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Output-based aid
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<p>Output-based aid (OBA) (or results-based aid) refers to <a href="/facts/Development_aid/0FQxWKfK">development aid</a> strategies that link the delivery of <a href="/facts/Public_services/gnDGgRmQ">public services</a> in <a href="/facts/Developing_countries/eTfS4kxl">developing countries</a> to targeted performance-related <a href="/facts/Subsidy/W9lLudyn">subsidies</a>. OBA subsidies are offered in transport construction, education, water and <a href="/facts/Sanitation/NLGqBs2T">sanitation</a> systems, and healthcare among other sectors where positive <a href="/facts/Externalities/hGgw7gtT">externalities</a> exceed cost recovery exclusively from private markets. OBA is a form of results-based financing, with similar principles as <a href="/facts/Performance-based_contracting/hWwP3uuw">performance-based contracting</a>. </p><p>Interest in OBA and results-based financing in the <a href="/facts/International_development/ouf3xcPQ">international development</a> sector is growing. In healthcare, OBA is often implemented by contracting providers in either the public or private sector, sometimes both, and issuing vouchers to people considered at higher risk of disease or in greater need of the health services. OBA (in the form of results-based contracts) is also used for <a href="/facts/WASH/wzhE6EEh">rural water supply in Africa</a>. </p><p>One of the origins and drivers of the OBA concept was in 2002, when the <a href="/facts/World_Bank_Group/9z4A2PDl">World Bank Group</a> launched its Private Sector Development Strategy (PSD), of which OBA was a key component. The World Bank has been the most active participant in OBA. In 2003, along with the UK's <a href="/facts/Department_for_International_Development/QwqeTWza">Department for International Development</a> (DFID), they launched the "Global Partnership on Output-Based Aid" (GPOBA), later renamed to "Global Partnership for Results-Based Approaches" (GPRBA). The reason for the change of name was because the partnership "broadened its mandate in 2019 to incorporate more flexible financing solutions beyond OBA".: 14 </p>