Significant attention is paid to how policies drive outcomes in migration systems; however, there is little attention paid to how the financing models behind them influence behaviors of key actors.
Policies and regulations are important tools, but in the context of migration which by definition crosses legal boundaries, there are limitations to the effectiveness of enforcement. Where regulation is limited to what can be enforced, financing systems can be designed in creative and complex ways which reinforce policy goals by connecting payments to the desired outcomes.
In results-based financing (RBF), payments are connected to pre-agreed and verified measurable performance targets. Ideally, these targets map directly to the desired outcomes, such as well-prepared workers moving into good jobs.
RBF is a critical part of LaMP’s toolkit to improve labor mobility systems. As a tool, RBF has potential to quickly grow while helping workers, employers, governments and other labor mobility actors. RBF can:
- Reduce the burden on government systems as it increases accountability and embeds transparency without the need for increased regulation or enforcement
- Increase focus on results instead of activities and learn what actually works, encourage innovation at an individualized, localized approach to the needs of workers and employers.
- Optimize the use of commercial as well as public resources since payments are only made for successful programs.
LaMP has a large portfolio applying RBF to different challenges and contexts within labor mobility.
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