Publisher: Center for Global Development
This report addresses the how of next generation financing models—that is, the concrete steps needed to change the basis of payment from expenses to something else: outputs, outcomes, or impact.
Part I offers a conceptual framework that explains why traditional grantmaking often gets the incentives wrong, why that matters, and how next generation financing models might offer a way for the Global Fund and other health funders to increase the value for money of their investments. It also describes the growing use of incentives at the Global Fund and elsewhere, including the current incentives embedded within Global Fund grants.
Part II discusses contexts where a move to next generation grant models could drive faster impact or other benefits for the Global Fund and describes the technical elements and design choices required to bring them to life.
Part III “puts it all together,” providing four illustrative examples of how next generation grants could be designed and applied within the Global Fund’s grant portfolio.