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Department for International Development Payment by Results. Contents. Context – international & domestic shifts. What is Payment by Results ( PbR )? PbR in practice. DFID’s Strategy for PbR . UK Civil Service Reform – principles for better services with less. Choice

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Presentation Transcript
contents
Contents
  • Context – international & domestic shifts.
  • What is Payment by Results (PbR)?
  • PbR in practice.
  • DFID’s Strategy for PbR.
uk civil service reform principles for better services with less
UK Civil Service Reform – principles for better services with less

Choice

Decentralisation: “empowering all potential providers, from whichever sector, with the right to propose new ways to deliver services”

Diversity of provision: “[encouraging] new, innovative providers to compete for contracts”

Fair access: “[building] incentives for supporting particular social groups ...into contracts”

Accountability: “getting good value for money for taxpayers, so that we no longer tolerate mediocrity and pay even when services are of poor quality”

slide4

Why and where PbR? We need more evidence

  • Trade off between benefits and costs of risks. We thinkPbR works best where:
    • Indicators can be defined and independently measured.
    • Sufficient institutional desire, capacity and control to deliver intervention (pol ec)
slide5

What is payment by results?

Payment by results

100% funding on delivery

Cash on Delivery Ethiopia

Performance tranches

Development impact bonds

Global P’shipOutp Based Aid

Health Results Innovation

Common but differentiated approach

Girls Education Challenge

Milestone payments

Partner govs

Direction of travel

Suppliers

Traditional ‘input’ financing

100% funding upfront

Investors

Processes

Inputs

Outcomes

Outputs

paying by outcomes dfid s current activities
Paying by outcomes: DFID’s current activities

Current and potential programmes by sector

Clustering of programmes in service delivery

Current and potential programmes by type

Cascade effect with RBA programmes

emerging lessons pbr in dfid
Emerging lessons: PbR in DFID
  • It ain’t easy! (skills, finance, time).
  • Complementary measures.
  • Performance management tool.
  • Simplicity & communication matters.
  • Context.

Warning: this isn’t evidence!

dfid approach to pbr building the evidence base
DFID approach to PbR – building the evidence base
  • Expand the evidence base by doing more PbR:
    • Expanding the scope of PbR where appropriate, with a view to strategically addressing evidence gaps;
    • Rigorous, independent and comparable evaluations, in order to learn “what works”;
    • Leading by example, influence, link with and learn from others applying PbR both domestically and internationally.
  • Build capabilities for doing PbR in the right ways, by:
    • Translating evidence into action across the organisation;
    • Addressing systematic and incentive changes required to expand the scope of PbR;
    • Building skills and competencies relevant to PbR, in our partners and ourselves.
thank you
Thank you.

Ellie Cockburn

e-cockburn@dfid.gov.uk