Impact bonds in developing countries: Early learnings from the field
During UNGA week Convergence and the Center for Universal Education at the Brookings Institute launched the report Impact Bonds in Developing Countries: Early learnings from the field. This is the first report to take stock of the current state of impact bonds in developing countries – who’s doing them and where, the challenges and obstacles they face, and where we need to go from here.
While remarkable progress has been made in human development indicators in recent decades, significant global challenges remain. Over 800 million people are living on less than $1.25 a day and 263 million children and young people are out of school. The United Nations’ sustainable development goals (SDGs) outline an ambitious global agenda for ending poverty and hunger, ensuring good health and quality education, and promoting jobs and reduced inequalities. However, governments and multilateral organizations will face considerable challenges achieving these aims. In education alone, the Education Commission in 2016 estimated a funding gap of $1.8 trillion per year to ensure quality education for all children.
Achieving the SDGs will require governments and multilaterals to develop and apply innovative financing tools to make the best use of existing funds. Results-based financing represents one tool that governments and multilaterals can use to ensure that funds are directed most effectively toward populations in need.
Photo courtesy of AMISOM Public Information.