This paper illustrates the tradeoff between country ownership and funders’ priorities with a formal model in which aid is governed by a contract to produce a jointly desired outcome. The model generalizes the Principal-Agent approaches for studying aid which treat countries as having multiple objectives.
In many low- and middle-income countries, lifesaving health products are either unavailable or beyond the reach of the people who need them most.
Imagining the Alternative Worlds of 2030: Policy Implications for the Future of Global Health Procurement
Drawing on a range of political, economic, and social trends, this paper envisions how the global landscape might change between now and 2030, with a focus on the implications for global health, particularly the procurement of health products.
Competing or Complementary Strategies? Protecting Indigenous Rights and Paying to Conserve Forests - Working Paper 490
In 2007, the UN General Assembly adopted the Declaration on the Rights of Indigenous Peoples and the UNFCCC endorsed the Bali Action Plan to pay for reductions in tropical deforestation. This paper reviews the history of efforts to protect indigenous rights and to pay for conserving forests and analyzes how they might be competing or complementary strategies.
Good Quality Evaluations for Good Policy: Findings and Recommendations from Aid Agency Evaluations in Global Health
Evaluations are key to learning and accountability yet their usefulness depends on the quality of their evidence and analysis. This brief summarizes the key findings of a CGD Working Paper that assessed the quality of aid agency evaluations in global health. By looking at a representative sample of evaluations—both impact and performance evaluations—from major health funders, the study authors developed 10 recommendations to improve the quality of such evaluations and, consequently, increase their usefulness.
Evaluating Evaluations: Assessing the Quality of Aid Agency Evaluations in Global Health - Working Paper 461
We assessed the methodological quality of global health program evaluations from five major funders between 2009 and 2014. We found that most evaluations did not meet social science methodological standards in terms of relevance, validity, and reliability. Nevertheless, good quality evaluations made it possible to identify ten recommendations for improving evaluations, including a robust finding that early planning is associated with better quality.
Children in developing countries get lots of schooling, but they are not necessarily learning. To address this, countries need new forms of feedback, experimentation, and financing that conventional aid is ill-suited to provide. This paper reviews experiences with an unconventional aid modality—paying for results—as it could apply to learning. The paper explains how such a program could be implemented and accelerate institutional changes needed to improve student learning.
Energy is critical to human welfare, yet energy consumption in developing countries is extremely low relative to modern living standards. Conventional aid programs have invested in energy production with some success but also with many notable failures. This paper discusses how a distinctive approach to development aid—disbursing funds against improved outcomes—could make aid more effective in the energy sector. In particular, it explores the use of Cash on Delivery Aid (COD Aid) to resolve perennial difficulties encountered by conventional aid programs in energy sector development.
Attention presidential transition teams: the Rethinking US Development Policy team at the Center for Global Development strongly urges you to include these three big ideas in your first year budget submission to Congress and pursue these three smart reforms during your first year.
Global health action has been remarkably successful at saving lives and preventing illness in many of the world’s poorest countries. This is a key reason that funding for global health initiatives has increased in the last twenty years. Nevertheless, financial support is periodically jeopardized when scandals erupt over allegations of corruption, sometimes halting health programs altogether.
Corruption is an obstacle to social and economic progress in developing countries yet we still know very little about the effectiveness of anti-corruption efforts and their impact on development impact. This essay looks at 25 years of efforts by foreign aid agencies to combat corruption and proposes a new strategy which could leverage existing approaches by directly incorporating information on development results.
How the Green Climate Fund Could Promote REDD+ through a Cash on Delivery Instrument: Issues and Options
Climate change will have profound effects on development, poverty, health, and well-being in coming years. Rejuvenated by the recent Paris agreements, efforts to channel the international funding commitments need channels for cost-effective mitigation.
While global development is about much more than aid, US foreign assistance is, and will remain, one of the most visible tools for US development policy in many countries. The US government spends less than 1 percent of its annual budget — about $23 billion — on nonmilitary foreign assistance across the globe. These programs have consistently come under fire for failing to achieve measurable and sustainable results, ignoring local priorities and contexts, perpetuating bureaucratic inefficiencies and inflexibility, and repeating mistakes over time. A paradigm shift within US aid agencies is needed. In this brief, we outline concrete proposals that would address many of the traditional shortcomings of US foreign aid approaches.
There are 20 pages covering the Addis Ababa Action Agenda. And while they are inevitably bubble-wrapped in diplo-speak and hat-tipping, there is a solid package of proposals nestled within. They cover domestic public finance, private finance, international public finance, trade, debt, technology, data and systemic issues. Amongst many other things, the Agenda calls for more tax and better tax (less regressive, more focused on pollution and tobacco). And it is long and specific on base erosion, tax evasion and competition and tax cooperation. It calls for financial inclusion and cheaper remittances. The draft discusses blended finance and a larger role for market-based instruments to support infrastructure rollout, as well as a new measure of “Total Official Support for Sustainable Development.” It calls for Multilateral Development Bank reform including new graduation criteria and scaling up. And it suggests a global compact to guarantee a universal package of basic social services and a second compact covering infrastructure. Finally, the draft has a good section on technology including the need for public finance and flexibility on intellectual property rights.
The single most cost-effective way to save lives in developing countries is in the hands of developing countries themselves: raising tobacco taxes. In fact, raising tobacco taxes is better than cost-effective. It saves lives while increasing revenues and saving poor households money when their members quit smoking.
In 2010, Norway and Indonesia signed a US$1 billion performance agreement to reduce greenhouse gas emission from deforestation. The experience holds lessons for international cooperation in addressing climate change and other global challenges.
Does Results-Based Aid Change Anything? Pecuniary Interests, Attention, Accountability and Discretion in Four Case Studies
Results-based aid (RBA) is a form of foreign assistance in which one government disburses funds to another for achieving an outcome. This paper distinguishes four different theories used to justify RBA programs and analyzes four case studies – from GAVI, the Amazon Fund, Ethiopian Secondary Education and Salud Mesoamérica.
This paper articulates how development assistance can promote program evaluation generally, and impact evaluation specifically, as a contribution to good governance.