Publication

International Development Association (IDA) donors and others operating a country performance-based allocation system face two difficult problems: how to strengthen incentives to produce and document development results and how to increase flexibility for fragile states. Fragile states have the greatest need for projects, but their projects tend to rate poorly in performance-based allocations systems. The author proposes that incentives should be rebalanced, and that performance-based allocations to fragile states should be supplemented through a performance fund.