DFID’s Evaluation Framework for Payment by Results

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DFID believes that PBR is an innovative delivery mechanism which can, in the right circumstances, be used to sharpen incentives for suppliers, and partner governments, to perform. Where it works best, PBR can shift the focus of commissioners and suppliers from inputs to outcomes – leading to real, tangible, measurable improvements in the areas which matter most for poverty reduction. DFID is committed to expanding the use of Payment by Results. We believe that the most effective way to do so – and to deliver increasing value for money and development impact for each pound DFID spends – is to build evidence on what works best and in what circumstances.

This Evaluation Framework supports DFID’s Strategy for Payment by Results by setting out an agenda for using evaluation to learn about what works and ensuring value for money. This Framework is intended for DFID and wider communities interested in understanding a broader range of aid instruments referred to as ‘Payment by Results’ (PBR).

This Framework does not replace any existing policies, strategies, quality standards or guidance for the evaluation of PBR programmes. Instead, it complements existing information by identifying the evidence gaps and learning opportunities that are specific to Payment by Results.

The Framework first sets out the context for PBR instruments. It then uses existing expectations and evidence as the basis for selecting Priority Evaluation Questions that can be answered within and across programmes. These Priority Evaluation Questions are intended to be additional to other context specific evaluation questions.

DFID recognises that new and innovative PBR instruments are being developed in contexts and for sectors that are rapidly changing. To maximise learning without stifling innovation this Framework intends to make it easier to design context relevant evaluations that also help DFID learn across programmes. Deciding how to answer Priority Questions in a given context should be done as appropriate and with technical evaluation support.

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