CGD Policy Blogs
Development agencies are increasingly interested in making aid more transparent, stakeholder-led, and effective by expanding the use of payment by results (PbR) — rewarding those implementing projects on the basis of results delivered instead of paying for inputs. For payment by results to work, you have to get a lot of things right. It has to be for the right kind of programme targeting the right results, properly measured and rewarded in the right way. These issues, and more, are laid out in Stefan Dercon and Paul Clist’s 12 principles for payment by results (PDF).
Administrators in colonial-era Delhi, the story goes, had a problem. The growing capital city bordered agricultural land, bringing more people into occasionally deadly contact with a subcontinental rogues gallery that included cobras and banded kraits.