Development Impact Bonds come at a price: private investors provide upfront funding for social interventions and expect a return, including some compensation for the risk they are taking, if outcomes are delivered. Is that price worth paying? The second meeting of the CGD and Social Finance Development Impact Bonds Working Group recently considered this question in some detail.
CGD Policy Blogs
The CGD and Social Finance Development Impact Bonds Working Group is designing a new type of investment vehicle to attract private investors who want to do good and do well while delivering development outcomes.
We can all agree that it’s unconscionable that, in 2012, there are still 1.3 billion people without access to electricity. But there’s also that pesky problem of greenhouse gases cooking our planet. So, the big question is: should we burn more fossil fuels like natural gas to help bring power to those without?
This piece originally appeared in the Financial Times on September 23, 2012 (gated) and is posted here with permission.
The Indian government’s recent reforms to reduce government subsidies and embrace greater foreign direct investment were unexpected and bold. Markets have rewarded them with surging stock prices and a rebound in the value of the rupee. The reforms may yet be reversed or diluted because of the political backlash. Their impact may be more symbolic than substantive. Nevertheless, they are significant in that they reflect changes in the operating assumptions of Indian politics.
My guest on this week’s Wonkcast is Nigel Purvis, CEO of Climate Advisors, a visiting senior associate at CGD, and the co-author of a new CGD report “Energizing Rio+20: How the United States Can Promote Sustainable Energy for All at the 2012 Earth Summit.” We spoke last Friday following the launch of the report at a CGD event that concluded with a keynote address by UN Secretary-General Ban Ki-moon.