Outcomes-Based Financing: Paying for What Works
As pressure grows to demonstrate impact and scale effective solutions, outcomes-based financing has emerged as a promising approach. By linking funding to results rather than activities, it offers a way to improve accountability, unlock public and private capital, and focus efforts on what actually works.
But in practice, outcomes-based models are complex. They require new ways of measuring success, aligning incentives, and managing risk across governments, funders, and implementers. In emerging markets, particularly in regions like Latin America, these challenges are even more pronounced, yet the potential for impact is significant.
This discussion explores how outcomes-based approaches can evolve to better support systemic change and long-term service delivery, including in areas like education and 21st century skills. What does it take to design models that are both rigorous and flexible? How can we mobilize public finance at scale while ensuring that measurement systems remain practical and meaningful?
Bringing together practitioners, funders, and policymakers, this session will examine the opportunities, limitations, and future pathways for pay-for-results models in driving sustainable impact.
Speakers
Dayoung Lee is Partner and Global Education to Employment Lead at Dalberg Advisors, working at the intersection of education, technology, and systems change.
Duncan McNicholl is CEO of Uptime Global, designing results-based models to deliver sustainable rural water services.
Steph Dobrowolski is CEO of Rising Academies, leading education systems innovation across West Africa.
Johanna Cordovez is CEO and Co-founder of TxC Impact, building AI-powered solutions and innovative finance models for social impact.
Discussion Questions
Where are outcomes-based financing models working well today, and what can we learn from those examples?
What are the biggest challenges in implementing pay-for-results approaches, particularly in emerging markets?
How can we balance rigorous measurement with the flexibility needed for complex, systems-level change?
What would it take to scale outcomes-based financing through public systems and unlock larger pools of capital?