Evaluation of the processes of the first Social Impact Bond in a developing country.

In 2017, Colombia launched the first Social Impact Bond (SIB) in a developing country, with the goal of achieving job placement and job retention within three months for vulnerable populations in three cities in the country (Bogotá, Cali and Pereira). This was accompanied by a process evaluation exercise led by Instiglio, a leading organization in the design and structuring of Results-Based Financing tools.

Globally, there is limited evidence and rigorous research on aspects related to the structuring and implementation of Social Impact Bonds (SIBs), which could be invaluable for effectively achieving the intended results of this innovative financing mechanism. For this reason, we are sharing with you the document “Learnings Agenda Results - First Social Impact Bond in a Developing Country,” produced by Instiglio for the SIBS.CO Program – Social Impact Bond Program in Colombia, led by the Innovation Lab of the Inter-American Development Bank Group (IDB Lab), the Swiss Economic Cooperation and Development Program in Colombia (SECO), the Department for Social Prosperity (DPS), and the Corona Foundation – with the aim of contributing to the existing body of evidence and knowledge on Social Impact Bonds. This document identifies valuable lessons learned regarding employment programs for vulnerable populations and the use of the Social Impact Bond model in Colombia, which are highly relevant to the results-based payments, impact investing, and inclusive employment ecosystem.

We hope this publication contributes to the technical expertise needed to properly implement innovative financing mechanisms and improve employment programs for vulnerable populations. Colombia, a regional pioneer in the use of these mechanisms, is poised to become a multiplier of the knowledge acquired on this topic in other Latin American countries and even globally. In this way, it is hoped that professionals in the public, private, and social sectors, both nationally and internationally, will strengthen their understanding of this subject, thereby motivating more governments and professionals in the sector to promote improvements in public policy through the use of high-quality, technically sound investment schemes (BIS).