Learning from the experience of vertical funds
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International Food Policy Research Institute
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The paper reviews lessons from the experience of vertical funds—multistakeholder programs that provide earmarked funding for specific purposes—and their implications for scaling up initiatives in agriculture, rural development, and nutrition. While such funds have demonstrated strengths, including a strong focus on results, transparency, innovation, and the inclusion of diverse stakeholders, they can also create challenges such as fragmentation, duplication, and misalignment with national priorities. The authors emphasize that the creation of new vertical funds should be carefully evaluated against existing institutional arrangements, and that strengthening current mechanisms may often be more effective than establishing new ones.
Drawing on experiences from programs such as the Global Fund and the Scaling Up Nutrition (SUN) movement, the paper outlines key design and implementation lessons. These include the importance of using existing institutional capacity, ensuring adequate and predictable financing, establishing effective governance structures, managing risks transparently, and maintaining a strong focus on country-level impact. It also stresses the need to align incentives, avoid unrealistic expectations, and prioritize sustainable results rather than short-term gains. Overall, the paper concludes that careful institutional design, coordination, and alignment with national systems are essential for achieving effective and scalable development outcomes.
Palabras clave
scaling up, agriculture, rural development, nutrition, tuberculosis, hiv infections, malaria, funding