Development is a risky, complex business. So it’s not surprising that development experts sometimes question why private investors would choose to invest in Development Impact Bonds (DIBs), a new model for funding and designing programs that address such seemingly unprofitable problems like disease burden or poor education outcomes.
CGD Policy Blogs
How NGOs and service delivery organisations can be empowered by better use of data to improve public service delivery.
Some thoughts-in-progress: if you are going to provide a public subsidy to the private sector, is it nearly always better to amplify the returns than to reduce their risks?
This blog was originally posted on March 7, 2011.
Regulators at the Bank for International Settlements (BIS) in Basel, Switzerland, are hard at work designing regulatory standards to avoid future financial meltdowns like the global financial crisis of 2008. Joining them for two months is Liliana Rojas Suarez, a CGD senior fellow and the founding chair of the Latin American Shadow Financial Regulatory Committee.
Duncan Green recently took on the subject of Development Impact Bonds and impact investing in this blog post, and raised a few reasons for skepticism. As he anticipated, we didn’t really agree with the concerns that came up and wanted to explain why.