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Independent research for global prosperity

Development Impact Bonds

Development Impact Bonds (DIBs) finance development programs with money from private investors who earn a return if the program is successful, paid by a third-party donor. The outcomes to be measured are agreed upon at the outset and independently verified. With greater focus on outcomes instead of inputs, DIBs create space for more innovation, local problem-solving, and adaptation. CGD and Social Finance UK jointly convened the Development Impact Bond Working Group and released a seminal report about the rationale for, and technical design of, Development Impact Bonds and how to create a market for this approach. 

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Blog Post

In 2013, a CGD working group signaled important benefits of development impact bonds, and worked through some of the “how-to” of design and implementation. Yet five years later, only three development impact bonds have launched.

Blog Post

OPIC recently announced it will invest $2 million in a Development Impact Bond (DIB) aimed at improving the availability and quality of cataract surgery services in Cameroon. 

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