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Views from the Center

CGD experts offer ideas and analysis to improve international development policy. Also check out our Global Health blog and US Development Policy blog.

 

Four Challenges for Blended Finance and Development Finance Institutions

Overseas development assistance amounts to about $135 billion dollars annually, but the cost of paying for the Sustainable Development Goals will be in the trillions. As a result, blended finance is something of a buzz phrase these days. I left a workshop on blended finance last week in Paris excited about the potential of these new structures and instruments to deliver social returns. But I was also struck by the challenges DFIs and their advocates must overcome in order to fully realize that potential. 

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.

Strange Football: Education Programs Rarely Keep Score

“Is learning the only result worth financing in education?” That was the question posed to me at a recent World Bank debate about results-based financing in education. The question is germane because the World Bank has a large program of results-based financing in health and a new modality of Program for Results lending operations, and it is negotiating a new trust fund for performance programs in education.