Two years into a pioneering three-year development impact bond (DIB), Educate Girls—which tackles gender inequality in India’s educational system, is showing promising results. With a DIB, a service provider receives upfront working capital under a pay-for-success contract through a third party investor. This insulates the service provider—Educate Girls in this case—from the financial risk. The DIB goals here were increased enrollment of out-of-school girls in primary school, and progress of both boys and girls in English, Hindi, and mathematics.
Educate Girls has achieved nearly 88 percent of the enrollment target and 50 percent of the 3-year learning target in a remote, rural district in Rajasthan, India.
The thing I liked most about Educate Girls is that they are working with us at the ground level, and are helping us solve the problems that we face in educating girls.
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