Development Impact Bond (DIB)

Why In News?

Britain’s Prince Charles has launched a new 10-million-dollar Development Impact Bond (DIB) to help improve education for over 200,000 children in India.


About the initiative

The concept of DIB is intended as a result-oriented way to attract new capital into development projects, with a strong emphasis on data and evidence.

Under the initiative, the DIB will provide funding to local not-for-profit delivery partners in India over four years, delivering a range of operational models including principal and teacher training, direct school management, and supplementary programmes.

It is intended to improve literacy and numeracy learning levels for primary school students from marginalised communities in the country.

What are DIBs?

Development Impact Bonds (DIBs) are a performance-based investment instrument intended to finance development programmes in low resource countries, which are built on the model of social impact bond (SIB) model.

Social Financing

Social finance is an approach to managing money which delivers a social dividend and an economic return. Social finance is often used to describe the lending and investment into companies who consider themselves social enterprises, charities, co-operatives, and other impact-focused organisations.



Source-Business Standard.