Approaches to results-based funding in tertiary education

"Unrealized potential exists for increasing accountability and transparency in Chilean tertiary education by allocating resources based on achieved results rather than historical precedence and political negotiation. Against this background, Thorn, Holm-Nielsen, and Jeppesen profile approaches to results-based funding of tertiary education to identify efficacious finance reform options for Chile. International experience shows that financing by results is not a ready-made concept, but a broad label that offers a menu of design options. To decipher results-based funding, the authors cover all phases in designing and implementing a results-based funding system and highlight strengths and weaknesses of concepts, such as taximeter funding, performance contracts, and formula-based allocations. This paper--a product of the Human Development Department, Latin America and the Caribbean Region--is part of a larger effort in the region to increase accountability for results"--World Bank web site.