Access to Finance in Output-Based Aid
Output-Based Aid (OBA) and other results-based financing mechanisms are gaining popularity in the development context for many reasons, in particular, the desire to link scarce public funding with actual results on the ground. But withholding disbu...
| Main Authors: | , , |
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| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2017
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/820251468167657765/Access-to-finance-in-output-based-aid http://hdl.handle.net/10986/27816 |
| Summary: | Output-Based Aid (OBA) and other
results-based financing mechanisms are gaining popularity in
the development context for many reasons, in particular, the
desire to link scarce public funding with actual results on
the ground. But withholding disbursements until the delivery
of 'results' or 'outputs' requires that
the service providers delivering the results must have
access to finance (A2F) to pay for the 'inputs' in
the first place. Such finance is not always available or
affordable. The purpose of this working paper is to outline
some of the key issues related to OBA and A2F. The analysis
focuses on the energy, water, and health sectors. Micro,
small and medium enterprise (MSME) financing is the main
topic; however, OBA is ultimately about poor households
affording access to basic services, and many OBA schemes
attempt to address A2F for households, so some of these
innovations are also described. The working paper is
expected to support a consultative process between experts
dealing with A2F challenges and experts on OBA. This process
should help raise awareness of the OBA approach among
potential financiers, and help consider solutions
(instruments, partnerships, capacity building) so that OBA
and other similar results-based financing mechanisms can be
brought to scale and integrated into broader sector policy,
where appropriate. |
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