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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.

 

Memo to Jim Kim: Please Follow Results, Not Money

One of the biggest hopes people expressed about Jim Kim’s nomination to become president of the World Bank was that he would bring a fresh perspective, focused on achieving results, rather than reinforce the institution’s bureaucratic machinery. Unfortunately, President Kim’s recent remarks at the Center for Foreign Relations suggest that bureaucratic inertia is winning.

How Well Are Performance-Based Payments Working? Lessons from Guyana

What if international development finance paid for outcomes, like children educated or diseases avoided, rather than inputs like classrooms built or medicines procured?  That’s the premise of CGD’s longstanding work on Cash-on-Delivery Aid.  By paying only for the verified progress on measured outcomes, donors are assured of value for money, and recipients have the flexibility and incentive to innovate.  This idea is taking hold in educationhealth, and other sectors.

Do Trees Grow on Money? The Problem of Attribution

How can donors know if their aid is making a difference? This question is tougher than it seems. Attributing results to donor inputs seems straightforward if the donor pays for progress on a measurable outcome, as CGD has proposed for Cash on Delivery Aid (COD Aid). If the desired results are achieved—say an increase above an agreed baseline in the number of kids completing primary school and taking a competency test—then the program has demonstrated value for money, no?