What We’re Reading: Innovative Finance for Development – A Guide for NGOs

The weather has been bleak so we’ve been catching up on our reading!

Next on our list is InterAction’s new report on Innovative Finance for Development.  The report includes a practitioner-oriented guide to 17 different IF4D instruments and a series of case studies. The instrument guide provides an in-depth review of each instrument, beginning with a summary snapshot table for that instrument, followed by a more extensive presentation of key factors NGOs should understand and consider. Hallelujah! We recently completed our own learning lab webinar on the topic and will post the lab here soon!

To grab the highlights – check out three key takeaways from this blog by InterAction staff Ben Bestor.  You can also view past webinars and trainings from InterAction on the topic here.

What We’re Reading: Scaling Pathways – Leveraging Government Partnerships for Scaled Impact

Nerd alert! We loved reading the latest from the Scaling Pathways series – Leveraging Government Partnerships for Scaled Impact. USAID, Skoll, Mercy Corps and CASE interviewed over 100 social enterprises to summarize lessons learned for social entrepreneurs scaling with government partners.   Here are a few of their takeaways!

“• Determine whether to “Build First” or “Build Together.” When determining whether to develop and prove a model alone or to build together with government, enterprises considered their partnership goal and need for ownership, and typically ended up customizing a solution between the two extremes.
• Determine type and level of evidence needed. Enterprises went beyond impact evidence and recognized that evidence needs may become more complex in later stages or in donor-dependent countries.
• Find and cultivate the right champions. Interviewees leveraged organizations already working in-country, sought contacts interested in iteration, institutionalized relationships through MOUs and contracts, and found ways to decrease the physical distance between champions and solutions.
• Demonstrate true partnership with listening, humility, and respect. It may seem obvious, but according to interviewees, it is worth repeating: approach government with respect and humility, communicate regularly, and show how you are responding to feedback with change.
• Proactively manage—or avoid—politics. Enterprises spread out risk by engaging across political ideologies, working with technical experts, managing multiple projects simultaneously, and being wary of promises made around elections.
• Help maintain quality of impact over time. To ensure continued quality of programs (especially when government takes over implementation), enterprises recommended the following: breaking solutions into small steps; creating roadmaps while still empowering partners to adapt; using test sites to iterate; creating monitoring tools; and seeking sustainable funding sources.”

We think this is great advice for all teams looking to scale innovation with governments! Understanding the type and level of evidence needed (especially when it comes to costs) and helping maintain quality as the government takes over are crucial areas that we see overlooked all the time.

Check out our Scale X Design Challenge 2019!

We were thrilled and honored to have the 3rd annual Scale X Design Challenge last night at Turner Studios in Atlanta! Congrats to team aGap for taking home the grand prize!

In case you missed it, check out five of our amazing teams pitch! And thanks to our sponsors: Delta Airlines, Fiserv, Turner Studios, Salesforce and Western Union Foundation!

Everybody is starting to wonder…why is scaling up so hard?

Fantastic new article on Vox on our favorite topic: “Scaling up good ideas is really, really hard — and we’re starting to figure out why”

The article hits on a few our favorite, and often repeated, maxims. For example, how difficult it is to go from piloting with NGO staff to scaling with government staff:

“When a program scales, it has to hire and train many new people — or in some cases transition to using government resources and civil servants. And that can change a program’s effectiveness. “You turn over a program from a highly motivated NGO…. to people who know less about it and are less driven to see it succeed — or informed about what it will take. A lot can be lost in transmission”[Mushfiq Mobarak – Yale’s Research Initiative on Innovation and Scale].

Another great point for practitioners to think about at the design phase (that isn’t often cited) is the equilibrium effect – for example, if you take a great worker training program to scale, you might actually drive down wages if there are now too many skilled workers available. While CARE is careful to consider the impact of our programs on markets, it can be difficult to accurately predict unintended consequences at scale. Being mindful of the equilibrium effect while designing for scale can help us set appropriate targets.

Check out the full article here: https://www.vox.com/future-perfect/2018/12/10/18127987/global-health-poverty-development-scaling-economics-research-yrise-yale

Supporting women entrepreneurs with disabilities in Georgia. Cohort 3 SxD Team.