Final Results of the World's First Development Impact Bond
July 12, 2018
IDinsight conducted a rigorous three-year impact evaluation of Educate Girls’ program in Rajasthan’s Bhilwara district to determine outcome payments in the Educate Girls Development Impact Bond (EG DIB).
Nearly three million girls, aged 6 to 14, are out of school in India. Even if enrolled in school, many students are not acquiring foundational skills like reading and basic arithmetic that can help them progress in school and life.
Educate Girls, a Mumbai-based NGO, trains community volunteers to encourage families to enroll their girls in school by making door-to-door household visits and to deliver a child-friendly supplementary curriculum in classrooms to improve basic reading and math skills. Educate Girls currently operates in over 12,000 villages and 21,000 primary schools across 15 districts in Rajasthan and Madhya Pradesh.
A Development Impact Bond (DIB) has been set up to finance Educate Girls’ program in Bhilwara district, Rajasthan. DIBs are a new tool for financing social programs in which an investor provides capital up-front to a service provider and earns a return from a donor based on the effectiveness of the program. By shifting the focus from inputs to outcomes and incentivizing service providers to improve programs, DIBs hold the potential to make social programs more cost-effective. The lessons from this world’s first DIB are informing the viability and design of future results-based financing models.
Educate Girls surpassed the DIB targets for both learning gains and enrollment. Students in program villages gained an additional 8,940 ASER learning levels relative to students in control villages, surpassing the learning target set by the Development Impact Bond by 60%. The effects of Educate Girls’ program on learning gains were large and statistically significant over the three-year program: Students in EG schools gained on average an additional 1.08 learning levels, or 28% and 0.31 standard deviations, compared to students in control schools. By the end of the three-year project, Educate Girls had enrolled 768 out-of-school girls, representing 92% of all identified out-of-school school girls eligible for enrollment. Educate Girls thus exceeded the enrollment target of 79% by 16%.
 Source: http://www.educategirls.in/What-We-Do.aspx#current-situation