DIBs – the emerging world variation on SIBs are discussed here and indeed they have a power to render great change in an era when government spending has hit its credit limit…
Investing In Social Outcomes: Development Impact Bonds
Center for Global Development
Development finance is rapidly changing. Private financial flows and domestic revenues in developing countries are increasing, and contributions from new development partners, development finance institutions, and philanthropic organizations are on the rise. These new sources of finance and expertise complement traditional development cooperation and are creating opportunities for new partnership that make the best use of what each has to offer.
This report explains how Development Impact Bonds (DIBs) can increase the efficiency and effectiveness of development funding. Based on Social Impact Bonds in industrialized countries, a DIB creates a contract between private investors and donors or governments who have agreed upon a shared development goal. The investors pay in advance for interventions to reach the goals and are remunerated if the interventions succeed. Returns on the investment are linked to verified progress.