Full report: Findings from the second research wave of the Independent Evaluation of the FCDO Development Impact Bonds Pilot Programme

The objective of the evaluation report is to generate learnings and recommendations on the use of DIBs as an instrument for aid delivery. It focusses on the use of the DIB funding mechanism and understanding the ‘DIB effect’, that is, the effect of using a DIB instead of a grant or other Payment by Results mechanism. The evaluation also tests a DIB Theory of Change (ToC), based on wider literature and consultations with stakeholders in these DIBs. As the DIBs are part-way through delivery, this report focuses on the DIBs during their delivery stage. It builds on the first report, which focused on the DIBs during their design stage. 

In addition, the report explores the following three themes:

• Four key ingredients in a DIB to increase efficiency and effectiveness in delivery:

1. Stronger focus on outcomes
   
2. Heightened performance management
   
3. External perspectives and expertise
   
4. High-stakes environment
   

• The conditions in which a DIB is most appropriate
• Lessons learned from DIB application, including lessons from adaptation to COVID-19