Closing form - Innovative financial instruments for development

Innovation methods

Data sources

SDG(s)

Sustainable Development Goal(s)

1No poverty

10Reduced innequalities

17Partnerships for the goals

Disclaimer:

Please be aware that the content herein has not been peer reviewed. It consists of personal reflections, insights, and learnings of the contributor(s). It may not be exhaustive, nor does it aim to be authoritative knowledge.

Learnings on your challenge

What are the top key insights you generated about your learning challenge during this Action Learning Plan? (Please list a maximum of 5 key insights)

1. There is a clear need and interest of the financial industry in Uruguay to get involved in sustainable finance. 2. There is still a lack of knowledge on the governement and the private sector on issues of impact measurement and financial instruments for development. 3. The UNDP is a respected actor with great potential to develop this agenda in the country. 4. Implementing innovative financial instruments for development takes time: both to convince all the actors, and for all the legal procedures that must be developed with our counterparts, and because of the few predecents that exist.

Considering the outcomes of this learning challenge, which of the following best describe the handover process? (Please select all that apply)

Our work has led to significant changes in our UNDP Country Office programming, Our work has led to a significant change in public policy at a national or local level, Our private sector partners have expanded our joint work through their own resources in our country or internationally

Can you provide more detail on your handover process?

We will continue working in 2024 with this agenda. But part of the handover process is that some of the instrumentes iplemented by the governement can be scaled, at the minsiterial level.

Please paste any link(s) to blog(s) or publication(s) that articulate the learnings on your frontier challenge.

Data and Methods

Relating to your types of data, why did you chose these? What gaps in available data were these addressing?

- Pilot: the design of a the first pilot of a social impact bond was generated. Now it is in the final phase of signatures and it will be implemented in Q1 2024 - Co-designing and co-creation: for the design and implementation it was necesary the involvment of different actors: a) Government (2 ministries, the Uruguayan agency for international cooperation, the planning and budget office) b) Private sector (2 private banks, one public bank) c) NGOs d) A foundation e) The Interamerican-Development Bank f) Legal firm Being the first pilot required the experience and intelligence of all parties. The lab played a key role both in the search for all these alliances, in keeping all parties informed and in generating instances of collective intelligence for the design of the pilot. - Financial Data. This bond has a strong financial model that was built with financial data, with the help of the consultants (Grant Thornton).

Why was it necessary to apply the above innovation method on your frontier challenge? How did these help you to unpack the system?

- Solutions mapping. It was very important to analyse solutions already existed in terms of new financial instruments for development both in Uruguay and globally. To learn what it works and what it doesn't. And was also important to map local NGOS and entreprenurs that were working in the challenges that the financial instruments could finance.

Partners

Please indicate what partners you have actually worked with for this learning challenge.

Please state the name of the partner:

Banks: Itau Bank, Santander Bank, BROU Bank

What sector does your partner belong to?

Private Sector

Please provide a brief description of the partnership.

Impact Investors for the Social impact bond

Is this a new and unusual partner for UNDP?

Yes

Please indicate what partners you have actually worked with for this learning challenge.

Please state the name of the partner:

Reaching U - Education Foundation

What sector does your partner belong to?

Civil Society

Please provide a brief description of the partnership.

Impact Investors for the Social impact bond

Is this a new and unusual partner for UNDP?

Yes

Please indicate what partners you have actually worked with for this learning challenge.

Please state the name of the partner:

Legal and financial consultant: Guyer & Grant Thornton

What sector does your partner belong to?

Private Sector

Please provide a brief description of the partnership.

Were responsible for working on all the legal documents necessary to structure the bond and the financial design

Is this a new and unusual partner for UNDP?

Yes

Please indicate what partners you have actually worked with for this learning challenge.

Please state the name of the partner:

Government: - Minsitry of social development - Ministry of education - Uruguayan agency for international cooperation, - The planning and budget office

What sector does your partner belong to?

Government (&related)

Please provide a brief description of the partnership.

Co-payers in the social impact bond

Is this a new and unusual partner for UNDP?

End

Bonus question: How did the interplay of innovation methods, new forms of data and unusual partners enable you to learn & generate insights, that otherwise you would have not been able to achieve?

Please upload any further supporting evidence / documents / data you have produced on your frontier challenge that showcase your learnings.

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Innovation methods

Data sources

SDG(s)

Sustainable Development Goal(s)

1No poverty

10Reduced innequalities

17Partnerships for the goals

Comments

Action plan