NE EDUCATION BUREAU
AHMEDABAD, AUG 29
The innovative Quality Education India Development Impact Bond (QEI-DIB) which was launched in 2018 with a focus on improving learning outcomes in Language and Math has exceeded targets for the second year in a row, improving learning outcomes for more than 1,00,000 children over two years (2018-20), says an independent evaluation.
.Over 4 years, the programme will cover 2,00,000+ primary school children studying in government and low-fee private schools. The QEI-DIB will also help identify education programmes that can be successfully scaled and generate evidence to shape philanthropic and budgetary allocation in future years.
Since 2018, the QEI-DIB has supported over 1,00,000 children in more than 600 schools across Delhi, Gujarat, Maharashtra, and Uttar Pradesh.There are four leading non-profit partners, chosen for their ability and track record in achieving outcomes. Examples of participating non-profits funded through the QEI-DIB include training for teachers, leadership programmes for school principals, standalone schools in poverty-stricken areas, and technology-based learning solutions. Each of these partners has taken on ambitious targets to ensure learning gains for their students.
The QEI-DIB is unique data-driven. Evaluation and performance management data are regularly shared with non-profit partners. This enables them to be flexible and agile, using real-time data for effective decision making which includes adapting programs in the field and shifting funds within their budget to achieve outcomes.
Kaivalya Education Foundation (KEF) is one of the partners in the QEI-DIB. Aditya Natraj, CEO of KEF talks about how “The incentivisation of student outcomes allows us to constantly invest additional resources in improving our technology and processes and build a performance-oriented culture in the organisation and an outcome-oriented culture in the schools we serve.”
Payments made via the QEI-DIB are linked to performance. The results over the past two years demonstrate the value of moving away from activity-focused funding to outcomes-based funding.
An independent evaluation shows that in its second year, students in QEI-DIB classrooms gained more than two years’ worth of additional learning compared to schools where these programmes were not present. The 2018 ASER survey indicates that the average grade V student in India is at least two years behind in grade-appropriate learning. Instruments like the QEI-DIB can help to close the gap.
“It’s exciting to see how structures like the QEI-DIB help align the whole value chain of educators, on-ground partners, and funders to a common vision. Clarity on outcome targets has allowed the program to focus on what matters most – helping children learn. As an outcome-focused funder, we are encouraged by early results and want to build on this work,” says Geeta Goel, Country Director, Michael & Susan Dell Foundation.
The learning achievement allows UBS Optimus Foundation (the risk investor who provided the upfront working capital) to get the full outcome payment for year two. This puts the risk investor on track to make a return of 8% on its investment if the outcome targets continue to be met for the duration of the program. The non-profit partners will also receive an incentive payment if they consistently outperform.
The governance of the QEI-DIB is led by a Steering Committee comprising British Asian Trust, the Michael & Susan Dell Foundation, and the UBS Optimus Foundation. Other partners include Comic Relief, the UK Government’s Department for International Development (DFID), the Mittal Foundation, British Telecom, the Lawrence Ellison Foundation and Tata Trusts.
“Development impact bonds are becoming a lot more interesting for investors who are eager to channel their money to where it can do the most good for society while also delivering financial returns. They will certainly increase the social benefits and capital flows and help some of the world’s most vulnerable people at the same time,” said Phyllis KurlanderCostanza, Head UBS in Society and CEO UBS Optimus Foundation.
The structure includes a results-based finance mechanism, where the outcome funders only pay for successful results. If the outcomes are not fully achieved, outcome funders will pay proportionate to the results which are achieved.
The risk investor (UBS Optimus Foundation) commits up to USD 2.9 million of annual funding for participating local non-profits. The risk investor will make a return on the investment if pre-determined education outcomes are met. All returns will be rolled over into other philanthropic programs. The learning outcomes of students and schools participating in the program are independently verified by Gray Matters India, a specialist in student assessments.
Partners in progress
- Kaivalya Education Foundation: A School Leadership Development Program in Gujarat & Mumbai which trains principals and teachers in public schools.
- Gyan Shala: Free schools for out-of-school primary school-aged children in urban slums in Gujarat
- Society for All Round Development: Remedial program in public schools located in North Delhi
- Pratham Infotech Foundation: Learning via a computer-based adaptive learning platform (Mindspark) to close learning gaps and provide actionable insights to teachers in Uttar Pradesh schools
