A Clearinghouse for Outcome Funds

Abstract

Despite persistent and widespread enthusiasm, pay-for-success has been slow to materialize – especially in international development assistance. This concept note argues that the availability of credible outcome funding is the most important bottleneck to the development of the sector; hypothesizes that once credible outcome funding is made available, markets should be able to solve most other coordination challenges, including input financing; and proposes a testable solution: a ‘clearinghouse’ that settles outcome-based contracts between funders and the rest of the social sector.

Conceptualizing Fiduciary Structures That Create Demand For Development Outcomes

“…The current state of the ecosystem service provider, leading to a what has been labeled a "clearinghouse" for outcomes funds 12. …”