New Diagnostic Tool for Results-based Financing

October 31, 2018|Feature Stories

Evidence shows that results-based financing has a significant impact – saving lives and expanding access to quality, essential health services for the poorest women and children in developing countries”. Jim Yong Kim, World Bank Group President

Using our guide for effective results-based financing approaches

Results Based Financing (RBF) can be broadly defined as a financing arrangement in which payments are contingent upon the achievement of pre-defined and verified results.  A variety of RBF instruments exist to address a range of challenges, from improving access to basic services like water and energy for low-income communities, to decreasing unemployment and improving education outcomes.

The use of RBF approaches within the international development finance community is growing rapidly. In the last decade alone, at least $25 billion of development spending has been tied to results, an increase from just a few billion the decade before.

Despite the increase in the use of RBF approaches, the practice in certain thematic areas remains emergent and insufficiently documented. With an assortment of RBF instruments available, it is important to understand how the principles and requirements of the different approaches vary in their application.

Commissioned by GPOBA and written by Instiglio, the report serves as a guide and diagnostic tool for practitioners interested in using RBF to meet their development objectives, helping funders to understand where and how they can best use different RBF instruments to deliver impact. It draws on lessons and examples of RBF projects in varied contexts and sectors implemented around the world. 

The report specifically looks at questions that are critical to building a mature practice of RBF, including:

  • In what contexts does RBF work best and which instruments are most appropriate?
  • What does it take to enable the use of RBF?
  • How should RBF be designed to maximize impact?
  • How can RBF approaches be strengthened and scaled over time?

Read more here: Guidebook for Effective Results-Based Financing Approaches

Access the RBF Database noted in the Guidebook.