Results-Based Financing Through Social Enterprises: A White Paper for the Global Partnership for Results-Based Approaches, in Response to the Covid-19 Pandemic
The COVID-19 pandemic has triggered a global humanitarian crisis, putting both lives and livelihoods at risk. In the initial stages of the pandemic – especially in contexts where the state machinery was caught unawares or lacked capacity, or both, social enterprises (SEs) or socially-driven private enterprises – have been particularly active and have stepped up to provide relief. These enterprises will continue to be important as the pandemic stretches out, with recovery likely to be a long-drawn process. Since the Global Partnership for Results-Based Approaches (GPRBA) has a history of working successfully with SEs and other non-state private providers, the Partnership draws upon its significant experience and its partners' institutional capacity towards building productive partnerships with numerous SEs. To that effect, this White Paper is intended as an approach and guidance for GPRBA partners, World Bank task teams, and other actors who engage in Result Based Financing (RBF). It focuses on two overarching objectives, i.e., helping reduce the spread of COVID-19 cases and helping minimize the socioeconomic impact of the pandemic, especially on poor and excluded groups, that can be achieved by engaging SEs through an RBF approach. Additionally, it explores tools and mechanisms that could be used to substantiate results while taking into account the need to reduce in-person interactions in light of COVID-19. Lastly, building on the foundation of successful GPRBA projects, the paper provides an overview of the financing arrangements that can be utilized to collaborate with SEs.