Development Impact Bonds (DIBs) are a performance-based investment instrument intended to finance development programmes in low resource countries, which are built off the social impact bond (SIB) model. DIBs bring together private investors, non-profit and private sector service delivery organizations, governments and donors to deliver results that society values. They provide upfront funding for development programs by private investors, who are remunerated by donors or host-country governments-and earn a return-if evidence shows that programs achieve pre-agreed outcomes.
This is how the Educate Girls' DIB works:
A socially motivated investor - the UBS Optimus Foundation (UBSOF) puts in the working capital, so the service provider Educate Girls can begin its work on the ground. An outcome payer Children's Investment Fund Foundation (CIFF) promises to pay back the investor UBSOF the original amount plus extra returns as long as the agreed targets are delivered by the service provider Educate Girls. The targets are focused on increased enrollment of marginalized girls and the children's progress in literacy and numeracy outcomes, which will be assessed by an independent evaluator over the course of the three years tenure.
The Educate Girls DIB program works with 166 schools across 140 villages in Bhilwara, India, and aims to benefit 15,000 children!
First-Year DIB Results Are In !
⚫ The program has been successful in enrolling 44% of all identified out-of-school girls.
⚫ Educate Girls' intervention has improved girls' literacy & numeracy levels by 30% in the DIB target area in Bhilwara, Rajasthan, India.
⚫ The DIB is on track to reach its 2018 goals, with 23% of the total target for learning progress achieved.
⚫ Year 1 DIB results show great financial returns for UBS Optimus Foundation - they must have recouped 40% of the initial investment already!
Media Links : Devex 05/07/16 | The Guardian | Instiglio.org | Brookings 18/07/16 | Alliance Magazine | The Hill | Public Finance International | Devex 08/07/16 | ODI.org | Brookings 05/07/16