Development Impact Bonds Working Group
The Center for Global Development, in partnership with the UK-based organization Social Finance, has formed a working group to explore a new development financing mechanism, Development Impact Bonds (DIBs). DIBs would provide upfront funding for development programs by private investors, who would be remunerated by donors or host-country governments—and earn a return—if evidence shows that programs achieve pre-agreed outcomes.
The Development Impact Bonds Working Group will examine contexts in which this new mechanism could be applied, with the aim of establishing a business model to be initially tested in two to three settings.
The idea is based on the model of Social Impact Bonds, recently piloted in the UK as a way to shift incentives and accountability to results, transfer performance risk to the private sector, and increase efficiency in program implementation. The Development Impact Bonds Working Group will investigate whether a similar model can be used to improve international development outcomes and will produce recommendations for the design of Development Impact Bonds.
Co-Chairs
Owen Barder, Center for Global Development
Toby Eccles, Social Finance
Elizabeth Littlefield, Overseas Private Investment Corporation
Members
Bob Annibale, Citigroup
Vineet Bewtra, Omidyar Network
Nancy Birdsall, Center for Global Development
Chris Egerton Warburton, Lion’s Head Capital Partners
Rebecca Endean, UK Ministry of Justice
Stefan Isaksson, Swedish Ministry of Foreign Affairs
Kippy Joseph, Rockefeller Foundation
Dan Kress, Bill & Melinda Gates Foundation
Susan McAdams, World Bank
Steve Pierce, USAID
Oliver Sabot, Clinton Health Access Initiative
Sonal Shah, Board Member Social Finance US/Independent
Smita Singh, Independent
Rachel Turner, UK Department for International Development
Peter Wheeler, Board Member Social Finance UK/Independent
Resources
- DIB Presentation for RBF Interagency Working Group
- DIB Briefing Note for DAC Senior Level Meeting
- DIB Working Group Briefing Note
- DIB Working Group Meeting 1 Presentation
- DIB Working Group Meeting 2 Presentation
Blog Posts and Media Mentions
- Blog Post: Why Development Impact Bonds?
- Wonkcast: Development Impact Bonds – Elizabeth Littlefield and Toby Eccles
- BBC Interview with Owen Barder: "Development Impact Bonds: A Sound Investment"
- Blog Post: "What if You Could Invest in Development?"
- Blog Post: "Doing Well While Doing Good?"
To sign up for email updates or share feedback, please write to Rita Perakis, program associate, at rperakis@cgdev.org.