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A new approach to foreign aid’s application to primary schooling Based on work by Nancy Birdsall, William D Savedoff and Ayah Mahgoub Ayah Mahgoub [email protected] All Children Reading by 2015: From Assessment to Action April 12-14, 2010 Washington, DC 1 Cash on Delivery Aid

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A new approach to foreign aid’s application to primary schoolingBased on work by Nancy Birdsall, William D Savedoff and Ayah Mahgoub

Ayah [email protected]

All Children Reading by 2015: From Assessment to Action

April 12-14, 2010Washington, DC

1

Cash on Delivery Aid

Why doesn’t aid “work” in many low-income countries?

A different funder-recipient relationship: Cash on Delivery Aid

Donors pay for outcomes only and not inputs

Photo: USAID

Photo: Net

Countries use funds for whatever input mix and policy changes they believe will work best

5

Perhaps textbooksteacher trainingPhoto: U.S. Department of State

Photo: Anna Lindh Euro Mediterranean Foundation

conditional cash transfers

Photo: Prefectura Municipal de Erechim

improving roads so children can get to school

early nutrition programs to boost learning outcomes

Photo: Horizons UnlimitedPhoto: Pierre Holtz, UNICEF

Donors eschew hands-on input approachIdentification

Design

Negotiation

Approval

Startup

Implementation

Tech. Assist.

M & E

Final “Evaluation”

Outcome Measurement?

$

Traditional ProjectAid

Donor engaged in

almost every phase

Photo: Government of Bulgaria

Missions for meetingsTo discuss the processFor disbursing funds

For improving the processFor technical assistance

For receiving missions …

In favor of hands-off COD

Identification

Design

Negotiation

Approval

Startup

Implementation

Tech. Assist.

M & E

Final “Evaluation”

Outcome Measurement

$

Traditional ProjectAid

Donor engaged in

almost every phase

Cash on Delivery Aid

$Validation of outcomes by third party

Donor and recipient agree

measure of progress

The contract and annual results are public

The results are independently verified

Technical Assistance

Education Projects

Sector Programs (e.g. SWAPs)

Budget Support

Global Initiatives (e.g. FTI)

COD Aid

Bilateral Agencies

Private Foundations

Multilateral Institutions

NGOsDomestic Spending

Foreign Aid

Domestic Taxpayers

In reality: COD Aid is likely to complement other input funding

• Shared goalo universal completion of quality primary education

• Unit of progress o “Assessed Completer” (a student enrolled in the last

year of primary school who takes an approved standardized test)

• Paymento funder pays US$200 per Assessed Completer beyond

base year enrollment, regardless of test scores• Transparency

o recipient publishes enrollments, Assessed Completers & test scores; funder contracts an agent to conduct retests in a random sample of schools

Making it practical:universal primary completion

• Shared goalo every child reading by 2015

• Unit of progress o every child of a certain age (e.g. 8 years) that passes

an approved reading assessment• Payment

o funder pays US$200 per additional child that passes the assessment exam beyond base year number

• Transparencyo recipient publishes number of youth of testing age,

the number of assessed youth & test scores; funder contracts an agent to conduct retests

A possible application of COD Aid for reading

To learn more

For further information, pleaseo Visit the COD Aid page on our website at

www.cgdev.org/section/initiatives/o Email Ayah Mahgoub at

[email protected] or Bill Savedoff at [email protected]