CIAO DATE: 05/2010
April 2010
Linking funding decisions to performance can help the best programs continue and give program managers strong incentives to lead their programs well. Performance-based funding can also have unintended negative consequences, such as inducing single-minded attention to specific targets to the exclusion of harder-to-measure but important goals. This report examines the use of performance-based funding (PBF) among the big three funders of HIV/AIDS programs in developing countries: the U.S. President's Emergency Plan for AIDS Relief (PEPFAR), the Global Fund to Fight AIDS Tuberculosis and Malaria, and the World Bank's Multi-Country HIV/AIDS Program for Africa (the MAP). All three have room for improvement.
Resource link: Are Funding Decisions Based on Performance? [PDF] - 894K