What is the track record of using anti-corruption or related governance indicators in incentives schemes? What has worked in focusing attention on key priorities and what has not worked (e.g. either because the focus was wrong or the milestones proved too difficult to measure)?
Conditionality mechanisms such as incentive programmes can work as a means of bolstering policy changes, signalling particularly important reforms and stiffening the resolve of reformers. Governance and corruption indicators can play an important role in assessing eligibility and monitoring progress in performance-based aid disbursement projects. Research reveals that performance monitoring in incentive programmes are still largely absent and donors tend to rely on existing, broader, governance assessment tools.
Nawaz, F. Use of governance and corruption indicators in incentive programmes. U4 Anti-Corruption Resource Centre, CMI, Bergen, Norway (2011) 7 pp. [U4 Expert Answer 269]