Independent Verification in Results-Based Financing
With pressure for greater accountability and value for money in public budgets, widening the use of results-based financing (RBF) and setting up adequate independent mechanisms to verify results is becoming increasingly important. In January 2012, the World Bank launched the Program-for-Results (PforR), an innovative financing instrument that disburses funds upon delivery of verified results in developing country programs. Until now, the use of independent verification has been limited to output-based aid (OBA), which is one of the RBF modalities; however, there is potential for more widespread use of independent verification. This note highlights lessons from projects funded by the Global Partnership on Output-Based Aid (GPOBA) and the World Bank, and discusses elements that can best ensure the independence and effectiveness of a verification system.