiner, Results-Based Aid: Potential and Limits of an Innovative Modality in Development Cooperation (May 12, 2014). International Development Policy, 6.1 (2014), Available at SSRN: https://ssrn.com/abstract=2436625

Stephan Klingebiel (Contact Author)

German Development Institute ( email )

Tulpenfeld 6
Bonn, 53113
Germany

Stanford University ( email )

Stanford, CA 94305
United States

University of Marburg ( email )

Universitätsstrasse 24
D-35032 Marburg, D-35032
Germany

Heiner Janus

German Development Institute / Deutsches Institut für Entwicklungspolitik (DIE) ( email )

Tulpenfeld 6
Bonn, 53113
Germany

University of Manchester - Global Development Institute ( email )

Oxford Road
Manchester, M13 9PL
United Kingdom

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