Could COD Aid be directed to state or local governments?
Yes. A country receiving COD Aid at the national level could decide to channel progress-based funds to the state or local level. Donors could also consider making arrangements for COD Aid with governments at the sub-sovereign level, such as state governments. However, this latter approach would require careful assessment of the impact on national level policies, interregional equity, fiscal responsibility and population movements, as well as the contract’s feasibility in terms of progress measures and audits.