paying for outcomes in service delivery: impact bonds · presentation prep – go lab 2019 author:...
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Paying for outcomes in
service delivery: Impact
bonds
Dr. Emily Gustafsson-Wright
Fellow, Brookings Institution
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IMPACT BONDS PRIMER
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RESULTS-BASED FINANCING
Funding is tied to pre-agreed and verified results
Results Based Aid
Development Impact Bond
Social Impact Bond
Performance Based Loan
Performance Based Grant
Prize Based Challenge
Performance Based Contract
Source: Instiglio
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IMPACT BONDS: CONFLUENCE OF 3 THINGS
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BASIC STRUCTURE OF AN IMPACT BOND
1. The investor provides upfront capital to the service provider to deliver services to a population in need.
2. An independent evaluator verifies whether the service provider has achieved pre-agreed impact metrics
3. The outcome funder (Govt if SIB and 3rd party if DIB) repays the investor if the metrics are achieved.
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GLOBAL LANDSCAPE (AS OF OCTOBER, 2019)
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168 IMPACT BONDS CONTRACTED GLOBALLY
ACROSS 30 COUNTRIES
Source: Brookings Global Impact Bond Database, October 2019
1-2
3-15
16+
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SECTORS: IMPACT BONDS CONTRACTED GLOBALLY
HEALTH
SOCIAL WELFARE
EMPLOYMENT
EDUCATION
CRIMINAL JUSTICE
ENVIRONMENT &
AGRICULTURE
Source: Brookings Global Impact Bond Database, October 2019
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EXAMPLES
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COLOMBIA WORKFORCE SIB
Source: SECO, 2017
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EDUCATE GIRLS DIB
Source: Instiglio
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SOUTH AFRICA ECD SIB
Source: Volta
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The 10 Common Claims
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Credit: Educate Girls
Our impact bonds research: brookings.edu/product/impact-bonds/
Contact: [email protected]
@EGWBrookings
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WORKSHOP SESSION
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Workshop Session: Impact bonds
What is the social challenge you are trying to resolve?
___________________________________________________________________________
What are some of the key barriers you face?
1._________________________________________________2._________________________________________________3. _______________________________________________
Q1: What is the problem you are trying to solve?
Do you think funding outcomes (not inputs) might remove
some of these barriers? Why?____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
Note: Funding on outcomes could
encourage adaptability, improve data, add
accountability
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Workshop Session: Impact bonds
What would success look like? What outcomes could you use
to measure it?1._________________________________________________2.________________________________________________
3. _______________________________________________
4. _______________________________________________
5. _______________________________________________
Q2: What does success look like?
Is there good (existing) data on these outcomes? Can you
access this data?____________________________________________________________________________________________________
Note: Funding on outcomes may be most
appropriate where inputs are complex and
outcomes are simple
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Workshop Session: Impact bonds
Service provider landscape: Are service providers already tracking/delivering on outcomes? Do they have proven interventions?__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
Q3: Does an impact bond make sense?
Do service providers need:i) Capacity-building?ii) Upfront capital to deliver
interventions?____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
Note: Impact bonds typically make sense
when service providers need capital and/or
capacity building