IDEAS home Printed from https://ideas.repec.org/a/bla/devpol/v33y2015i3p313-323.html
   My bibliography  Save this article

Performance-Based Aid: Why It Will Probably Not Meet Its Promises

Author

Listed:
  • Elisabeth Paul

Abstract

type="main" xml:id="dpr12115-abs-0001"> Performance-based aid (PBA) is increasingly advocated as a way to improve the effectiveness of development aid by resolving incentive issues inherent in aid relationships, and some donors use it together with performance-based financing arrangements within partner countries. Expectations from PBA are high, but, while its rationale may look appealing, it is based on a restrictive model and is flawed when taking account of the real-world context. A number of problems associated with PBA have already been observed, and its appropriateness to provide incentives all along the chain from recipient governments to those who are supposed to produce results is questionable. Thus believing that PBA can have a mechanistic trickle-down incentive effect seems illusory.

Suggested Citation

  • Elisabeth Paul, 2015. "Performance-Based Aid: Why It Will Probably Not Meet Its Promises," Development Policy Review, Overseas Development Institute, vol. 33(3), pages 313-323, May.
    • Handle: RePEc:bla:devpol:v:33:y:2015:i:3:p:313-323
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1111/dpr.2015.33.issue-3
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Niels Keijzer, 2016. "Open Data on a Closed Shop? Assessing the potential of transparency initiatives with a focus on efforts to strengthen capacity development support," Development Policy Review, Overseas Development Institute, vol. 34(1), pages 83-100, January.
    2. Heidi Gjertsen & Theodore Groves & David A Miller & Eduard Niesten & Dale Squires & Joel Watson, 2021. "Conservation Agreements: Relational Contracts with Endogenous Monitoring [“Toward a Theory of Discounted Repeated Games with Imperfect Monitoring]," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 37(1), pages 1-40.
    3. Heidi Gjertsen & Theodore Groves & David A. Miller & Eduard Niesten & Dale Squires & Joel Watson, 2014. "A Contract-theoretic Model of Conservation Agreements," World Scientific Book Chapters, in: Kaddour Hadri & William Mikhail (ed.), Econometric Methods and Their Applications in Finance, Macro and Related Fields, chapter 15, pages 425-455, World Scientific Publishing Co. Pte. Ltd..
    4. Janus, Heiner & Keijzer, Niels, 2015. "Big results now? Emerging lessons from results-based aid in Tanzania," IDOS Discussion Papers 4/2015, German Institute of Development and Sustainability (IDOS).
    5. Rudolph, Alexandra, 2017. "The concept of SDG-sensitive development cooperation: implications for OECD-DAC members," IDOS Discussion Papers 1/2017, German Institute of Development and Sustainability (IDOS).
    6. Caryl Feldacker & Aaron F Bochner & Amy Herman-Roloff & Marrianne Holec & Vernon Murenje & Abby Stepaniak & Sinokuthemba Xaba & Mufata Tshimanga & Vuyelwa Chitimbire & Shingirai Makaure & Joseph Hove , 2017. "Is it all about the money? A qualitative exploration of the effects of performance-based financial incentives on Zimbabwe's voluntary male medical circumcision program," PLOS ONE, Public Library of Science, vol. 12(3), pages 1-15, March.
    7. Gallemore, Caleb & Jespersen, Kristjan, 2016. "Transnational Markets for Sustainable Development Governance: The Case of REDD+," World Development, Elsevier, vol. 86(C), pages 79-94.
    8. Matthew Dornan, 2017. "How new is the ‘new’ conditionality? Recipient perspectives on aid, country ownership and policy reform," Development Policy Review, Overseas Development Institute, vol. 35, pages 46-63, July.
    9. Correa, Juliano & Cisneros, Elías & Börner, Jan & Pfaff, Alexander & Costa, Marcelo & Rajão, Raoni, 2020. "Evaluating REDD+ at subnational level: Amazon fund impacts in Alta Floresta, Brazil," Forest Policy and Economics, Elsevier, vol. 116(C).
    10. Arild Angelsen, 2017. "REDD+ as Result-based Aid: General Lessons and Bilateral Agreements of Norway," Review of Development Economics, Wiley Blackwell, vol. 21(2), pages 237-264, May.
    11. Muhammad Mustafizur Rahaman & Niaz Ahmed Khan, 2017. "Making international aid effective: An agenda for aligning aid to social business," Development Policy Review, Overseas Development Institute, vol. 35, pages 96-117, October.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:devpol:v:33:y:2015:i:3:p:313-323. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/odioruk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.