ODI Logo ODI

Trending:

Trending

What we do

Search

Newsletter

Sign up to our newsletter.

Follow ODI

Understanding challenge funds

Research reports

Written by Claudia Pompa

AusAID Indonesia's ‘Supporting Indonesia’s Tertiary Education’ project builds on the lessons learned from a two-year programme of demand-driven analysis and policy engagement with the Directorate General of Higher Education, as well as independent and multi-donor analysis. In order to achieve the project objectives, AusAID will establish a competitive funding scheme aimed at channelling grants to selected institutions. Once funding has been approved, AusAID will attempt to identify common, grant-related problems and solicit solutions through a challenge fund mechanism, which will invite the private sector to submit alternative proposals to address these issues.

The research paper will answer the following questions:

• How are challenge funds structured and how do they work?
• What are the costs associated with the creation and administration of funds?
• What are the risks related to challenge funds and how can they be overcome?
• What evidence exists for the effectiveness of challenge funds and similar funding mechanisms?
• What conditions are required for a successful challenge fund?
• What lessons and best practice can be applied when establishing challenge funds?

Claudia Pompa