Publication: Results-Based Financing in Education: Financing Results to Strengthen Systems
Loading...
Date
2017-03
ISSN
Published
2017-03
Author(s)
Editor(s)
Abstract
Result-based financing (RBF) captures the essence of how the World Bank Group (WBG) is implementing its education strategy, Learning for All. The strategy emphasizes learning (rather than just schooling), since that is what leads to economic growth, development, and poverty reduction. Second, the strategy calls for investing For all so as to ensure the equity dimension behind the Sustainable Development Goals (SDGs) and the Bank’s Twin Goals of reducing poverty and boosting shared prosperity. These goals can be achieved through strengthening education systems. This paper largely focuses on how finance, and RBF specifically, can be used as a lever to pull education systems into coherence. RBF encompasses all of the four transformations called for: performance, innovation, inclusion, and finance. Specifically, putting results first (performance), and embracing results-based approaches to finance (finance) is at the heart of the WBG approach. The approach also offers a new way of approaching problems (innovation), and incentivizing results allows for differentiating levels of rewards, in order to favor traditionally disadvantaged groups, such as rural girls or children living with disabilities (inclusion).
Link to Data Set
Citation
“World Bank Group. 2017. Results-Based Financing in Education: Financing Results to Strengthen Systems. © World Bank. http://hdl.handle.net/10986/26268 License: CC BY 3.0 IGO.”
Associated URLs
Associated content
Other publications in this report series
Journal
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
Publication Results-Based Financing in Education(World Bank, Washington, DC, 2019-01)Results-based financing (RBF) has gained popularity in the international development community because of its potential to make education spending more effective and efficient. In the education sector, RBF has been primarily applied to four levels: teachers; students and families; schools; and governments. The results overall have been mixed, with some notable successes and some disappointing experiences. This report explores when and how RBF can help achieve better impacts in education. While there is no rigorous evidence available to suggest that RBF on its own is better at producing learning outcomes relative to other development financing modalities, there is a significant amount of research that shows RBF can have positive effects by incentivizing specific stakeholders in the education system. In addition, there is operational evidence available on how RBF can be designed and implemented with country partners more effectively. It is important for practitioners and policymakers to learn from this evidence as the RBF portfolio in education grows across development agencies.Publication Can Understanding How Middle Managers Make Decisions Help Design Effective Results-Based Financing Mechanisms in Education?(World Bank, Washington, DC, 2020-03-01)The Results in Education for All Children (REACH) Trust Fund supports and disseminates research on the impact of results-based financing on learning outcomes. The Evidence series highlights REACH grants around the world to provide empirical evidence and operational lessons helpful in the design and implementation of successful performance-based programs.Publication South Africa - Results-Based Financing and the Book Supply Chain(World Bank, Washington, DC, 2019-12)Literacy serves as an essential building block for learning, so when children master reading, they are more likely to succeed in school generally. To support the South African government’s campaign to improve literacy rates and foster a love of reading among children, room to read implemented an initiative that included results-based elements to increase the availability of affordable, quality storybooks in African languages. The project brought together public and private sector players in the book supply chain to develop new national standards on storybooks and translations, and helped to identify and build capacity of smaller publishers and writers to publish African-language storybooks. In doing so, the project demonstrated how results-based financing can be effective in the production and procurement stages of the book chain in South Africa. Results-based financing motivated and engaged publishers and writers to participate and stay engaged in the two-year project, which armed them with the skills and knowledge they need to continue to create and publish quality storybooks on their own. The success of the South Africa project underscores the potential of using innovative models such as pooled procurement, open licensing, and one day one book workshops along with results-based financing to increase the availability of quality children’s books in a cost-efficient manner. By strengthening the book chain, the project ultimately helped to foster children’s love of reading and helped them to become better learners.Publication Can Results-Based Financing Improve the Effectiveness of Short-Term Education and Skills Training Programs?(World Bank, Washington, DC, 2021-06-07)Globally, an estimated 267 million youth aged between 15 and 24 are neither in education nor employed, with most of these youth residing in Sub-Saharan Africa and South Asia. This number is likely to increase substantially due to the Coronavirus (COVID-19) pandemic. Short-term education and skills training programs can help unemployed and out-of-school youth acquire the qualifications and skills they need to secure and maintain productive jobs. Such training programs typically combine elements of classroom education with more practical workplace training and are offered by governments, often in partnership with the private sector. Given the large amount of money that governments channel into such programs, there is a growing interest in using results-based financing (RBF) to maximize returns on their investment. This study explored whether the use of financial incentives for training providers and participants improved the impact of short-term education and skills training programs on out-of-school and unemployed youth.Publication Results-Based Climate Finance in Practice(World Bank, Washington, DC, 2017-05)Results-based financing is a well-established financing modality in the health and education sectors but it is still in an early stage of deployment in the area of climate change. This report reviews 74 results-based climate financing (RBCF) programs implemented in developing countries with an objective to: assess the characteristics and overall volume of funding flowing through RBCF programs, describe the various approaches to designing and implementing RBCF programs, and compare practical experiences with applying RBCF with the existing theory and literature. The report finds that RBCF can: facilitate carbon pricing and market building, support host countries' policy processes to achieve their NDCs, and leverage private sector activity and financing. RBCF can thus play a critical role in mobilizing the resources and supporting the policies and actions needed to achieve the objectives of the Paris Agreement.
Users also downloaded
Showing related downloaded files
Publication Business Ready 2024(Washington, DC: World Bank, 2024-10-03)Business Ready (B-READY) is a new World Bank Group corporate flagship report that evaluates the business and investment climate worldwide. It replaces and improves upon the Doing Business project. B-READY provides a comprehensive data set and description of the factors that strengthen the private sector, not only by advancing the interests of individual firms but also by elevating the interests of workers, consumers, potential new enterprises, and the natural environment. This 2024 report introduces a new analytical framework that benchmarks economies based on three pillars: Regulatory Framework, Public Services, and Operational Efficiency. The analysis centers on 10 topics essential for private sector development that correspond to various stages of the life cycle of a firm. The report also offers insights into three cross-cutting themes that are relevant for modern economies: digital adoption, environmental sustainability, and gender. B-READY draws on a robust data collection process that includes specially tailored expert questionnaires and firm-level surveys. The 2024 report, which covers 50 economies, serves as the first in a series that will expand in geographical coverage and refine its methodology over time, supporting reform advocacy, policy guidance, and further analysis and research.Publication World Development Report 2024(Washington, DC: World Bank, 2024-08-01)Middle-income countries are in a race against time. Many of them have done well since the 1990s to escape low-income levels and eradicate extreme poverty, leading to the perception that the last three decades have been great for development. But the ambition of the more than 100 economies with incomes per capita between US$1,100 and US$14,000 is to reach high-income status within the next generation. When assessed against this goal, their record is discouraging. Since the 1970s, income per capita in the median middle-income country has stagnated at less than a tenth of the US level. With aging populations, growing protectionism, and escalating pressures to speed up the energy transition, today’s middle-income economies face ever more daunting odds. To become advanced economies despite the growing headwinds, they will have to make miracles. Drawing on the development experience and advances in economic analysis since the 1950s, World Development Report 2024 identifies pathways for developing economies to avoid the “middle-income trap.” It points to the need for not one but two transitions for those at the middle-income level: the first from investment to infusion and the second from infusion to innovation. Governments in lower-middle-income countries must drop the habit of repeating the same investment-driven strategies and work instead to infuse modern technologies and successful business processes from around the world into their economies. This requires reshaping large swaths of those economies into globally competitive suppliers of goods and services. Upper-middle-income countries that have mastered infusion can accelerate the shift to innovation—not just borrowing ideas from the global frontiers of technology but also beginning to push the frontiers outward. This requires restructuring enterprise, work, and energy use once again, with an even greater emphasis on economic freedom, social mobility, and political contestability. Neither transition is automatic. The handful of economies that made speedy transitions from middle- to high-income status have encouraged enterprise by disciplining powerful incumbents, developed talent by rewarding merit, and capitalized on crises to alter policies and institutions that no longer suit the purposes they were once designed to serve. Today’s middle-income countries will have to do the same.Publication Global Economic Prospects, January 2025(Washington, DC: World Bank, 2025-01-16)Global growth is expected to hold steady at 2.7 percent in 2025-26. However, the global economy appears to be settling at a low growth rate that will be insufficient to foster sustained economic development—with the possibility of further headwinds from heightened policy uncertainty and adverse trade policy shifts, geopolitical tensions, persistent inflation, and climate-related natural disasters. Against this backdrop, emerging market and developing economies are set to enter the second quarter of the twenty-first century with per capita incomes on a trajectory that implies substantially slower catch-up toward advanced-economy living standards than they previously experienced. Without course corrections, most low-income countries are unlikely to graduate to middle-income status by the middle of the century. Policy action at both global and national levels is needed to foster a more favorable external environment, enhance macroeconomic stability, reduce structural constraints, address the effects of climate change, and thus accelerate long-term growth and development.Publication Digital Progress and Trends Report 2023(Washington, DC: World Bank, 2024-03-05)Digitalization is the transformational opportunity of our time. The digital sector has become a powerhouse of innovation, economic growth, and job creation. Value added in the IT services sector grew at 8 percent annually during 2000–22, nearly twice as fast as the global economy. Employment growth in IT services reached 7 percent annually, six times higher than total employment growth. The diffusion and adoption of digital technologies are just as critical as their invention. Digital uptake has accelerated since the COVID-19 pandemic, with 1.5 billion new internet users added from 2018 to 2022. The share of firms investing in digital solutions around the world has more than doubled from 2020 to 2022. Low-income countries, vulnerable populations, and small firms, however, have been falling behind, while transformative digital innovations such as artificial intelligence (AI) have been accelerating in higher-income countries. Although more than 90 percent of the population in high-income countries was online in 2022, only one in four people in low-income countries used the internet, and the speed of their connection was typically only a small fraction of that in wealthier countries. As businesses in technologically advanced countries integrate generative AI into their products and services, less than half of the businesses in many low- and middle-income countries have an internet connection. The growing digital divide is exacerbating the poverty and productivity gaps between richer and poorer economies. The Digital Progress and Trends Report series will track global digitalization progress and highlight policy trends, debates, and implications for low- and middle-income countries. The series adds to the global efforts to study the progress and trends of digitalization in two main ways: · By compiling, curating, and analyzing data from diverse sources to present a comprehensive picture of digitalization in low- and middle-income countries, including in-depth analyses on understudied topics. · By developing insights on policy opportunities, challenges, and debates and reflecting the perspectives of various stakeholders and the World Bank’s operational experiences. This report, the first in the series, aims to inform evidence-based policy making and motivate action among internal and external audiences and stakeholders. The report will bring global attention to high-performing countries that have valuable experience to share as well as to areas where efforts will need to be redoubled.Publication World Bank Annual Report 2024(Washington, DC: World Bank, 2024-10-25)This annual report, which covers the period from July 1, 2023, to June 30, 2024, has been prepared by the Executive Directors of both the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA)—collectively known as the World Bank—in accordance with the respective bylaws of the two institutions. Ajay Banga, President of the World Bank Group and Chairman of the Board of Executive Directors, has submitted this report, together with the accompanying administrative budgets and audited financial statements, to the Board of Governors.