Results-based financing (RBF) has gainedpopularity in the international development communitybecause of its potential to make education spending moreeffective and efficient. In the education sector, RBF hasbeen primarily applied to four levels: teachers; studentsand families; schools; and governments. The results overallhave been mixed, with some notable successes and somedisappointing experiences. This report explores when and howRBF can help achieve better impacts in education. Whilethere is no rigorous evidence available to suggest that RBFon its own is better at producing learning outcomes relativeto other development financing modalities, there is asignificant amount of research that shows RBF can havepositive effects by incentivizing specific stakeholders inthe education system. In addition, there is operationalevidence available on how RBF can be designed andimplemented with country partners more effectively. It isimportant for practitioners and policymakers to learn fromthis evidence as the RBF portfolio in education grows acrossdevelopment agencies.
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