Why RBF works
RBF has four key strengths:
- Targeting underserved populations: RBF incentivizes service providers to deliver where needs are greatest.
- Flexibility in implementation: Local actors can adapt interventions to the specific challenges of their communities.
- Capacity building: Implementing RBF helps local governments and service providers improve monitoring, evaluation, and overall management skills.
- Closing financing gaps: By linking payments to results, RBF attracts more funding and ensures accountability.
For example, the World Bank’s Program for Results (PforR) in Uganda provided financial incentives to municipalities hosting large numbers of refugees. The program helped to improved urban infrastructure and services in refugee-hosting areas while also strengthening local governments’ capacities to manage the influx of people. This dual impact—better services today and stronger systems for tomorrow—demonstrates the potential of RBF.
The real-world impact of RBF
- In Yemen, years of conflict have created one of the world’s most severe humanitarian crises, displacing 75% of the population. A GPRBA-supported RBF initiative improved solid waste management in three Yemeni cities—Sana’a, Aden, and Al Mukalla—by linking payments to measurable outcomes, like better waste collection and more women in technical roles. This project not only tackled immediate public health risks but also strengthened local capacity to manage services more sustainably.
- In Colombia, another RBF program designed by Instiglio, USAID, Fundación Santo Domingo, and the Barranquilla Mayor’s Office is working to improve maternal health for pregnant Venezuelan migrants arriving in Barranquilla. Local healthcare providers are receiving financial incentives to ensure displaced women get prenatal care, aiming to improve health outcomes for both mothers and babies.
- In Kenya, the International Finance Corporation (IFC)’s Kakuma Kalobeyei Challenge Fund used a similar results-based approach to attract businesses to a refugee-hosting community. By offering performance-based grants, the fund drew in private and social enterprises, creating jobs and livelihood opportunities for both refugees and host residents.
Looking ahead
The 21st replenishment of the International Development Association (IDA21), finalized in December 2024, has laid the groundwork to expand RBF. By funding critical urban infrastructure and prioritizing social cohesion, IDA21 is set to help cities become more resilient to displacement and other crises.
Urban forced displacement is one of the defining challenges of our time. As cities grapple with how to integrate millions of new residents, they need tools that drive results, build capacity, and target resources where they’re most needed. RBF offers a model for tackling these challenges while creating long-term opportunities for everyone involved.
The future of our cities depends on finding solutions that work for all residents. With RBF, we are not just addressing the symptoms of urban displacement—we are building stronger, more inclusive cities for the future.
