For example, right now the Department for International Development in the United Kingdom is engaging with the Ethiopian government. Essentially, Ethiopia has agreed to graduate x number of girls and boys from secondary school, and they need to pass a standardized test in order to have that graduation. Once they achieve their baseline numbers over a course of five years, the donor, the British government in this case, would provide payment.
The interesting innovation in how this is being done is it puts a great emphasis on the local government, in this case Ethiopia, to manage as it sees fit to achieve that goal, quite frankly without a lot of meddling and bureaucratic involvement from the U.K. government. It empowers and puts the responsibility on the Ethiopian government to achieve that goal. If they achieve it, the British government will provide transfer payments. If they don't, the British government won't.