History
The first instance of voucher-based OBA was in South Korea and Taiwan in the 1960s. According to Malcolm Potts, these family planning initiatives were very successful. There were few such instances where OBA was used for development purposes up until the new millennium. Voucher-based health-care schemes were piloted in Latin America, Asia and Africa in the 1990s and early 2000s.
In 2002, the World Bank launched it Private Sector Development Strategy (PSD) and OBA was a key component. The World Bank has been the most active participant in OBA and in 2003, along with the UK’s Department for International Development (DFID), they launched the Global Partnership on Output-Based Aid (GPOBA). According to the GPOBA website, it is a "Partnership of donors and international organizations working together to support OBA approaches to improving service delivery for the poor."
The partnership has worked with various international partners to pursue Output-based initiatives in fields of health care, water, energy, transport, telecommunications and education. As of June 2009, GPOBA has identified 128 OBA projects around the world, with a value of 3.3 billion dollars.
The German development bank, KfW, financed multi-district pilot projects in East Africa (Kenya, Tanzania, and Uganda) and South Asia (Bangladesh and Cambodia) beginning in 2006.
Read more about this topic: Output-based Aid
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