Development Impact Bonds are innovative financial instruments that can be used to mobilize capital at scale. In this pay-for-success model, the payouts were linked to the outcomes achieved. This first CSR-supported DIB in education was funded by IndusInd Bank and SBI Capital Markets Limited through SBI Foundation.
The innovative Haryana Early Literacy DIB (2019-22) was convened by Social Finance India and implemented by LLF in collaboration with the Government of Haryana. The DIB was implemented in 3,300 government schools of Haryana in seven districts for increasing the learning outcomes of 164,000 children in grades 1 and 2.
The Haryana DIB brought together diverse participants with differing responsibilities but with a common, sharp focus on achieving outcomes.
Foundational skills such as reading, writing independently, and doing simple math operations are gateway skills that must be acquired early and well for all future learning in schools. However, despite increasing school enrolments, 55 percent of children in India suffer from learning poverty (inability to read and understand appropriate short sentences in primary grades).
The design of the intervention aims to strengthen the system or government by building capacity. The LLF team works in close collaboration with key government officials of the education department at each administrative level.