Wouldn’t this money just replace money donors would have disbursed through other aid mechanisms?
COD Aid represents a way to spend additional funds that donors have already pledged for poor countries as a part of commitments to “scale up aid.” Donors would agree as a part of the contract to treat the progress-based funds as additional, and to abide by all existing commitments. More importantly, however, this issue would only arise if the country were very successful in improving educational outcomes, in which case donors are likely to want to give a country more money, not less, anyway.
