Columbia International Affairs Online: Working Papers

CIAO DATE: 05/2010

Are Funding Decisions Based on Performance?

Nandini Oomman, Steven Rosenzweig, Michael Bernstein

April 2010

Center for Global Development


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.