Cash on Delivery: A New Approach to Foreign Aid

Cash on Delivery: A New Approach to Foreign Aid

In this two-minute clip from 2010, Ayah Mahgoub, former CGD special assistant to the president, discusses Cash on Delivery  Aid (COD Aid), a CGD initiative for making aid more effective. COD Aid builds on existing initiatives to disburse aid against results but links payments more directly to a single, agreed-upon outcome. The approach gives recipients the autonomy to achieve progress however they see fit and ensures greater transparency. Mahgoub explains how this hands-off approach creates incentives for countries to discover what really works and shows funders that their money is making a difference. The development community has already shown a strong interest in applying COD aid to health, education, and water sanitation. Learn more about the COD Aid initiative here.