Payment By Results In Development Aid: All That Glitters Is Not Gold

by Paul Clist
School of International Development, University of East Anglia, July 2016

29 pp. 73 kB

Payment by Results, where aid is disbursed conditional upon progress against a pre-agreed measure, is becoming increasingly important for various donors. There are great hopes that this innovative instrument will focus attention on ultimate outcomes, and lead to greater aid effectiveness by passing the delivery risk on to recipients. However, there is very little related empirical evidence, and previous attempts to place it on a sure conceptual footing are rare and incomplete. This article collates and synthesises relevant insights from a wide range of sub-fields in economics, providing a rich framework with which to analyse Payment by Results.

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