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Performance-Based Financing

In: Innovative Humanitarian Financing

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  • Maram Ahmed

    (School of Oriental and African Studies)

Abstract

A type of financial mechanism that is expected to support and facilitate more private sector funding into the humanitarian sector is performance-based financing (PBF). This mechanism has been increasingly implemented in low and middle-income countries, as well as used in fragile and humanitarian settings. This chapter will examine the use of PBF in the humanitarian sector. It will give a brief overview of this funding mechanism, briefly analyze new trends as well as the opportunity, challenges and future prospects of PBF. Additionally, this chapter will evaluate the world’s first Humanitarian Impact Bond issued by the International Committee of the Red Cross (ICRC). It will assess the viability of this instrument and what kind of impact it can deliver in comparison with traditional funding approaches.

Suggested Citation

  • Maram Ahmed, 2021. "Performance-Based Financing," Palgrave Studies in Impact Finance, in: Innovative Humanitarian Financing, chapter 0, pages 65-99, Palgrave Macmillan.
    • Handle: RePEc:pal:psifcp:978-3-030-83209-4_4
    DOI: 10.1007/978-3-030-83209-4_4
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