Ideas to Action:

Independent research for global prosperity

Tag: Development Impact Bond (DIBs)

 

Envisioning Pay-for-Success: Learning from an Eye Health DIB in Cameroon

In 2013, a CGD working group signaled important benefits of development impact bonds, and worked through some of the “how-to” of design and implementation. Yet five years later, only three development impact bonds have launched. Why is this the case? Why is it so hard to get DIBs off the ground? What can we learn from the structuring and financing of DIBs to date to ease the way for future efforts?

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Despite the considerable interest in Development Impact Bonds, only a few have reached the implementation phase. We use information from stakeholder interviews to describe the design of one DIB in-depth and use lessons from a range of impact bonds to develop recommendations for potential partners to future DIBs. Lessons from the set of impact bonds reveal a need to reset expectations, particularly around the time and effort needed to develop and market a DIB. 

Another One Joins the DIB: OPIC Commits $2 Million to a Development Impact Bond on Cataract Surgery

OPIC recently announced it will invest $2 million in a Development Impact Bond (DIB) aimed at improving the availability and quality of cataract surgery services in Cameroon. Specifically, OPIC’s investment will support the Magrabi ICO-Cameroon Eye Institute, a new hospital with an efficiency and financing model based on the acclaimed Aravind Eye Hospitals, over several years. The OPIC news is particularly exciting for four reasons.

A Big, Bold Plan for MCC’s Future

After more than a decade of operations, MCC has made the shift from innovative start-up to established donor agency.  “MCC NEXT,” the agency’s new, much-anticipated strategic plan, takes a hard look at how the poverty and development landscape has evolved over the past decade and stakes out the position a more mature MCC should take in this new context. 

A Social Impact Bond without the Impact? Critics Question Success of Early Childhood Development Program

The most essential feature of a social impact bond (SIB) is measuring impact. But what happens if the impact metric is questioned or unclear? A recent dispute over measuring the impact of a SIB for early childhood development in Utah yields two important practical lessons for this innovative financing tool. First, SIB implementers should be careful not to exaggerate the precision of their success indicators. Second, they need to be clear to everyone about which objectives they are pursuing.

An Insider’s Perspective on Delivering a DIB

No one said creating development impact bonds (DIB) was going to be easy, but that hasn’t stopped the development community from trying to get them off the ground. The Fred Hollows Foundation, based in Australia, has been hard at work on a DIB to address cataract blindness in Africa. As the Foundation attracts partners to help fund and implement a pilot of the cataract bond, Dr. Lachlan McDonald, the Foundation’s senior health economist, and Alex Rankin, their Global Lead for Policy, Advocacy & Research, shared some lessons learned so far. With Lachlan and Alex’s permission, we’re turning some of those lessons over to you – we hope they’re useful to others seeking to move ahead with their own DIB.

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