Bonn: German Development Institute / Deutsches Institut für Entwicklungspolitik (DIE)
Price: 6 €
The debate on results-based aid (RBA) differs from debates so far in as much as in practice, aid has been mainly inputs and progress-oriented. RBA aims to identify outputs or outcomes that can be measured and quantified, i.e. results that can be directly linked to development activities. The key feature is the link between the aid intervention and strong incentives to encourage results. The main innovation of RBA is based on the introduction of a new conditionality concept: a contract between both partners that defines incentives to produce measurable results. If these results are achieved, the aid disbursement will be released. The potential benefits of RBA depend very much on the specific approach and design.