Ideas to Action:

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Views from the Center

CGD experts offer ideas and analysis to improve international development policy. Also check out our Global Health blog and US Development Policy blog.

 

Piloting COD Aid: Results Are Coming into Focus

It would be strange to try learning how to play music without listening to musicians. Similarly, learning about results-based aid programs requires listening to people who design and implement them. That is just what we did last week in a set of workshops about implementing programs that pay for results – programs which apply some or all of the principles that we’ve discussed here at the Center as Cash on Delivery Aid. As a result of discussing real experiences, we discovered that some of the challenges are quite different than we had anticipated while a number of common concerns have simply failed to materialize.

What Comes after the Tea Party?

The Tea Party movement in the United States had a big impact on this year’s mid-term election. The energy it channeled can be seen as a pendulum shift from the progressive winds that were blowing in 2008. So what comes next?

Linking Aid to Results: Why Are Some Development Workers Anxious? (Guest post by Owen Barder)

I am pleased to share with our readers at Owen’s request this discussion of Cash on Delivery Aid, which appeared yesterday on his blog, Owen Abroad.

Linking Aid to Results: Why Are Some Development Workers Anxious?

By Owen Barder

The Center for Global Development is working on an idea which they call Cash on Delivery aid, in which donors make a binding commitment to developing country governments to provide aid according to the outputs that the government delivers. I think this is a good idea in principle, and hope that it can be tested to see whether and how it could work in practice. The UK Conservative party have said in their Green Paper that if they are elected they will use Cash on Delivery to link aid to results.

Linking aid more closely to results is attractive from many different perspectives. My own view is that linking aid directly to results will help to change the politics of aid for donors. Many of the most egregiously ineffective behaviours in aid are a direct result of donors’ (very proper) need to show to their taxpayers how money has been used. Because traditional aid is not directly linked to results, donors end up focusing on inputs and micromanaging how aid is spent instead, with all the obvious consequences for transactions costs, poor alignment with developing countries systems and priorities and lack of harmonisation. If we could link aid more directly to results, I think donors will be freed from many of the political pressures they currently face to deliver aid badly; and it would be politically easier to defend large increases in aid budgets.

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