Impact Bond in Education are Effective. How do we Scale them?
Prachi Windlass and Samar Bajaj of Michael and Susan Dell Foundation write about what drove the exceptional performance of the QEI DIB in its first two years.
The Quality Education India DIB will help hundreds of thousands of children get the education they need to succeed.
India has made enormous progress in education to achieve a 99% rate of primary school access.
The Sustainable Development Goals have now focused attention on improving the quality of education to ensure that children in school are actually learning.
The 2018 ASER survey indicates that the average Grade V student in India is at least two years behind in grade appropriate learning.
The Quality Education India Development Impact Bond (DIB) supports Indian education providers to improve learning outcomes for primary school children through an innovative results-based funding mechanism.
Over four years, the Quality Education India DIB will enable approximately 200,000 children to improve their literacy and numeracy, contributing to a significant improvement in their life chances, and providing them with the skills to bring themselves out of poverty.
Improve literacy and numeracy skills for primary school children by tying funding to learning outcomes.
Increase the amount of private, philanthropic, and public funding allocated to outcomes-based development initiatives.
The Quality Education India DIB is the largest education DIB in the world, and the first to bring together a broad coalition of private, not-for-profit, and public sector partners. This diverse partnership delivers the scale and expertise needed for the DIB to achieve its ambitious objectives.
How the Quality Education India DIB works
The DIB is a results-based finance mechanism, so the outcome funders only pay for successful results. If the target outcomes are not achieved, the funders do not pay.
The learning outcomes to be measured are agreed upon at the outset and independently verified. This applies efficiency and discipline to development funding.
The risk investor provides working capital to enable the implementing partners to deliver education interventions. The investor will recover its initial investment and earn a return if the interventions achieve their target outcomes. This return will be reinvested elsewhere for social good.
The DIB’s focus on outcomes transforms the traditional approach to grant-making and philanthropy. Every partner in the DIB is incentivised to achieve learning outcomes, not just deliver services. The result is maximum impact for money spent.