1. Descriptive Analysis of Performance-Based Financing Education Project in Burundi
Victoria Ryan
World Bank Group
May 16, 2017

2. Introduction of PBF Pilot Project in Bubanza
Issue Area:
Education & System Strengthening
Project duration ( ): 2 years
Target Population:
6,536 students
Mission: To provide greater access to quality education for all children by improving quality of teaching and learning.

3. PBF Health Project in Burundi
Program duration ( ): 11 years
Target Population:
735 health centers
Issue Area:
Health & System Strengthening
Mission: To provide greater access to healthcare by improving quality of service provision. Improved healthcare outcomes: pre-natal care, assisted deliveries & vaccinations.

4. What is Performance Based Financing?
Strategy of financing based on results. Mechanism whereby the payment of funds is conditional on the achievement of pre-defined objectives. Improves service provider performance and services through financial motivation.
Obligation for performance
Emphasis on staff motivation & autonomy
Output-focused - Funds given after services provided
Empowerment of stakeholders
Strict monitoring mechanism
Performance-based financing

5. Traditional vs. Results-based approach*
Performance Based Financing
Traditional Financing
Inputs to service providers
For the service providers:
Autonomy of management
Assurance of quality
Motivation of staff
Outputs of service providers 1 3 2 $ $
1 – Financing given based on results achieved (and not on perceived input needs)
2 – Funds directly transferred to service providers, not used to provide inputs "in kind"
3 – Designed to address internal problems of the service providers
*World Bank Group – PBF and free healthcare in Burundi presentation

6. Implementation evaluation of performance-based financing pilot project
Research Methodology
Research project:
Implementation evaluation of performance-based financing pilot project
Goal:
Draw conclusions about strength of design and implementation to inform feasibility of scale-up
Methodology:
Conducted interviews with key stakeholders, analyzed administrative data, conducted research

7. Key Characteristics to PBF success
There are six key cross-cutting characteristics that are indicative of success in a PBF program, regardless of the sector.
Government buy-in
M&E System
Transparency
Autonomy
Establishment of Contracts
Role definition, separation & decentralization

8. Establishment of contracts
Program Design
Establishment of contracts
Action plans developed by schools and regulatory agencies
Schools & regulatory agencies developed goals to achieve
Strengths
Contracts clarify roles and responsibilities
Set objectives, identify problems and outline strategies
Organizational capacity of all actors strengthened & more collaborative culture
Challenges
Short-term thinking
Contracts & action plans served to improve understanding, but not always successful in practice
Disconnect in communication observed

9. Definition, separation and decentralization of roles
Program Design
School management committees
Continuous monitoring of schools by regulators
Funds disbursed to school only after verifying spending
Strengths
Increased community participation
Removed threat of gaming the system
Strong structure of checks and balances
Challenges
Ensuring engagement
Time consuming activity
Payment process very delayed (up to 3 months)

10. Autonomy Program Design Strengths Challenges
Actors given decision-making power
Schools spent funds autonomously
Quality Scores
Equity funding mechanisms
Strengths
Empowerment and autonomy of stakeholders
Spending on locally-identified needs
Motivated actors to produce quality outputs
Puts actors on level playing field
Challenges
Perceived as more work instead of better work
Demanding monitoring system
N/A
Extreme resource constraints faced by schools

11. Transparency Program Design Strengths Challenges
Payment report submitted of services provided by school
Bonuses given to schools who exceeded targets
Intrinsic and extrinsic motivation for teachers
Strengths
Open exchange of information
Motivates schools to perform well
Teachers’ motivation improved
Challenges
Reporting process very time consuming
Infrastructure/unfair geographic challenges
Impact of intrinsic and extrinsic motivation

12. Government buy-in Program Design Strengths Challenges
Ministry of Education at central and decentralized levels have different responsibilities
Provincial level plays regulating role
Provincial regulators ensure PBF accounts for national strategy
Strengths
Government entities feel engaged and invested in PBF success
Open communication between community & government
Government sees benefits of PBF; put forth financing
Challenges
Engaged at expense of PBF effectiveness
Weak M&E system and ability to monitor program
Costly program; in conjunction with health, question sustainability

13. Monitoring & Evaluation System
Program Design
Qualitative & quantitative indicators
Data verification
Data validation
Strengths
Positive behavior change observed
Multiple layers of data verification
Increased accountability
Challenges
Time consuming
Conflict of interest in data verification
ADIS has too much responsibility

14. Key characteristics & PBF Education Project
Best Practice
PBF Ed Score
Recommendations
Introduce satisfaction surveys to measure opinions and make management decisions
High
Medium
Low
Put in place more long-term plans
Decentralize payments, create secondary contracts
Remove conflict of interest (DCE/ICE verification), reevaluate bonus structure
Set up national technical management unit to ensure government regulation of M&E system and develop public-private partnership at the provincial-level
Separate verification and validation roles (ADIS); ADIS should not play permanent role; revamp M&E tools; ensure monthly data collection and analysis; use monthly data for school performance verification; conduct refresher trainings

15. Conclusion Impressive results in health
Leverage lessons learned & health organizational structures
Implementation consistent with key characteristics
Identify risks and put in place appropriate mechanisms
Main concerns: sustainability, cost efficiency, capacity of education system
To mitigate concerns, build capacity of stakeholders & do continuous monitoring and design assessment

16. Questions?