The Center for Global Development is developing a design for a new form of aid called Cash on Delivery Aid, under which donors would pay for measurable progress on specific outcomes pre-agreed with recipient governments. In education, Cash on Delivery Aid would accelerate progress toward universal primary education by offering a contract to poor countries for a fixed amount of money, for example $200 per additional child completing a quality primary education, to be used as the country chooses. The objective is to assess the effectiveness of development assistance that pays for outcomes rather than inputs. This page includes research, analysis, discussion and reactions to the idea by CGD and external researchers and practitioners.
Cash on Delivery: A New Approach to Foreign Aid Applied to Primary Schooling In this three page note we outline a proposal for a hands-off approach to providing aid. We describe the outlines of an open contract that donors could offer to reward progress in education; any eligible low-income country could sign on to the contract. Testing this approach would allow for systematic analysis of the effects of this new form of aid, on schooling and on local political and other institutions in recipient countries. We intend for this summary outline to encourage discussion of the proposal in the official donor community and among officials, civil society activists and researchers in recipient countries.
Payments for Progress: A Hands-Off Approach to Foreign Aid
Cash on Delivery (or progress-based) Aid was first proposed in this paper by former CGD senior program associate Owen Barder and CGD president Nancy Birdsall. The paper makes the case that this new, less intrusive form of aid would avoid undermining recipient-country institutions, and thus better assist long-term development.
Cash on Delivery Aid for Education: Experiences of Incentive-Based Approaches
In this note, former program coordinator to the president Kate Vyborny overviews a range of other incentive-based approaches in aid, explains how Cash on Delivery Aid differs from them, and outlines how it can learn from these experiences.
Cash on Delivery Aid: Some Comments/Observations
In this discussion note, Maurice Boissiere explores a number of issues Cash on Delivery Aid would face, including whether pre-financing is needed, the data sources on enrollment and learning outcomes in low-income and post-conflict countries, and how to evaluate a pilot.
Where can Cash on Delivery Aid work?
In this note, we briefly describe why we think Cash on Delivery Aid can be tried in a range of different types of countries, including fragile states.
The Aid System: Does 'Mutual Accountability' Encourage Outcomes?
CGD hosted a panel discussion at the 2009 World Bank and IMF Fall Meetings on ways development assistance can help foster, rather than undermine, linkages between governments and their people. Cash on Delivery Aid was discussed as one among several methods for increasing accountability to developing country citizens through development assistance.
Cash on Delivery Aid Feasibility Study in Malawi
In December 2009, Nancy Birdsall, Bill Savedoff and Ayah Mahgoub met with government officials, donor representatives and civil society leaders in Malawi to learn whether and how COD Aid could be offered to support the education sector. The following report described the potential for a COD Aid program in Malawi and suggests next steps for the government and the donors if there is interest in implementing such a program. Cash on Delivery Aid Feasibility Study in Ethiopia
In December 2009, Nancy Birdsall met with government officials and donor representatives in Ethiopia to learn whether and how COD Aid could be offered to support the education sector. The following report described the potential for a COD Aid program in Ethiopia and suggests next steps for the government and the donors if there is interest in implementing such a program.
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