Development Impact Bonds (DIB) are an innovative mechanism whereby investors provide finance for social interventions in developing countries. Money is channeled to local public and private service providers. Once independently verified evidence shows that results have been achieved, the government repays the investors their principal plus a financial return linked to performance.
Wellspring consulted for Social Finance on DIB options for reducing sleeping sickness in Uganda. Our recommendations focused on practical measures for engaging a broad range of local private and public partners in order to a) deliver the public funded campaign most efficiently and effectively and, b) to leverage the resources from the campaign in order to include and build up sustainable private sector agridealer service providers for ongoing provision of the necessary health products and services following the DIB funded campaign.
The latest working group report is available now from Center for Global Development and Social Finance. The report explains how DIBs work, outlines six case studies, and lays out recommendations for all the actors involved. You can find a summary of the report and its recommendations here (link to direct download)
The first SIB was launched by Social Finance UK at Peterborough Prison in
2010, and it is showing how improved results can be achieved (in this case, reductions in
reoffending) by orienting programmes toward outcomes and creating a space in which public
services can make better use of evidence, innovation and adaptation.