
Peru
Democracy and Governance
Training newly-elected mayors to strengthen local governance in Peru
Impact
News and Insights
With the “Supporting Teacher Achievement in Rwandan Schools” (STARS) project, a research team, in collaboration with Rwanda’s Ministry of Education and Innovations for Poverty Action, tested new models of performance-based pay contracts for three years in public primary schools, designed to motivate teachers and reward their efforts, in order to identify the most effective contract. FID is now supporting the scale-up of this contract across 30 Rwandan school districts, covering around 3 500 primary and secondary schools.
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Over the past twenty years, Rwanda has significantly expanded access to primary education. The primary school completion rate now exceeds 80%, reflecting the government’s substantial investments in education (World Bank, 2024).
This achievement comes with a major challenge: ensuring that all students actually learn. National assessments show that a significant share of students do not master the foundational reading and mathematics skills expected by the end of primary school. Learning gaps are particularly large in low-income school districts, with consequences extending far beyond the classroom, as these gaps account for 20–50% of income differences across countries (Angrist et al., 2021). This widely documented “learning crisis” has now become one of the main priorities of Rwanda’s education policy.
At the same time, the education system faces significant teacher turnover: around one in five teachers leaves the profession every year (Zeitlin, 2020; World Bank, 2024). This makes it essential to develop mechanisms that can strengthen teacher motivation, improve teaching practices and better track student progress.
Rwanda has had a performance-based contract system for public employees, including teachers, since 2006. However, these contracts rely on criteria that are not sufficiently objective and do not effectively reward teachers’ efforts.
A growing body of evidence suggests that performance contracts can improve student learning outcomes in a range of countries, including India, Israel, Tanzania and Uganda. In Rwanda, an earlier randomized evaluation conducted by Innovations for Poverty Action and the Rwanda Education Board (Leaver et al., 2021) showed at small scale that a contract based on teacher attendance, lesson preparation and teaching practices could significantly improve student learning, with gains equivalent to nearly one additional year of learning (Crawfurd, 2021).
The STARS project builds on these initial results and aims to strengthen Rwanda’s national performance contract system (imihigo). Over three years, it rigorously tested several contract variations, including measures of student learning progress alongside existing criteria, in order to identify the most effective combination for improving teaching practices and student learning. The project also strengthened CAMIS, the national assessment management system, to improve the quality of the data used to measure student learning and manage performance contracts.
FID is supporting this process over the long term: after funding the three-year testing of different contract models and the strengthening of the data infrastructure, it is now supporting the national scale-up of the selected model.

Results of the first phase (2022–2025)
Teachers who signed the new performance-based pay contracts improved their working practices, with increases in lesson plan availability ranging from 10 to 16 percentage points, depending on the contract model tested, and improvements in pedagogy scores ranging from 0.10 to 0.26 standard deviations. No significant effect was observed on teacher attendance, which was already high at baseline.
Three of the six contract models tested had positive and significant impacts on student learning outcomes. The model that added performance incentives for school head teachers to the base model - linking part of their assessment to the performance of teachers in their school - had the largest impact on teaching practices and student learning. It was therefore selected for national scale-up.
Finally, the STARS contracts also appear to increase participation in the national CAMIS system (+2 to 3 percentage points, depending on the contract model, by the end of the third year), helping to provide more complete and nationally representative data on student learning.
For more information on the learning outcomes and policy implications of the STARS project, see the full article on the STARS project (available here).
The results of the first phase have led the Rwandan government to launch a new stage of the programme. The best-performing contract model, which combines incentives for teachers and school head teachers, is now being progressively rolled out nationwide while continuing to be evaluated.
Supported by FID, this new phase is extending the model to approximately 3,500 primary and lower-secondary schools, 88,000 teachers and 3.2 million students, while continuing evaluations to optimize implementation and cost-effectiveness.
Projects
Projects funded by FID

Peru
Democracy and Governance
Training newly-elected mayors to strengthen local governance in Peru

India
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