Fiscally constrained governments pursuing the short-term objective of ensuring a fairer and faster recovery from the covid crisis and the medium-term aspiration of building more sustainable economies will not only need to leverage private capital at scale to invest more, but also to invest their own resources better.

As market participants, the increasing adoption of results-based financing (RBF) solutions (especially where more appropriate and effective than traditional input-based spending) is probably the single greatest evolutionary step that governments need to take to foster impact-driven economies.

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NAB Recommendation 1:

Be clear on the need for RBF and the problem it is solving

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NAB Recommendation 2:

Shift the focus beyond outputs to outcomes

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NAB Recommendation 3:

Learn from the best (and worst) practices from around the world

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NAB Recommendation 4:

Bring the A Team – RBF can be used well or badly, and the cost of mistakes can be high

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NAB Recommendation 5:

Find champions within government and donor organisations at both the political and technical level

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NAB Recommendation 6:

Approach all RBF tools and projects as a partnership model, not a financial instrument

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NAB Recommendation 7:

Recognise it is a journey

Under RBF programmes, the principal sets financial or other incentives for an agent to deliver predefined outputs or outcomes and rewards the achievement of these results upon verification. Performance-Based Contracts (PBC), Outcomes Funds, Career Impact Bonds (CIB) and other RBF tools can help national and local governments to draw private investors into economic projects to maximise the delivery of social results.

They are an evolution from traditional interventions that fund inputs (such as hours of training in a labour market development programme), to focus on the achievement of measurable outcomes (such as job placements, retention, and increased wages / income).

Seb Profile 500X420 1

Sebastian Welisiejko

Chief Policy Officer - GSG Impact

Alasdair Maclay

Alasdair Maclay

Chief Strategy Officer - GSG Impact

Julieta Bertolini

Policy Analyst - GSG Impact

Amel Karboul

CEO, Co-Founder - The Education Outcomes Fund (EOF)

Jared Lee

Director of Programs, Co-Founder - The Education Outcomes Fund (EOF)

Milena Castellnou

Principal - The Education Outcomes Fund (EOF)

Joseph Arey

Research Assistant - The Education Outcomes Fund (EOF)

Sebastian Welisiejko

Cheif Policy Officer - GSG Impact

realimpact@gsgii.org