Results-Based Financing and Its Potential Role in Advancing the Nexus Approach - Governing the Nexus: Water, Soil and Waste Resources Considering Global Change - page 82

It is not possible, within the scope of this chapter, to address all of the challenges
listed above, even though the list is far from exhaustive. However, after a brief
introduction to some elements of RBF provided in the next section, a theoretical
approach is presented later to show different ways in which the use of the RBF
approach and its tools could contribute to tackle some of these challenges.

3 Results-Based Financing Tools

RBF is a general or umbrella denomination for a suite of different financing tools

that work at different levels and over different stakeholders to cause the delivery of
expected results. In the following subsections, a brief explanation of some aspects
of the RBF analytical framework and tools is presented, as they are relevant to
the proposed discussion. As an introduction to the subject, Fig. 1 introduces
the development results chain and a de nition of its elements as understood by the

World Bank.

Input Inputs are the financial, human and other resources mobilized to support

activities undertaken by a project. Examples would include loan/credit funds and
staff.

Output The supply-side deliverables, including the events, products, capital goods
or services that result from a development intervention (e.g. construction of a
school).

Outcome A project outcome is the uptake, adoption or use of project outputs by
the project bene

ciaries (OPCS 2007 ).

Impact The long-term effects of a development intervention.

c good or service) and an out-
come is that an output typically is a change in the supply of goods and services
(supply side), while an outcome re

The key distinction between an output (a speci

ects changes in the utilization of goods and

services (demand side).

3.1 Background

For many years, development efforts were focused on providing finance to pay for

the procurement and construction of infrastructure and services that were supposed
to produce certain expected results. Although the instruments offered evolved over
time, they remained mostly focused on

that would lead to
economic development for the client countries and a way out of poverty for their
peoples.

financing the ' inputs '