paying for outcomes in service delivery: impact bonds · presentation prep – go lab 2019 author:...

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Paying for outcomes in service delivery: Impact bonds Dr. Emily Gustafsson-Wright Fellow, Brookings Institution

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Page 1: Paying for outcomes in service delivery: Impact bonds · Presentation Prep – GO Lab 2019 Author: Onyeka Nwabunnia Created Date: 11/1/2019 9:35:29 AM

Paying for outcomes in

service delivery: Impact

bonds

Dr. Emily Gustafsson-Wright

Fellow, Brookings Institution

Page 2: Paying for outcomes in service delivery: Impact bonds · Presentation Prep – GO Lab 2019 Author: Onyeka Nwabunnia Created Date: 11/1/2019 9:35:29 AM

IMPACT BONDS PRIMER

Page 3: Paying for outcomes in service delivery: Impact bonds · Presentation Prep – GO Lab 2019 Author: Onyeka Nwabunnia Created Date: 11/1/2019 9:35:29 AM

RESULTS-BASED FINANCING

Funding is tied to pre-agreed and verified results

Results Based Aid

Development Impact Bond

Social Impact Bond

Performance Based Loan

Performance Based Grant

Prize Based Challenge

Performance Based Contract

Source: Instiglio

Page 4: Paying for outcomes in service delivery: Impact bonds · Presentation Prep – GO Lab 2019 Author: Onyeka Nwabunnia Created Date: 11/1/2019 9:35:29 AM

IMPACT BONDS: CONFLUENCE OF 3 THINGS

Page 5: Paying for outcomes in service delivery: Impact bonds · Presentation Prep – GO Lab 2019 Author: Onyeka Nwabunnia Created Date: 11/1/2019 9:35:29 AM

BASIC STRUCTURE OF AN IMPACT BOND

1. The investor provides upfront capital to the service provider to deliver services to a population in need.

2. An independent evaluator verifies whether the service provider has achieved pre-agreed impact metrics

3. The outcome funder (Govt if SIB and 3rd party if DIB) repays the investor if the metrics are achieved.

Page 6: Paying for outcomes in service delivery: Impact bonds · Presentation Prep – GO Lab 2019 Author: Onyeka Nwabunnia Created Date: 11/1/2019 9:35:29 AM

GLOBAL LANDSCAPE (AS OF OCTOBER, 2019)

Page 7: Paying for outcomes in service delivery: Impact bonds · Presentation Prep – GO Lab 2019 Author: Onyeka Nwabunnia Created Date: 11/1/2019 9:35:29 AM

168 IMPACT BONDS CONTRACTED GLOBALLY

ACROSS 30 COUNTRIES

Source: Brookings Global Impact Bond Database, October 2019

1-2

3-15

16+

Page 8: Paying for outcomes in service delivery: Impact bonds · Presentation Prep – GO Lab 2019 Author: Onyeka Nwabunnia Created Date: 11/1/2019 9:35:29 AM

SECTORS: IMPACT BONDS CONTRACTED GLOBALLY

HEALTH

SOCIAL WELFARE

EMPLOYMENT

EDUCATION

CRIMINAL JUSTICE

ENVIRONMENT &

AGRICULTURE

Source: Brookings Global Impact Bond Database, October 2019

Page 9: Paying for outcomes in service delivery: Impact bonds · Presentation Prep – GO Lab 2019 Author: Onyeka Nwabunnia Created Date: 11/1/2019 9:35:29 AM

EXAMPLES

Page 10: Paying for outcomes in service delivery: Impact bonds · Presentation Prep – GO Lab 2019 Author: Onyeka Nwabunnia Created Date: 11/1/2019 9:35:29 AM

COLOMBIA WORKFORCE SIB

Source: SECO, 2017

Page 11: Paying for outcomes in service delivery: Impact bonds · Presentation Prep – GO Lab 2019 Author: Onyeka Nwabunnia Created Date: 11/1/2019 9:35:29 AM

EDUCATE GIRLS DIB

Source: Instiglio

Page 12: Paying for outcomes in service delivery: Impact bonds · Presentation Prep – GO Lab 2019 Author: Onyeka Nwabunnia Created Date: 11/1/2019 9:35:29 AM

SOUTH AFRICA ECD SIB

Source: Volta

Page 13: Paying for outcomes in service delivery: Impact bonds · Presentation Prep – GO Lab 2019 Author: Onyeka Nwabunnia Created Date: 11/1/2019 9:35:29 AM

The 10 Common Claims

Page 14: Paying for outcomes in service delivery: Impact bonds · Presentation Prep – GO Lab 2019 Author: Onyeka Nwabunnia Created Date: 11/1/2019 9:35:29 AM
Page 15: Paying for outcomes in service delivery: Impact bonds · Presentation Prep – GO Lab 2019 Author: Onyeka Nwabunnia Created Date: 11/1/2019 9:35:29 AM
Page 16: Paying for outcomes in service delivery: Impact bonds · Presentation Prep – GO Lab 2019 Author: Onyeka Nwabunnia Created Date: 11/1/2019 9:35:29 AM

Credit: Educate Girls

Our impact bonds research: brookings.edu/product/impact-bonds/

Contact: [email protected]

@EGWBrookings

Page 17: Paying for outcomes in service delivery: Impact bonds · Presentation Prep – GO Lab 2019 Author: Onyeka Nwabunnia Created Date: 11/1/2019 9:35:29 AM

WORKSHOP SESSION

Page 18: Paying for outcomes in service delivery: Impact bonds · Presentation Prep – GO Lab 2019 Author: Onyeka Nwabunnia Created Date: 11/1/2019 9:35:29 AM

Workshop Session: Impact bonds

What is the social challenge you are trying to resolve?

___________________________________________________________________________

What are some of the key barriers you face?

1._________________________________________________2._________________________________________________3. _______________________________________________

Q1: What is the problem you are trying to solve?

Do you think funding outcomes (not inputs) might remove

some of these barriers? Why?____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Note: Funding on outcomes could

encourage adaptability, improve data, add

accountability

Page 19: Paying for outcomes in service delivery: Impact bonds · Presentation Prep – GO Lab 2019 Author: Onyeka Nwabunnia Created Date: 11/1/2019 9:35:29 AM

Workshop Session: Impact bonds

What would success look like? What outcomes could you use

to measure it?1._________________________________________________2.________________________________________________

3. _______________________________________________

4. _______________________________________________

5. _______________________________________________

Q2: What does success look like?

Is there good (existing) data on these outcomes? Can you

access this data?____________________________________________________________________________________________________

Note: Funding on outcomes may be most

appropriate where inputs are complex and

outcomes are simple

Page 20: Paying for outcomes in service delivery: Impact bonds · Presentation Prep – GO Lab 2019 Author: Onyeka Nwabunnia Created Date: 11/1/2019 9:35:29 AM

Workshop Session: Impact bonds

Service provider landscape: Are service providers already tracking/delivering on outcomes? Do they have proven interventions?__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Q3: Does an impact bond make sense?

Do service providers need:i) Capacity-building?ii) Upfront capital to deliver

interventions?____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Note: Impact bonds typically make sense

when service providers need capital and/or

capacity building