Development Impact Bonds (DIBs) are a new and potentially exciting aid
instrument. They are recognised by DFID as one of three different types
of Payment by Results (PBR), alongside results-based aid (RBA) and
results-based financing (RBF). These instruments differ primarily in
terms of who receives payment from the outcome or ultimate funder, for
example, DFID. In a Development Impact Bond, the funder, e.g. DFID,
makes the payment to an investor who would have pre-financed the
provision of services through the activities of a service provider
supported, in most cases, by an intermediary.
DFID commissioned this study, the main purpose of which is to assist
DFID, other donors and policy makers to use the most appropriate
evaluation approaches and methods for DIBs to enable wider learning. It
involved a review of the relevant grey and academic literature and
consultations with key informants.
This report is structured as follows. There is first a section which
explores the attributes of DIBs and looks at the theory supporting their
use. The section that follows explores the strengths and weaknesses of
the current evidence base for DIBs and related instruments, such as
SIBs. There are then sections on issues relating to evaluations of
individual DIBs and how data might be synthesised from these to develop
an overall evidence base for DIBs. Finally, there is a section which
pulls together lessons learned and recommendations from this exercise.
Drew, R.; Clist, P. Evaluating Development Impact Bonds: A Study for DFID. DFID, London, UK (2015) 62 pp.
Evaluating Development Impact Bonds: A Study for DFID