Every Dollar Counts: How Global AIDS Donors Can Better Link Funding Decisions to Performance

Nandini Oomman, David Wendt, and Christina Droggitis

04/13/2010

Performance-based funding

Billions of dollars have been allocated to fight HIV/AIDS in poor countries over the past decade, yet less than half of those requiring treatment receive it, and for every two people put on treatment, five more become infected. Donors have to do more with available funds

One way to improve the effectiveness of HIV/AIDS programs is to tie funding decisions to performance. Performance-based funding rewards effective programs and gives incentives for poor performers to improve, but only the Global Fund systematically bases funding decisions on past performance,although in practice it is often hampered by poor information. Both PEPFAR and the World Bank use assessments of past performance to inform decisions, but the data and decision processes are not shared with stakeholders, and program performance is often treated as a secondary criterion. Now is the time to link funding decisions to performance.

 

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