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The government of Washington DC recently announced plans to launch its first Social Impact Bond (SIB), an innovative finance approach that in this case will be aimed at reducing teen pregnancy and improving educational outcomes for teenagers.
If one thing was clear at the first High Level Meeting of the Global Partnership for Effective Development Cooperation, it’s that the 1500 people in attendance— representing the governments of developing, emerging and rich countries, multilateral institutions, business, philanthropy, and civil society—were not interested in how aid can be delivered more effectively from rich to poor countries but how the wide and growing range of actors who contribute to development can work together more effectively.
Government, business, and civil society leaders are exploring how they can use Development Impact Bonds to catalyze development, according to UK Secretary of State for International Development Justine Greening.
Development is a risky, complex business. So it’s not surprising that development experts sometimes question why private investors would choose to invest in Development Impact Bonds (DIBs), a new model for funding and designing programs that address such seemingly unprofitable problems like disease burden or poor education outcomes.