Results-Based Financing

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Results-based financing is a shift in how donors approach aid. Rather than financing inputs and activities, donors pay for milestones completed or development outcomes achieved. For example, CGD has proposed a model for “Cash on Delivery,” where donors pay for measurable and verifiable progress on specific outcomes, such as $100 dollars for every child who completes primary school and takes a test. CGD also proposed the Development Impact Bond (DIB), which offers a unique model for harnessing private investment in pursuit of development outcomes.