- Published by
- MEDA
This report explores the effectiveness of Pay-for-Performance (P4P) models in fragile environments, drawing on the experience of MEDA’s Atteindre project in Haiti.
Unlike traditional grants, P4P ties funding to verified outcomes - such as MSMEs supported, capital mobilised, and jobs created - rather than planned activities. In Haiti, this approach led to impressive results: 25,000+ MSMEs reached, 4,121 jobs created, and $14 million in private capital mobilised from just $1.2 million in incentives, with 73 per cent of beneficiaries being women-led businesses.
The report concludes that P4P works because it trusts local actors, rewards results over compliance, and adapts effectively to volatility.
In fragile states where traditional aid often stalls, performance-based models offer a smarter, more resilient alternative. MEDA argues that donors should not lower ambition in fragile settings but upgrade their tools - shifting from rigid grants to dynamic, outcomes-driven approaches that strengthen local systems and reward impact.