Access to high-quality, affordable early childhood education is a crucial foundation for future learning and success. The Collective Learning Initiative (CLI), led by the GO Lab and NORRAG, examines innovative funding models that tie resources to outcomes and enhance the quality, efficiency, and availability of early childhood care and education (ECCE).
The goal is to help shape better approaches to funding ECCE programmes. Commissioned by the Education Outcomes Fund (EOF) in 2024, the Collective Learning Initiative buildings and strengthens connections between stakeholders at the intersection of outcomes-based financing (OBF) and early childhood education and care (OBF4ECCE). Together, we are building a community where researchers, policymakers, and practitioners exchange insights, refine approaches, and develop practical solutions.
Over the past year, this community has expanded global knowledge on OBF in ECCE through workshops, interviews, shared reflections, and publications. So far, we have produced a comprehensive evidence review covering 22 initiatives, a practical guide on measuring ECCE outcomes, two new case studies from Chile and the U.S., several workshops for knowledge exchange, and four pipeline projects. On June 18, 2025, in the 4th Knowledge Exchange session, practitioners and researchers working in ECCE and OBF came together to discuss what is needed in the field to ensure that OBF models improve financing for quality ECCE. This knowledge exchange session invited participants to reflect on recent shifts and tackle persistent challenges in implementing OBF in complex, fragmented real-world ECCE systems with weak data infrastructure, rigid contractual structures, and low operational capacity. This document is a synthesis of the discussion and insights that came out of the session.
The session’s breakout groups tackled four big themes. Click each dropdown to discover the insights:
One of the clearest takeaways was that high-quality, equitable ECCE is impossible without coordination and inclusive design. Many countries have multiple ministries, agencies, and private providers working with disconnected standards, budgets, and goals, making it hard to deliver consistent results for children. The community highlighted several practical ways to close these gaps:
Overall, there was a broad agreement that outcomes-based finance can help tie all this together by aligning fragmented actors around measurable goals, driving accountability and shining a light on where coordination still needs to improve.
There was a recognition that it can be tempting to work around weak government systems by setting up parallel OBF projects. While working outside the government system might deliver seemingly quick wins, it risks undermining scale and long-term sustainability. Governments remain essential for reaching children equitably, yet public finance systems are not always set up for performance-based models. This tension makes it even more important to work with governments, not around them. Practical recommendations include to:
The conclusion was that long-term success hinges on strengthening public systems, not creating parallel structures that undercut national ownership.
OBF can push broader reform but only where it is intentional and embedded in public systems for the long term. OBF can support reforms like:
However, system reform means transaction costs, political ups and downs, and sometimes slow progress. The community called for better documentation of what works and also honest narratives that manage expectations about what OBF can realistically deliver.
In fragile or under-resourced settings, it was emphasised that flexibility is vital, however it must be balanced with clear standards to avoid unintended costs or declines in quality. Designing flexible yet credible models involve:
The community stressed that lasting change requires trust, patient partnerships, and realistic expectations. Without investment in coordination, regulation, and learning, OBF risks staying stuck at pilot stage rather than transforming entire systems.
Challenging assumptions about flexibility, private financing, and governments brought into sharper focus to the reality that OBF is not a catch-all “solution”. However, with thoughtful design, government buy-in, and strong local partnerships, OBF can help align fragmented actors, boost accountability, and drive real improvements in how children, caregivers and families experience care and learning. For everyone working to expand access to quality ECCE, the message is simple: no one can go it alone. Building fair, effective and holistic systems for young children demands shared vision, clear outcomes, and a commitment to learning and adapting together.Still, open questions remain on co-funding, evidence-sharing, balancing investor participation, and amplifying underrepresented voices. CLI’s next steps include deepening shared learning, refining practical guidance, and strengthening collective capacity to use OBF not just as a project tool, but ensure that it creates a pathway for lasting, equitable system change in early childhood care and education.
Join us online on 21 October at 10:30am to explore how outcomes-based financing is being applied in early childhood care and education, with real-world insights from global projects and discussion of key gaps like cost-effectiveness and holistic outcomes.