This paper assesses the challenges of applying COD Aid in the health sector. After clarifying how COD Aid differs from results-based financing approaches, the paper presents four key characteristics for designing a successful agreement. It discusses features of the health sector and foreign aid flows to health that need to be considered when designing a successful COD Aid agreement for this sector.
A new wave of development programs that explicitly use incentives to achieve their aims is under way.They are part of a trend, accelerating in recent years, to disburse development assistance against specific and measurable outputs or outcomes. With a proliferation of new ideas under names such as “payments for performance,” “output-based aid,” and “results based financing,” it is easy to lose sight of basic underlying similarities in these approaches and to miss some significant differences.
Independent impact evaluation is crucial to determine whether development interventions are effective; however, surprisingly few of these studies were conducted until recently.
The Health Systems Funding Platform: Resolving Tensions between the Aid and Development Effectiveness Agendas - Working Paper 258
This paper briefly assesses the Health Systems Funding Platform and finds that its progress differs little from prior initiatives, although it does present an opportunity to make global health aid more effective.