This article analyzes the viability of utilizing a new performance-based development financing model related to funding medical equipment technology (MET) transfers to developing countries. In such an innovative model utilizing market-based incentives and public–private partnerships (PPPs or P3), social bond investors fund MET by receiving a social development ‘bond’ in exchange for a predetermined and agreed-upon amount of principal and interest to be paid only if the related MET project is deemed to satisfy certain predetermined, agreed-upon success metrics (as determined by a third party). Thus, the public sector only funds MET projects that are deemed successful based on the agreed success metric by all related stakeholders, with the MET transfer project being funded no matter what the circumstance. This performance-based model can complement existing funding models, which improves the transparency, coordination and efficacy of such MET development assistance projects in developing countries.
Bibliographical noteFunding Information:
This work was supported by the Ewha Womans University Research Grant of 2012, Global Top 5 Project (Grant No.: 2012-1777-1). The author would also like to express appreciation to professors EunMee Kim, Pil Ho Kim, Jean Kang, Minah Kang, Pilwha Chang and Jinwhan Oh, for their invaluable feedback and comments on earlier versions of this article. This article was also immensely furthered by the invaluable medical equipment technology (MET) research of Yeon-Joo Oh (Researcher at Re-shaping Development Institute; Ewha MIS).
© 2015, © 2015 SAGE Publications.
- developing countries
- market mechanisms
- medical equipment technology
- official development assistance
- performance-based assistance
- public–private social financing model