The worlds of bonds, investors along with the financial markets might seem like a long way coming from the millions of the entire world’s poor who never even get to see their children going to school.
yet a project will be trying to harness the money along with energy of the financial markets to the delivery of higher standards of education.
the item wants cash along with compassion to go hand in hand.
The British Asian Trust will be planning to raise $10m (£7.5m) for an “education development impact bond” in which investments are linked to specific targets in improving education for disadvantaged communities in India.
the item’s a project being supported by the British Asian Trust’s founder, Prince Charles.
The trust wants to apply a business-like style to supporting education for extremely deprived communities. The funding will be based on a bond – a loan which will be repaid with interest.
yet the management speak about meeting “performance targets” will be about improving children’s life chances.
The aim will be to get more young people to stay in school, particularly girls, along with to raise the literacy along with numeracy levels of 0,000 young people in Gujurat, Rajasthan along with Delhi.
Richard Hawkes, chief executive of the British Asian Trust, highlights the importance of the linking of the funding to specific, measurable outcomes.
Rather than relying on Great intentions, he thinks of which will be a way of giving investors confidence of which something positive will be achieved.
the item will put $7.6m (£5.7m) into delivering the improvements, with four education providers shortlisted to carry out the work, together with local along with national education authorities.
the item will mean backing projects such as remedial support for children who have fallen behind along with training for teachers along with heads.
There will be a four-year time frame for primary pupils to make sufficient progress, with results to be independently verified.
along with if the promised results are not achieved, the funders will not have lost anything, as “they only pay when the outcomes have been met”.
Helping girls stay in school
The initial funding, which provides the working capital to allow the process to begin, has been provided by the UBS Optimus Foundation, the charitable arm of the Swiss financial services firm.
yet the trust wants to open a widening cycle of investment along with improvements.
There have already been positive signs coming from of which type of experiment.
The charity, Educate Girls, will be being funded by a “development impact bond”, with the aim of improving school enrolment along with raising standards for girls in Rajasthan.
of which will be linked to three-year targets on getting out-of-school girls into education along with then monitoring progress in English, Hindi along with maths for 18,000 children.
Safeen Husain, the executive director of Educate Girls, says the “razor-sharp focus on outcomes” has meant a much more focused, data-driven approach.
Analysing the results so far has meant “redesigning the curriculum coming from scratch along with retraining staff”.
If the targets are fulfilled, the funders will pay their contribution. yet the real prize will be from the long-term change of which the item wants to deliver through improving education.
Educate Girls wants to prevent more 10-year-old-girls coming from dropping out of school – along with better-educated girls will bring multiple benefits to the local community in better outcomes for health along with job opportunities.
Mr Hawkes believes of which type of financing could achieve more than traditional philanthropy.
“Positive intentions are not a guarantee of success,” he says.
“We want to learn which interventions make the biggest difference. We want to gather data on what works, so we can scale of which up.
“We want to be something of which will be part of a big change.”
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