Would you pay 100 percent for something without knowing when you might get it or whether it works? Of course not. Output-based aid (OBA) and results-based financing (RBF) work according to the same principle: service providers are paid only when results are delivered and verified. This video explains how OBA, which specifically targets poor customers, and other forms of RBF differ from traditional development funding, and the benefits of using OBA/RBF.
RBF and OBA are proper scheme because the fund will be not paid if the criteria of success is not achieved. So the local financier will have obligation to ensure the criteria is well fulfilled unless they will loose the money. Explanation in the video shows that how clear is the criteria is set
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