To sustainably improve the livelihoods of people living in extreme poverty in Burkina Faso, Instiglio designed a set of performance-based contracts between Trickle Up and community-based organizations. We collected insights during field research and analysed the design of the program and its delivery features, in order to recommend design choices related to: financial incentives for the implementers, program flexibility, payment metrics, verification mechanism, and payment structures.
Country
Burkina Faso
Timeline
2015
Type of Project
RBF Design or Implementation
Sector
Poverty Alleviation
Project
Partners
project description
Trickle Up works through local community-based organizations who work with individuals and families in these communities to sustainably improve their livelihoods. The program is based on the Graduation Approach, which combines seed capital, savings, skills training, coaching, confidence-building and social support.
- In Burkina Faso, approximately 6.7 million men, women, and children live on less than a $1.25 a day.
- In the communities where Trickle Up operates, close to 80% of the population live in extreme poverty.
- Trickle Up wants to scale up its program by partnering with local Community Based-Organizations (CBOs).
- They struggle everyday to put food on the table, send their kids to school, and get medical treatment.
Trickle Up is partnering with three community-based organizations to deliver its program under a results-based financing model. After reaching the specific target outcomes around improving the economic stability of their participants, the community-based organizations will receive a monetary bonus.
Instiglio provided technical assistance in the design of a Performance-Based Contract (PBC) between Trickle Up and CBOs as a model to improve the cost-effectiveness of their partnership, since it grants more autonomy to the CBOs while offering incentives to achieve better program outcomes.
Instiglio conducted field research in Burkina Faso to study the design and implementation of the program. We collected insights during a field visit where we studied the design of the program and its delivery features, in order to recommend design choices related to:
- financial incentives for the implementers,
- program flexibility
- payment metrics
- verification mechanism
- payment structure
These insights were used to create a PBC design proposal, which lent consideration to financial incentives for the implementers and program flexibility, as well as recommended core design components, like
- payment metrics
- the results verification mechanism
- the payment structure
The main goal of this project is to ensure that results in the livelihoods of people living in extreme poverty can be achieved across a variety of contexts. This project tested whether a Performance-Based Contract, which provides incentives and autonomy to local implementers, is a cost-effective way of scaling Trickle Up’s program.
