Publication:
Transforming Economic Inclusion: Government Innovations through Outcomes-Based Financing

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dc.contributor.authorAroldi, Mara
dc.contributor.authorBrubaker, Celeste
dc.contributor.authorOsorio, Sebastian
dc.contributor.authorVelarde, Juliana Outes
dc.date.accessioned2025-06-11T14:53:30Z
dc.date.available2025-06-11T14:53:30Z
dc.date.issued2025-06-11
dc.description.abstractAdoption of economic inclusion programs (bundles of coordinated, multidimensional interventions that support individuals, households, and communities to sustainably increase their incomes and assets) is expanding rapidly, with a global increase of more than 50 percent in the reach of such programs since 2021. By 2024, these programs were supporting over 15 million households, benefiting more than 70 million people directly and indirectly . Governments are increasingly leading these scale-up efforts. About 43 percent of 405 surveyed programs are government led, accounting for about 74 percent of all participants. Economic inclusion initiatives must be highly adaptable and tailored to the contexts of regions and communities; innovation and strong accountability mechanisms can ensure that programs are implemented effectively and resources used efficiently. Outcomes-based financing (OBF) is an approach to results-based funding in which payments are at least partially linked to the achievement of outcomes. It can potentially transform government-led economic inclusion programs by aligning stakeholder interests with the interests of the communities the programs are meant to serve and creating space and incentive for innovation. By shifting the focus from what goes into a program to what comes out of it, OBF can offer a more strategic and results-driven approach to program implementation. This paper draws on global experience with OBF and defines OBF and its principles; provides an overview of the OBF landscape; presents case studies of OBF projects in Colombia, India, and East Africa; and examines the contextual challenges to consider when determining whether OBF is the right approach for government-led programs. Finally, the authors offer practical guidance on addressing the risks and challenges, suggests strategies for scaling outcomes-based finance initiatives, and identifies the research gaps.en
dc.identifierhttp://documents.worldbank.org/curated/en/099005406102518063
dc.identifier.doihttps://doi.org/10.1596/43323
dc.identifier.urihttps://hdl.handle.net/10986/43323
dc.languageEnglish
dc.language.isoen_US
dc.publisherWashington, DC: World Bank
dc.relation.ispartofseriesPEI in Practice; Volume 12
dc.rightsCC BY-NC 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttps://creativecommons.org/licenses/by-nc/3.0/igo
dc.subjectECONOMIC GROWTH
dc.subjectECONOMIC INCLUSION PROGRAMS
dc.subjectSUSTAINABLE INCOME AND ASSET GROWTH
dc.subjectOUTCOMES-BASED FINANCING (OBF)
dc.titleTransforming Economic Inclusionen
dc.title.subtitleGovernment Innovations through Outcomes-Based Financingen
dc.typeReport
dspace.entity.typePublication
okr.date.disclosure2025-06-11
okr.date.doiregistration2025-06-13T02:10:01.905841Z
okr.date.lastmodified2025-06-11T13:01:01Zen
okr.doctypeEconomic & Sector Work
okr.docurlhttp://documents.worldbank.org/curated/en/099005406102518063
okr.guid099005406102518063
okr.identifier.docmidIDU-044f4de2-6900-4bf0-98f5-0cd4dfa36e92
okr.identifier.externaldocumentum40020688
okr.identifier.internaldocumentum40020688
okr.identifier.report202182
okr.import.id7649
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttps://documents.worldbank.org/curated/en/099005406102518063/pdf/IDU-044f4de2-6900-4bf0-98f5-0cd4dfa36e92.pdfen
okr.region.geographicalWorld
okr.topicFinance and Financial Sector Development::Financial Regulation & Supervision
okr.topicGovernance::Governance and the Financial Sector
okr.topicMacroeconomics and Economic Growth::Economic Growth
okr.topicMacroeconomics and Economic Growth::Income
okr.unitHSPGE - Social Protection ＆ Labor Global
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