Understanding Results-based Conditionality in Development Cooperation: A Comparative Case Analysis

Abstract

Growing concerns over aid effectiveness in recent years have changed views around the aid contract, in part the role of aid conditionality and its perceived limits. This research seeks answers to questions on how results-based conditionality has been applied by exploring the multiple results-based aid programs through a case study from a comparative perspective. By investigating theoretical background on conditionality and reviewing recent discussions on results-based conditionality, this paper proposes a conceptual framework to discover key elements of results-based conditionality and to analyze them to see how the new approach may affect the process and result of aid delivery in comparison with traditional conditionality. The case analysis shows that results-based approach shifts the focus of aid by altering and strengthening the nature of incentives from various aspects of non-financial incentives, selectivity, payment, performance management, and sustainability with varying degrees. The paper concludes with challenges and limitations of results-based approach.