The Caribbean Development Bank (CDB) allocates its single largest source of concessionary resources, the Special Development Fund (Unified) [SDF (U)], among member countries according to a performance-based allocation (PBA) formula that measures country need and country performance. The objective is to strengthen development results by targeting needs, placing resources where they are likely to be effective, and giving member countries an incentive to perform well. Since resources are at stake, PBA is, ideally, a strong form of “policy dialogue” between the Bank and member countries.