Output-Based Aid Lessons Learned and Best

Developing country governments and the development aid community are acutely aware of the need to find more effective ways to improve basic living conditions for the poor, as traditional approaches of delivering public support have not always led to the results intended. "Results-based financing"(RBF) instruments, which tie the disbursement of public funding to the achievement of pre-agreed results, are now recognized as one important piece of the aid delivery puzzle. The aim of these instruments is to enhance the effectiveness of public funding.

Foreword	p. xi
Acknowledgments	p. xiii
Abbreviations	p. xv
Introduction to Output-Based Aid	p. 1
Output-Based Aid: Improving Access to Basic Services for the Poor	p. 3
Defining Output-Based Aid	p. 4
This Book: Analyzing the Performance of OBA	p. 7
Notes	p. 11
Snapshot of the OBA Universe	p. 13
Preliminary Evidence on the Effectiveness of OBA	p. 15
Where Does the Funding Come From?	p. 16
Variations to OBA Applications	p. 18
Notes	p. 22
OBA Review by Sector	p. 23
Information and Communication Technology	p. 25
Funding	p. 28
Targeting	p. 30
Performance Risk	p. 31
Private Sector Capital and Expertise	p. 33
Monitoring	p. 34
Notes	p. 35
Roads	p. 37
Funding	p. 43
Targeting	p. 44
Performance Risk	p. 44
Private Sector Capital and Expertise	p. 47
Monitoring	p. 48
Notes	p. 49
Energy	p. 51
Off-Grid Systems	p. 53
Minigrid Systems	p. 56
Grid-Based Systems	p. 56
Funding	p. 57
Targeting	p. 58
Performance Risk	p. 60
Private Sector Capital and Expertise	p. 63
Monitoring	p. 64
Note	p. 66
Water and Sanitation	p. 67
Funding	p. 68
Targeting	p. 69
Performance Risk	p. 71
Private Sector Capital and Expertise	p. 74
Monitoring	p. 75
Note	p. 77
Health	p. 79
Funding	p. 84
Targeting	p. 85
Performance Risk	p. 86
Private Sector Capital and Expertise	p. 88
Monitoring	p. 88
Notes	p. 90
Education	p. 91
Funding	p. 92
Targeting	p. 92
Performance Risk	p. 94
Private Sector Capital and Expertise	p. 94
Monitoring	p. 96
Note	p. 96
Cross-Cutting Lessons	p. 97
Cross-Cutting Lessons Learned: Challenges and Best Practice	p. 99
Transparency: Explicit Targeting of Subsidies for the Poor	p. 101
Accountability: Shifting Performance Risk to Providers	p. 107
Private Sector Capital and Expertise	p. 117
Innovation and Efficiency	p. 120
Sustainability, Tariffs, and the Enabling Environment	p. 125
Monitoring of Results in Traditional World Bank Projects	p. 130
Notes	p. 133
Key Considerations for Moving Forward	p. 135
Notes	p. 140
Appendix Output-Based Aid Projects in the World Bank Group, March 30, 2009	p. 143
References	p. 159
Index	p. 165
Boxes
Applications of OBA Subsidy Design Mechanisms	p. 18
Telecommunications Development Fund in Chile	p. 26
Fund for Telephony Development in Guatemala	p. 34
Argentina: Pilot Roads Maintenance and Sector Rehabilitation Project	p. 41
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Output-Based Aid Lessons Learned and Best Practices

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