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2021 | OriginalPaper | Chapter

16. Development Finance: The IBSA Fund and Development Impact Bonds

Authors: Francisco Simplicio, Camila Amorim Jardim

Published in: India–Africa Partnerships for Food Security and Capacity Building

Publisher: Springer International Publishing

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Abstract

Achieving the Sustainable Development Goals (SDGs) will demand a significant growth in the volume and effectiveness of development resources, mostly in Asia and Africa. In that regard, the India, Brazil and South Africa Facility for Poverty and Hunger Alleviation (IBSA Fund) and the concept of Development Impact Bonds (DIBs) are innovative multi-stakeholder initiatives of development cooperation. On the one hand, the IBSA Fund is a unique Southern initiative under the United Nations, constituting an institutional framework that allows for low cost and high impact projects. On the other hand, DIBs are projects in which the private sector gives the capital upfront and, in the case that the agreed upon impact is achieved, costs are paid back with interests by a donor agency avoiding bureaucratic and ineffective management. This paper aims to briefly analyze these initiatives, as a means to show some of the diversity and complexity of development cooperation. This paper argues that impact has to be planned, measured, monitored and reported. But even beyond that, in the context of developing countries and institutions, the capacity to learn and react quickly to adjust, correct or adapt is also essential. They need to be a complimentary part of the same process, most probably because development situations always include some unplanned or unseen. The possibility of rearrangements in inputs and learning by doing are demanded by the dynamic nature of development cooperation projects, to which traditional cooperation arrangements are less able to respond.
Footnotes
1
No poverty, zero hunger, good health and well-being, quality education, gender equality, clean water and sanitation, affordable and clean energy, decent work and economic growth, industry, innovation and infrastructure, reduced inequality, sustainable cities and communities, responsible consumption and production, climate action, life below water, life on land, peace and justice strong institutions, partnerships to achieve the goal (UNDP 2016).
 
2
At the time it was UNDP’s Special Unit for South-South cooperation (SU/SSC). It is a UN Office hosted by UNDP.
 
3
Merged into the Foreign and Commonwealth Office to form the Foreign, Commonwealth and Development Office as of 2020
 
Literature
go back to reference Koening, A. N., & Jackson, E. T. (2016). Private capital for sustainable development: Concepts, issues and options for engagement in impact investing and innovative finance. Danish International Development Agency (DANIDA): Ministry of Foreign Affairs of Denmark. Koening, A. N., & Jackson, E. T. (2016). Private capital for sustainable development: Concepts, issues and options for engagement in impact investing and innovative finance. Danish International Development Agency (DANIDA): Ministry of Foreign Affairs of Denmark.
go back to reference Mawdsley, E. (2012). From Recipients to Donors: Emerging Powers and the Changing Development Landscape. London: Zed Books. CrossRef Mawdsley, E. (2012). From Recipients to Donors: Emerging Powers and the Changing Development Landscape. London: Zed Books. CrossRef
go back to reference Simplicio, F., Tofalo, I., Hodge, S., & Wickmark, C. (2013). South-South cooperation principles in practice: The IBSA Fund experience. In Beth le Roux (Ed.), Multilateral Development Cooperation: What Does It Mean for South Africa’s Foreign Policy? (pp. 23–33). Pretoria: Institute for Global Dialogue. Simplicio, F., Tofalo, I., Hodge, S., & Wickmark, C. (2013). South-South cooperation principles in practice: The IBSA Fund experience. In Beth le Roux (Ed.), Multilateral Development Cooperation: What Does It Mean for South Africa’s Foreign Policy? (pp. 23–33). Pretoria: Institute for Global Dialogue.
Metadata
Title
Development Finance: The IBSA Fund and Development Impact Bonds
Authors
Francisco Simplicio
Camila Amorim Jardim
Copyright Year
2021
DOI
https://doi.org/10.1007/978-3-030-54112-5_16

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