On June 29, the Center for Universal Education at Brookings hosted the partners of the world’s first development impact bond (DIB) for education for a lively discussion of the learnings and results from the second year – and mid-point – of the world’s first development impact bond. The impact bond provides financing for Educate Girls, a non-profit that aims to increase enrollment for out-of-school girls and improve learning outcomes for girls and boys in Rajasthan, India. The UBS Optimus Foundation has provided upfront risk capital to Educate Girls and, contingent on program targets being met, will be paid back their principal plus a return by the Children’s Investment Fund Foundation. Instiglio, a non-profit organization specializing in results-based financing mechanisms, serves as the program intermediary.
The webinar explored the experiences of the key stakeholders, the factors affecting the mid-point results, the key learnings, and ways these will inform the development of the programs it moves forward. In what promises to be a lively debate the partners will share both positive and negative learnings to start a transparent discussion of the model and where, and how, it can be most effective. For further background on impact bonds as a financing mechanism for education and early childhood development in low- and middle-income countries, please see the Center for Universal Education’s report, as well as the landscape report on the lessons from the first five years of impact bonds.