Publication: Targeting subsidies through output-based aid

Thumbnail Image
Files in English
English PDF (567.29 KB)
192 downloads

English Text (21.57 KB)
35 downloads
Date
2008-10
ISSN
Published
2008-10
Author(s)
Mumssen, Yogita
Kumar, Geeta
Johannes, Lars
Abstract
Output-based aid (OBA), or performance-based grants, can be used to help target services to the poor. Under OBA schemes, service providers are compensated only after delivery of a specified output, such as water connections of a specified quality, to a targeted beneficiary. In most cases that targeted beneficiary would be a poor household or community. Subsidies are provided in the form of payments for the provision of service to targeted groups to help cover the gap between the cost of provision and the user's ability to pay. Targeting subsidies involves challenges. OBA can provide opportunities to enhance targeting and lead to greater transparency in reaching the poor. While OBA is not yet mainstreamed in all infrastructure and social services sectors, the principles and mechanisms are compelling, and initial results promising.
Link to Data Set
Citation
Mumssen, Yogita; Kumar, Geeta; Johannes, Lars. 2008. Targeting subsidies through output-based aid. OBApproaches; Note No. 22. © World Bank, Washington, DC. http://hdl.handle.net/10986/11012 License: CC BY 3.0 IGO.
Report Series
Other publications in this report series
Journal
Journal Volume
Journal Issue
Collections
Associated URLs
Associated content
Citations