Ideas to Action:

Independent research for global prosperity

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.

 

Close but No Cigar: Paying for Performance Is Not Necessarily COD Aid

When we make presentations on COD AIDat development agencies, we are frequently told: “Oh, we’re already doing that.” The more we investigate, however, the fewer cases we find where agencies are really disbursing funds against independently verified outcomes in a hands-off fashion. We’re tempted to say “close but no cigar.”

It Takes Two to Quango: Does the UK’s Independent Commission for Aid Impact Duplicate or Add Value?

The United Kingdom has been a stalwart funder and innovator in foreign assistance for almost 20 years. In 2011, it created the Independent Commission for Aid Impact (ICAI) to report to Parliament on the country’s growing aid portfolio. ICAI is a QUANGO in Brit-speak – a quasi-public non-governmental organization - with a 4-year mandate which is undergoing review this year. Recently, I took a look at the reports it has produced to see whether the organization is fulfilling its role in holding the country’s overseas development aid programs accountable.  I found one fascinating report which shows what ICAI could be doing and many more reports that made me wonder whether ICAI is duplicating work already within the purview of the agency, Department for International Development (DFID), which accounts for most of the UK’s foreign assistance programs.

Development Is Toast

This week, Owen Barder gave an excellent presentation on Complexity and Development and asked whether development is an “emergent property of a complex adaptive system.” After listening to his talk, I fully agree with this definition. On further reflection, however, I decided that development is more like toast. Yes, white, wheat or rye, crisped up with heat. Don’t you agree? Let me explain.

A Critical Moment for COD Aid or “The Trouble with Targets”

As mentioned in our last post, aid agencies are experimenting with programs that incorporate the main features of COD Aid: paying for outputs and outcomes, giving the recipient greater discretion to spend as they see fit, independent verification, and transparency. Once these results-based programs are up and running, they face a critical test when the first results are reported. In particular, most programs create expectations by setting annual targets and are then judged relative to those targets rather than to their baseline. And this means that even successful programs will be viewed as failures (a point also made in an earlier blog). By refusing to set targets, a results-based program can avoid this pitfall. How is it that targets can create such a problem?

A Critical Moment for COD Aid or “How to Be Patient When It Matters”

An increasing number of aid agencies are experimenting with programs that incorporate the main features of COD Aid: paying for outputs, giving the recipient greater discretion to spend as they see fit, independent verification, and transparency. (See our brief and book for more details). We’ve argued that the design of COD Aid programs can be rather easy, though the quality of the indicators chosen and the verification process are certainly critical to success. We have spent less time talking about what happens once the program is up and running. In particular, what happens when you find out how much progress actually occurred?

Pages

Tags