Result-based financing (RBF) promotes impact-based innovation. RBF links disbursements to the verified achievement of pre-agreed results. The responsibility for achieving results and selecting the measures required for this lies exclusively with the project partner, who can try out new methods for achieving goals. This promotes innovation and efficiency in addressing development policy challenges. It requires that project partners have the necessary capacity to achieve the results on their own. Therefore, relevant systems on the partner side must be checked beforehand. This issue of “Development in Brief" gives an overview of opportunities and challenges of RBF and draws a conclusion.

Results-based financing – a driver for innovation(PDF, 121 KB, accessible)