Washington-based policy think tank, the Brookings Institution, has released a new report, ‘Using impact bonds to achieve early childhood development outcomes in low and middle income countries.’

Impact bonds are a type of ‘payment by outcomes’ funding mechanism that engages private capital and are a tool to tackle societal issues but have not been used specifically to address early childhood development (ECD) in low to middle income countries.

The report examines:

  • social and development impact bonds in general
  • what impact bonds can do for early childhood development
  • why impact bonds might be particularly suited for the ECD sector
  • the ECD impact bonds landscape
  • design considerations for ECD impact bonds in low and middle income countries

Brookings conclude that impact bonds have the potential to address some of the main financing and delivery constraints faced in ECD; the high participation of non-state actors and potentially significant returns in ECD make it a promising sector for impact bonds; but there may be some particular challenges associated with applying impact bonds in the ECD sector.

For a copy of the full report, please click here.