Results Based Financing

TES team
TES team • 2 June 2022
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Results-based financing (RBF) is an umbrella term referring to any program or intervention that provides rewards after the credible verification of an achieved result. These rewards can be monetary or non-monetary and can be partial (such as a bonus on top of a salary) or whole (such as the cost of training a teacher under output-based aid). There are differing opinions on what actually constitutes results-based financing, with much of the debate centred on what constitutes a “result”. These can be outputs (such as the implementation of a new teacher training system), intermediate outcomes, final outcomes (such as learning) or — more likely — a mixture. Importantly, the dividing line between inputs and outputs can depend on which particular bottleneck the RBF is being used to resolve and on the objectives of each specific project.

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