Wouldn’t this money just replace money funders would have disbursed through other aid mechanisms?
COD Aid represents a way to spend additional money that funders have already pledged for poor countries as a part of commitments to “scale up aid.” Funders would agree as a part of the contract to treat the progress-based funds as additional, and to abide by all existing commitments. More importantly, however, this issue would only arise if the country were very successful in improving outcomes, in which case funders are likely to want to give a country more money, not less, anyway.
