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Views from the Center

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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.”

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?

P4R: Looking to the Pilot Phase

This is a joint post with Rita Perakis.

After many stages of drafting, debates, and consultations, the World Bank´s proposed results-based financing instrument, Program-for-Results is going for approval to the Bank´s Board on January 24. The latest draft of the policy can be found here; we´re pleased to see that Bank staff listened to comments at a CGD roundtable and many other consultation meetings and incorporated changes to previous drafts. CGD hosted a final discussion of P4R on Thursday January 19, with a presentation by World Bank VP for operations, Joachim von Amsberg, and a panel that included Anne Perrault of the Center for International Environmental Law, Marta Garcia Jauregui, who represents Spain, Mexico and several Latin American countries on the World Bank board, and CGD president Nancy Birdsall (see event video here).

COD Aid Called Radical and Refreshing

In a refreshing discussion of COD Aid that’s what Andrew Rogerson calls our idea.  Rogerson is an experienced player in aid delivery, having been at DfID and the OECD/Development Assistance Committee.  His smart summary covers the latest news, including a pilot of COD Aid for Ethiopia being planned at DfID.  It is smartly presented (as in COD implies for the recipient “no free lunch”), with an eye on the practical questions sponsors of COD Aid face.

On Not Being Cavalier about Results

The Guardian’s Madeleine Bunting recently slammed Andrew Mitchell’s (Secretary of State for International Development, UK) commitment to results-based aid.  Here’s what I had to say about her somewhat cavalier critique:  (See also Mitchell’s response, where my comment is posted.)

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