Delivering Basic Services and Results in Fragile States
This session looked at the use of output-based aid (OBA) and results-based financing (RBF) in fragile and conflict states; examining experiences in West Bank/Gaza, Nepal and Indonesia. OBA and RBF use innovative financing mechanisms to provide basic services -- like solid waste management, water, transportation and electricity – to the very poor. But unlike traditional aid, OBA and RBF link funding to results.
“We want to help governments get better results for their systems,” said Dominic Patella, Transport and ICT Specialist at the World Bank Group. “Tethering money to results is a very powerful mechanism. It’s enough to improve behaviors.”
The ability to deliver tangible physical results, such as electricity or water, is a confidence building mechanism, particularly in post-conflict countries with new or emerging government institutions, noted Catherine Commander O’Farrell, GPOBA’s Lead Infrastructure Specialist.
Marisela Montoliu Muñoz, Director for Urban, Rural and Disaster Risk Management in the World Bank’s Social, Urban, Rural and Resilience Global Practice (GP SURR), moderated the discussion. Joining Patella and O’Farrell on the panel were Lead Social Development Specialist Nina Bhatt and Senior Economist Abdu Muwonge, both of the World Bank’s GPSURR.