Quality Education India Development Impact Bond (QEI DIB)
The Quality Education India Development Impact Bond (QEI DIB) was a pioneering initiative implemented in India from 2019 to 2022. It aimed to improve literacy outcomes for grade 1 and 2 students across seven districts in Haryana and enhance the capacity of the government education system to improve foundational learning outcomes.
The program targeted over 300,000 children with a budget of US$11.2 million. As the first-ever Development Impact Bond in India supported by corporate social responsibility (CSR) funding, it represented an innovative approach to financing education initiatives.
Key elements of the program included:
Improving teachers professional development
Strengthening teacher mentors in the government system
Providing more childrens learning materials
Improving assessment and remediation strategies
The initiative utilized a results-based financing model, where payments were linked to verified improvements in student learning outcomes. At the end of the three-year project, children in the intervention schools could fluently read at 42 words per minute (meeting Global Minimum Proficiency standards), compared to 30 words per minute in non-intervention schools.
Pros
Improved learning outcomes: Significant increase in reading fluency for students in intervention schools
Innovation in financing: First CSR-funded DIB in India, demonstrating a new model for education financing
Focus on results: Payment linked to verified outcomes, ensuring accountability
Capacity building: Enhanced government systems ability to improve learning outcomes
Cons
Limited scale: Covered only 330 schools in 7 districts, which may limit broader impact
Short-term focus: 3-year implementation may not be sufficient for sustained, long-term change
Complexity: DIBs involve multiple stakeholders and complex contractual arrangements, which can be challenging to manage
Potential for narrow focus: Emphasis on measurable outcomes might lead to neglect of other important aspects of education
Partners
Outcome Funders:
Michael & Susan Dell Foundation
Comic Relief
The Mittal Foundation
Larry Ellison Foundation
BT (British Telecom)
UK Foreign, Commonwealth & Development Office (FCDO)
Risk Investor:
UBS Optimus Foundation
Intermediary:
British Asian Trust
Service Providers (NGOs):
Kaivalya Education Foundation (KEF)
Gyan Shala
Society for All Round Development (SARD)
Educational Initiatives
Pratham Infotech Foundation
Technical Partners:
Dalberg Advisors
ConveGenius Insights (Formerly Gray Matters India)
Knowledge Partners:
Center for Universal Education at Brookings
Tata Trusts
Technical Assistance Partner:
UK Governments Foreign, Commonwealth and Development Office
Independent Evaluator:
Gray Matters India