Results-Based Financing and Its Potential Role in Advancing the Nexus Approach - Governing the Nexus: Water, Soil and Waste Resources Considering Global Change - page 80

Even though RBF schemes have been in use for some time now, it is still a
relatively new approach and many modalities have arisen, including some with a
very narrow de

c problems. However, the
different tools can be adapted to other circumstances, as they are mostly based on
certain principles rather than rigid models with strong procedural focus.
Nevertheless, some of the tools that could be more useful to advance the nexus
approach, like Cash on Delivery (COD) have not been broadly used, while others
like Output-Based Aid or Output-Based Disbursements have been used on a small
scale or only recently have been implemented on a larger scale. However, the fact
that the RBF mechanisms link payments to the achievement of results measured
through certain indicators provides a good opportunity to de

nition and designed to tackle very speci

ne indicators that
consider the nexus approach and make those payments dependent on progress
towards improvement on all nexus components combined. At the same time, as
RBF mechanisms require a detailed analysis at the design stage, the efforts made
during that stage could take a more thorough consideration of the effects of the
planned intervention on all components of the nexus and incentivize the right
solutions to maximize positive impacts and neutralize or minimize the negative
ones.

2 Challenges Facing the Nexus Approach

Given the broad range of possible scenarios and the complexity of the socioeco-
logical challenges that development professionals and government of cials would

have to deal with when focusing on the nexus approach to design the interventions
pertaining to the management of water, waste and soil resources, it is not possible to
apply

solutions (with minor adjustments) to resolve the issues at
hand. Even though there are some strategies that have shown effectiveness in
certain circumstances, like integrated water resources management (IWRM),
decentralization and participation, they are not suitable beyond certain limits and
there are still many challenges for which new strategies need to be developed.
So far, some principles regarding how to embrace the nexus approach in
resolving development issues have been enunciated (Hoff 2011 ), but still one or
more sets of principles could be adapted with a more focused aim to provide
guidance in tackling scenarios that are more speci

' off the shelf '

c. To this end, focusing on
categories of interventions within the nexus, like increasing resource productivity,
using waste as a resource in multi-use systems, etc., could be well served by setting
speci c principles to guide the design of each speci c intervention within a

category.
Beyond the question of de

ning what the principles that should guide the actions
of the development community are, there are other challenges worth noting within
the scope of this chapter.