This is our monthly policy briefing for January 2021. Each week we gather all the news, commentary and events from across the sector, then tie it all together each month. If you would like to get this in your inbox each week you can sign up to Tiny Letter.
Call for evidence Global systematic review into outcomes-based contracting Ecorys and the Government Outcomes Lab (GO Lab) at the University of Oxford have partnered to undertake a global systematic review to explore whether, when, and where (and if possible, how) outcomes-based contracting approaches deliver improved impact when compared to more conventional funding arrangements. They are inviting interested individuals and organisations to submit research studies relating to social interventions that have been funded in total, or in part, by outcomes-based contracting approaches, including (but not limited to) evaluations or case studies, unpublished academic, individual or organisational research, numerical or statistical information, and meta-analyses or reviews. More details available at the link above. GO Lab
Opinion Outcomes-Based Contracts in a Time of Crisis Mara Airoldi, Director of the GO Lab, and Louise Savell, co-founder of Social Finance, reflect on the impact of Covid-19 on outcomes-based contracts, and how their responses can inform efforts to recover from the pandemic in a continuing environment of radical uncertainty. The article considers the ways in which outcomes-based contracts have adapted, including altering contractual terms and moving to remote data collection methods, and highlights three key principles from OBCs that can strengthen recovery programmes: 1) Align cross-sector partnerships around a shared definition of success. 2) Use real-time data to measure progress and course correct. 3) Issue flexible contracts that allow providers to respond to uncertainty and pivot to meet emerging needs. SSIR
Report Big Issue Invest and GO Lab launch first report on data transparency in the social outcomes sector On Thursday 21 January, GO Lab and Big Issue Invest (BII), the social investment arm of The Big Issue, released Exploring Social Investment – An Indigo Technical & Learning Report, detailing their collaboration towards data sharing in the social outcomes contract sector. The report showcases how GO Lab and BII worked together to publish the contract, finance and impact data for the investments made within BII’s Outcomes Investment Fund. The collaboration forms part of the GO Lab's emerging data collaborative, the International Network for Data on Impact and Government Outcomes (INDIGO), which aims to foster better data for better social outcomes by supporting social investors like BII to share data on the outcomes contracts they work with. GO Lab
Opinion Quality Data for Improved Social Outcomes Natalie Ward, student analyst at the Beeck Center for Social Impact and Innovation at Georgetown University, reflects on the hack-and-learn jointly hosted by the Beeck Center and the International Network for Data on Impact and Government Outcomes (INDIGO). Natalie was part of a team exploring the visualisation of investor outcomes in The Skill Mill SIB, and in this article, she considers the importance of helping investors to understand this data, as well as highlighting the value of collaborative projects like the hack-and-learn for those who participate. Beeck Center
Report Social Impact Bonds in Latin America: IDB Lab's Pioneering Work in the Region: Lessons Learnt This study, undertaken by Ecorys on behalf of the Inter-American Development Bank (IDB) Lab, examines the lessons learnt from developing social impact bonds in Latin America. Among a range of insights, the report suggests SIBs are a viable product in Latin America, although there is some way to go to achieving large-scale culture change, and identifies five key factors which support the growth of the SIB ecosystem: demand from government, regulatory framework, economic and political context, availability of data, and market capacity. IDB
Opinion The world’s largest education impact bond delivers on results midway through the program The Quality Education India Development Impact Bond (QEI DIB) aims to improve education outcomes for over 200,000 primary school students in four regions of India between 2018 and 2022. This article highlights the promising average results two years into the project, with over 100,000 students reached and the providers generally overperforming relative to their targets. A few features of impact bonds that may have driven this success are highlighted, including the scrutiny that they encourage and their active use of data, although other factors such as previous underperformance by the service users and current underperformance by the comparison group may also have contributed to an increased effect size. Brookings
Opinion What a year: A review of the global impact bonds market in 2020 Emily Gustafsson-Wright and Sarah Osborne look back on the challenges and opportunities that impact bonds faced throughout 2020. They highlight some of their analysis of the impact of Covid-19 on impact bonds, and their series of briefings on the state of play ten years on from the first impact bond, before looking ahead to some of the areas they hope to explore in 2021. Brookings
Opinion Force Majeure and Development Impact Bonds This article examines the impact of Covid-19 on impact bond contracts, and highlights the importance of force majeure clauses in allowing parties to navigate obstacles to achieving outcomes resulting from the pandemic. It notes the different impacts on different parties, requiring a careful analysis from the perspective of all parties, and suggests the need for further harmonisation of FM clauses in impact bond contracts to ease the response to future FM events. The National Law Review
News World first crowdfunded social impact bond launches Social Finance Israel have launched a crowdfunding campaign to help to finance their new SIB, a project they believe to be the first crowdfunded social impact bond in the world. The SIB, which aims to reduce loneliness and improve quality of life among 200 senior citizens in Tel Aviv, has already raised 1.6 million NIS (~£365,000) from philanthropic funds and anchor investors, and is aiming to raise another NIS 700,000 (approx. £160,000) through crowdfunding. Pro Bono Australia
Opinion Orchestrating Systems-Level Change in the Battle Against COVID-19 In this article, the authors identify the need for systems-level approaches to deal with many of the challenges faced during the pandemic, and highlight the important role that orchestrators can play in leading this approach, helping to organise cross-sector partnerships and drawing in neglected players to contribute their expertise. They discuss a range of successful examples of cross-sector partnerships in response to system-level challenges related to Covid-19, and stress the need to build on and strengthen these partnerships to respond to future crises. SSIR
Presentation series The Sufficiency Series Following the cancellation of their National Children's Commissioning Conference, National Commissioning and Contracting Training Conferences (NCCTC) have brought together digital presentations and supporting papers for some of the approaches taken by Local Authorities to improve sufficiency. These include presentations on 'Stronger Families Norfolk' by Rashid from Norfolk CC and Ann Marie from Bridges, service-oriented developments from Greater Manchester's application of No Wrong Door, and many more. The free series aims to provide definition to the challenges and solutions in the sector. NCCTC
Opinion Solving complex problems in the public sector This article considers the challenges facing public services as they attempt to tackle complex social problems. It highlights the importance of properly framing complex problems, by thinking in systems to understand how stakeholders interact, starting from the beginning to assess the nature of the challenge, and retaining a focus on the problem itself rather than fixating on a particular solution. Apolitical
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