Results-Based Approaches in Agriculture: What is the Potential?

Heiner Janus, Sarah Holzapfel
2016 Social Science Research Network  
Increased and more effective public and private investments in the agricultural sector are needed to address the challenge of ending hunger and achieving food security by 2030. This paper analyses the potential of results-based approachesan innovative financing instrument that links payments to pre-defined resultsto contribute to this challenge. Results-based approaches promise several potential advantages over traditional aid modalities, such as a greater focus on results, better
more » ... systems and improved incentives that increase aid effectiveness. They are also discussed as an important tool to accelerate innovation and to leverage additional resources from private investors for agricultural and food security interventions. Although widely applied in the health and education sectors, there are only a few experiences with results-based approaches in the agricultural sector, and the suitability of the sector for the instrument is debated. The aim of this paper is to contribute to this debate by reviewing three pilot interventions representing different types of results-based approaches: results-based aid (contract between governments), results-based finance (contract between a funder/host-country government and a service provider/company) and development impact bonds (contract between a funder, service provider and private investor). The analysis draws on existing literature on results-based approaches, expert interviews as well as on programme and guidance documents by various development agencies.
doi:10.2139/ssrn.2885685 fatcat:dsql5qs7jzdbvecdnpan22lgle