StanfordSOCIAL - INNOVATIONE&«view Informing and ingpiring leaders of sactal change Unpacking the Impact in Impact Investing [Alonger version of "When Can impact Investing Create Real impact from the Fal 2015 Up for Debate feature By Pal Brest Kel Born | Aug 4 203 7T ie ste anncesing retain that lng with plato ad goverment ald pte eter ca conte hing socal ad cavironmental problems, At the same te, a growing number of investors are expressing 2 desie to “do good while doing well" These are impact investors, who seek opportunities for financial investments that produce significant socal or environmental benefits. However, the rapid growth of the field ‘of impact investing has been accompanied by questions sbout how to assess impact, as well as concerns about potentially unrealistic expectations that social impact and market-rate returns can be simultaneously achieved. "This article is addressed to impact investors who want to know whether their investments wil actually contribute to achieving their social or environmental (hereafter, simply “social” objectives. We introduce thre hasie parameters of impact: enteprise impac, investment impact, and nonmonetary impact Enterprise impact is the socal vale f the goods, services, or other benefits provided by the investe enterprise. Investment impact sa particular investor's financial contribution to the socal value created by an enterprise. Nonmonetary impact reflects the various contributions, besides dollar, that investors, fund managers, and others may make to the enterprise's social value “The methods for assessing enterprise impact, which are relatively well undesstood? if erticallyaplid in public policy and philanthropy, are no difeent in irapact investing. The principal contibution ofthis aril is in setting ou the concepts of investment impact and nonmanetary impact. The most novel and intriguing question we consider x whether and when investors can expect bth to receive isk adjusted market rate return on thee investments andto have ral seal o environmental impact: that is, can investors oth make money and make a diffrence? Many impact intestment funds cai thelr invertors can? One cent study asserts tht most of what it erimates tobe a $4 billion impact investing market involves investments producing matket rte ‘We post that particular investment has impact only iit increases the quantity or quality of the entepese’s socal outcomes beyond what would otherwise have occured. Under this definition, iis readily apparent tha grants or concessionary investments (.e, investments that sacrifice some financial gun to achieves social bene) can have impact: by hypothesis, an ordinary investor, who secks market-rate returns, would not provide the capital on equally favorable corms if a all Buti an impact investor is nor willing to make a financial satifice, what ean he contsibute tha the market wouldn't do anyway? We believe that in publicly traded large cap markets, che answer is nothing: even quite lrg individual investments will not affect the equilibrium of these esentaly perfect ‘markets. But the fietions or imperfections inherent in some smaller, private markers may offer the possibility of yielding marke retuens and achieving social impact; for example, someone with distinctive knowledge abou the risk and potenil social and financial returns of a particular opportunity may ‘make an investment that others would pase up ‘The question of investment impact is af obvious importance to investors who want more than the good public relations or “warm glow’> asociated with a beneficent act—and who actually want to make a difference. Although we do not reject the possibilty of earning market-rate nancial returns while achieving socal impact, we ae skeptical about how much ofthe impact investing market actually fit this description. This question can be answered only by examining particular investments for bath enterprise and investment impact. Our goal here sto create a feamework for these studies. Basic Concepts of Impact Investing Impact Investing Defined An impact investor seeks to produce beneficial socal or environmental outcomes that would not occur but for is investment in «socal enterprite, In international development and carbon markets, thsi called additionali:® With this core concept in mind, we define the practice of “ieapact investing” eapaciousy, as actively placing capital in enterprises that generate socal or environmental goods, services, or ancillary benefits (euch a8 creating obs), with expected financial returns ranging from the highly concessionary to above market? “The adverb “actively” exchides negative investment screens. Ths is not a judgment about ther value, but rather reflects the general understanding thatirapact investing encompasses only affirmative investments. Within the field of impact investing, we include concessionary investments, which sacriice some financial returns to achieve soil benefits, and non-concesionay investments, which expect k-adjusted market returns or beter? ‘The Inherent Subjectivity of Goal Diferent impact investors have diferent goalh—to prevent malaria in Ma, sy 0 to improve cilen's nuttin, foster energy efficiency, oF promote community development. Investor’ goals may sometimes compete with one another: Peter may want to create jobs in Acizona, Paul in California, and Mary in Mexiso-—even i bilding icory in one locale takes jobs away from another? And one investor’ valued objectives may be loathed by another, while most people would celebrate a clinic providing low cost eye surgery, some would object oa clinic providing low cost abortions. In short, the range of possible objectives for impact investing is vtwlly xs broad asthe range of those in philanthropy, From a moral point of view, one can argue that some objectives are more important chan others and that some are reprehensible. But these questions which philosophers have debated for centuries le beyond the seope of this article, For better or worse, whether an activity has impact in achieving a specified goal is essentially & technical, value-neutral question.” ‘To say that an impact investor's goals ate subjective doesnot mean that you, the reader, must accept al goals as equally valid, You might reject some goals “entirely because you think they produce negative social value. And even among goals that you Believe have postive value, you may belive that some are more valuable than others—fr example, that providing clean water to base-of-the-pyramid (BoP) populations in Afica is more valuable than creating jobs in Silcon Valley. Is, indeed, the inherene subjectivity of goals that allows you to make this jusgment.? Tntentionaity [ike philanthropists, impact investors invariably intend to achieve socal or environmental goals. They ate, by definition, socially morivared. "Their goals may be as specific as providing anti-malara hed net to residents ofa region in Aftca or as general as doing environmental good.'* Te contrast, socaly neural investors ate indifferent to the socal consequences of their iavestments.¥ Many endowments invest in a socially neural manner, a8 do individuals who invest chrough money managers or Funds whose only mandate sto maximize financial returns." Readers who are dismayed by the very idea of socially neutral investors might consider the extent to which their own retiement fund managers seck to achieve socal or environmental _goals as wel 38 financial ones, Some do, but many do not Pethaps there isa utopia in which all investors are motivated by social as wells financial objectives, and hence where every investment i an “impact investment.” Even in such a world, however, as long as investors have diverse socal goals a given investor's socially motivated investment willbe made in a market where other investors do not necessarily share che sme goals and will therefore be socially neutral with respect to that particular investment ‘Whatever an investor's intention, the fundamental question addressed in tis article is one of fac: whether an investment actually has social impact.” Yet ‘hile socal impact can he achieved unintentionally, this does not mean tht intention is unimportant, For one thing, results ean be measured and impact assessed only with respect to particular goal, Moreover in business and philanthropy, as in all other spheres of life, people are more likely ro achieve results that they intentionally seek, (One consequence of separating impact ftom intention, however, is that socially neutral investors can unintentionally contribute to impact—whether in terms af ther own values or someone else's, For example, socially neutel investors, motivated only by profit, have contebuced tothe social impact of telecommunications companics in bath the developed and developing worl, ‘The Nature of “Impact”: The Centrality of the Counterfactual In the remainder of this article we explore the three parameters of impact: (1) the impact of the enterprise itself, 2) investor’ contribution tothe enterprises impact, and (3) the contsbution of nonmonetay activities to the enterprise's impact. Having iempace implies bur fr causation, and therefore depends on the idea ofthe counterfactualon what would have happened if'a particular investment ‘or activity had not occurred, The enterprise itself has impact only ft produces social outcomes that would nat otherwise have occurred, And for an investment or non-monetary activity to ave impacy, it must provide additionaiehat is, it must increase the quantity or quality of the enterprise’ socal ‘outcomes beyond what would otherwise have ocurred, We will hive more to say about the relevant counterfactuals in each section below. Enterprise impact The impact of investors and other actos ultimately depends on the impact of the enterprise they support. An enterprise can ave impact in several possible ways, The first two are fundamental 1 Product impactis the impact ofthe good or services produced by the enterprise (eg, providing anti-malasa bed nets, clean water, financial services, or efficient energy), = Operational impacts the impact ofthe enterprise's management practices on is employee’ health and economic security, it effect on jobs or other aspects ofthe well-being of the community in which it operates, or thee ntl effets of ts supply chain and operations." Some ofthese are often described as environmental, social, and governance (ESG) factors. Product or operational impact can sometimes be maltiplied when an enterprise operates in collaboration with others, Hence, 1 Collective impacts the impact of nonprote organizations, foundations, government agencies, and businesses working together to takle a community-wide problem"= Sector impacts an enterprise's impact, beyond its particule mission, on the markets and sector in which it operates. For example, 0 entenpise’s ilo projet n dip ieigation may teach farmer about its hens, develop demand for dip etigation produc, and demonstrate the vibiity of the business it may also develop supply chains that canbe used hy othe kinds of enterprises. Tnadton, the very density of entrepreneurs in a region may have positive spillover elect for athe businescs2! An enterprise to have sector impact nlesit as product or operational ipa. ‘The theoretical framework that underlies the asessment of enterprise impact makes an essential distinction between outputs and outcomes, An output is the product or service produced by an enterprise; the (ultimate) outcome is the effect of the output in improving people's lives. Therefore the impact investor must answer two quite different questions 1. Towhat extent will the intended ourpue (whether a product or operational benefit) occur? 2. Towhat extent will the output contribute tothe intended outcome?—where the counterfactual is thatthe outcome would have occurred in any Consider an investor supporting an organization that manufactures and distributes bed nets with the goal of reducing morbidity and mortality ftom malava ‘The focus ofthe fist question is whether the bed nets were manufactured and distributed, It is answered mainly by looking at the quantity and quality of the organization's ourputs ‘The second question is whether the bed nets actually reduced malatia in the target population, For example even ied nets are generally effective, and ‘ven ifthe intended outcome occurred in the target population, can the reduction in malaria be attributed to the enterprise? Pechaps che reduction was due {0 simultaneous vaccination or monguito eradication program. Or paps the enterprie just displaced the outputs of goverment providers or those of ‘ordinary businesses that did not receive impact investing subsidies and were therefore less able to compete The second question is ypicaly answered by ‘employing the same socal science methods used in assessing outcomes in pubic policy and philaatropy—for example, randomized controled stuies, ‘quasi-experimental techniques, econometric analysis, nd the like? ‘The impact investing field has developed standardized metrics for assessing some commonly measured criteria for an entegprite’s social or environmental performance: the Impact Reporting and Investment Standards (IRIS) and 2 rating system known asthe Global Impact Investment Rating System (GURS).. ‘Though IRIS includes some output measures, its mainly concerned with financial and operational measures. GIIRS ratings are based on 2 survey spanning Sve categories: Leadership, Employees, Environment, and Community, which ae opertional, and Products and Services, which is output-orientd, Although IRIS and GIRS provide frst steps toward assessing outcomes, they fll shot of doing so, For example, suppose that an impact investor believes that jobs in business enterprises ean reduce poverty in BoP populations. IRIS and GTIRS ean measure how many people an organization employs, but not ‘the social value of those jobs With rare exceptions most notably, the field of microfinance” —there have heen few efforts to asses the outcomes of social enterprises. Evaluation of this sort is expensive, and it sypiclly has been finded by private foundations and international development institutions suchas the World Bank The superficial ofthe current rating schemes may select the expense, complexity, and often indeterminate results of evaluations. In this respect, impact investing isnot far behind philanthropy, which has not yet succeeded in creating a comprehensive system for evaluating the performance of nonprofit ‘organizations. But the absence of daca and analysis makes it dificult for impact investors to assess the socal impact of the enterprises in which they invest. A Framework for Quantifying Enterprise Impact If impact investors applied the same standards socal impact that they do t financial performance, they would not he satisfied with knowing that an investment wil have some soil impact. They would want to estimate how much impact tis Wkly to have They would want to deploy thee capita foe the greatest impact achieving a pticlae gol and, indeed, might psn alternative goals ifthe ‘expected impact was to low. The analysis ofthe magniude of enterprise impact thus involves an assesment of cons and socal benfits2* Social Value Social Benet (Production Cost) For purposes of enterprice impact, che cot isthe cost of producing a unit ofthe desired socal benefit, For example, for a med-tech enterprise performing low-cost cataract augery the cost isthe cost per person whose eyesight is restored. ‘The social value is a measure of the enterprise's efficiency in achieving ‘enterprise impuct—collogualy, its “bang forthe buck" Describing the enterprise's socal benefit as “eyesight restore” dacsnt answer the question of how much value the investor places on that benefit. Although health economists have developed measures of how disabilities alfect the quality of life faethe same reason that investor socal goals ae intrinsically subjective, so too are the dalla values that chy place on achieving particular goals. Because illustrating this point is complex and somewhat ancillary tothe main thrust of the article, we relegate the discussion to an appendix. We should note chat any assessment of enterprise impact ought to consider its net impact, taking into account the enterprise’s harms a5 well as benefits. Trnagine a company that manufactures effective bed nets (a good) under poor labor conditions (a bad) An investor who cates about both ofthese values must, however crudely, estimate how they net out? As in the case of most social programs, enterprise impact is devilishly dificult to ascertain, Because it has been analyzed a length elsewhere,* however, we‘move on tothe two other forms of impact—investment and nonmonetary impact—which have not previously been defined, let alone analyzed. Without ‘enterprise impact, however, neither investment nor nonmonetay activities can have impact. Therefore, in exploring these issues, we will assume that a particular enterprise has suficient impact to justify the investors’ and intermediaries’ efforts to support Investment Impact (Capital Benefits) As foundation for discussing investment impact, ts helpful first to consider the motivations and goals ofthe invesors themselves As we noted previously, an investor may be socaly neutral or socaly motivated 1 The socially neutral iwestor makes investment decisions based solely on expected financial return, 1 ‘The socially motivated investor values the particular products (e., microfinance, clean energy or byproducts (eg jobs in poor neighborhoods) rer to increase the quantity or quality ofits socially produced by a business enterprite, and is therefore intrested in investing in that enterprise ‘beneficial outputs as wel as fr its financial returns. ‘These socially motivated investors fill into two categories: 1» Non-concessonary investors ate nt willing to make any financial sasifice to achieve ch social goals = Concessionary investors are willing to make some financial sacrfice—by taking greater risks or accepting lower returns—to achieve their socal goals, In impact investing parlance, these socially motivated investors are “financial first” and “impact frst” investor, respectively” Most “double hottorn line” impact investors are non-concessionay. In the context of philanthropy, non-concessionary socal motivated investments are often called mission-related investments (MRIs) and are distinguished ftom program-related investments (PRI), which are generally concessionary” To have inves act roqutes meeting the criterion of additionalitythat an investment increase the quantity or quality of the enterprise's social ‘ousput beyond what would otherwise have occurred, Assuming tha, atthe time ofan investment, the enterprise can productively absorb more capital the investrnent has impact iit provides mote capital, or capital at lower cost, than the enterprise would get without it Debra Schwart, director of program-related investment at the MacArthur Foundation has alliteratively summarized the kinds of capital benefits chat Jimpact investors can peovide in erm of five Ps, ro which we add a sith, perspicaiy 1 Price. Below market investments = Pledge, Loan guarantees 1 Position. Subordinated debt or equity postions 1 Patience. Longer terms before exit “seeds Purpose Flexibility in adapting capital investments tothe enterps 1 Perspicaciy, Diseerning opportunities that ordinary investors don't see ‘These capital benefits enable the enterprise to experiment, sale up, or purse soca objectives to an extent that it otherwise could particularly relevant to investments that expect below-market returns. (The extreme cas in which an impact investor provides capital benefits is one in ‘which che enterprise would receive no capital whatsoever from socially neutral investors.) The sist, perspicacity, may hold the key to achieving both market returns and social impact. Concessionary Investments A concessionary investment sacrifices some financial returns to achieve social benefits: The return sueifced iin elect, a charitable donation or grant, Assuming thatthe enterprise can productively deploy additonal capital, a concessionary investment has investment impact vitally by definition, because it makes available eapital to which an enterprise would not otherwise have access, Consider three general situations in which impact investors have made concessionary investments Supporting nascent enterprises, "The easly stages of many social enterprises that aspire to become financially sustainable depend on “enterprise philanthropy" and highly concessionary investments that involve higher risks than ordinary market investors would take, Tis was true of microfinance and of othe social enterprises tha serve BoP populations, which often depend on innovations in technology and marketing and require sigaificant investments before yielding any financial returns. For example: 1 Tnan effort to reduce obesity, California FreshWorks makes grants to support innovative ideas that are not ivestmnen-ready, with the atm of bringing healthy food retailers to underserved communities tis supported by commer a + Acumen Fund made a $1.5 milion equity investment, taking a greater isk than the financial rerun would justify, in Tn’ Dial 1298 for ‘Ambulance service for BoP clients. Combined with echoicalasistance, this pioneering investment helped Dial 1298 expand operations to new communities and secure investments fom market-rate investors. Danks, impact investors, and private foundations * Root Capital makes oan to eaty-stage agricultural businesses in Ac and Latin Ameria that fll within the "mising mid” oflender—t00 lange for microfinance but too smal for commercial banks.” ‘= USAID's Development Innovation Ventures provides grants to social enterprises for seed funding, start-up and testing, and transitioning toscale * ‘We should noes tha, in addition to philanthropists and concessionary investors, entrepreneurs and intermediaries often provide subsidies inthe form of concessionary human eapital by sucrieing compensation with no reasonable hope for recouping the los Subsidiing ongoing enterprises. Some mature socal enterprises are notable to cover all oftheir costs, and thus require the ongoing support of investors ‘who are willing to forgo a degree of financial return for social benefits. For example + In 1994 the US Department of the Treasury rated Community Development Financial Insitutions (CFL) to “provide economically depressed communities access credit, equi, capital, and basic banking produc." Subsequent, the Calvert Foundation began offering below-market Calvert Community Note, which in tur ae faves in CDF-aecedited community ongaizations that provide below-market loans to nonprofit cnganaatons and small busineses in underserved communis + RSF Socil Finance offs the opportunity to inves Joan an investen funds tha support avait of socal entries in fod, agiclure, ceiueaton, ad other domains. Investors can generaly expect modest retun.! Grasroots Business Fund offers sila opportunities in developing counties with similar etme? + Aravind EyeCare, which prevents blindness India, urd ongoing operations fom earning, but depends on charitable donation foe expansion. (ne noteworthy form of financing ongoing enterprises involves the simultancous layering af concessionary and non concessionary investnents, with the former intended to encourage the latter. This isthe purport af some goverment subsidies, and private impact investors can provide such subsidies as well, = ‘The Community Development Financial Institutions Fund subsidizes CDFT investments (mentioned above) through tax credit to qualifying community-based ongunizations + Through USAID's Development Credit Authority, the government provides concessionary loan guarantees ro mobile commercial market-rate ‘investments in developing counteies © += The New York City Acquistion Fund s designed to promote the development of affordable housing by providing flexible capital for developers. ‘Ve City was joined by the MacArthur, Rockefeller, F.B, Hetoa, Robin Hood, Stare, and Ford foundation in providing subordinate debt and Joan guarantees. Mote oes non-concesionay investors inlude Bank of America, JP Morgan Chase, and TISBC-* = In 2012, New York City, together with Bloombeag Pilanhropies, Goldman Sachs, and MDRC, established Americ’ fist socal impact bond, the NYC Able Project for Incarcerated Youth. MDRC has contracted with the city to reduce recidivim among youth incarcerated at Rikers Ieland, With tris reduced bya grant fom Bloomberg Pilnthropes, Gokiman Sach invested $9.6 milion, which wil be repaid by the city on the basis ofthe projec’ sues. If the rection of recidivism achieves a certain target, Goldman Sachs wil recive a nail tet consistent ‘ith typical community development lending.” Some may find it galling that concessionary impact investors should facilitate non-concessionary investor’ receiving market-rate returns. Butif participating in a layered structure attracts the capital of market-rate investors who would not otherwise have invested, then, galling or not, the ‘concessionary investment has investment impact Concessionary investments, serving as subsidies, can have a redistributive function or correct for market inefiiencies—for example, in situations where an “enterprise caniot internalize the benefits of public goods chat it creates. But the fact tha an investment is concessionary is no gurantee that it will create et positive social impact. Subsidies can also mask an enterprise's inefficiencies and crowd out healthy competition. Subsdizing microfinance and «community development institutions have bee sth positive and harmfil in different cincumstances, ‘Non-concessionaty Investments While i's casyto see how below-market investors can provide capital benefits to an entegprise, i is les clear how and. when investors expecting market returns (or better) have investment impact. Yet much of the impact investment space is occupied by funds that promise ‘heir invertors both socially valuable ousputs and atleast market returns. For example 1 The UK fund Bridges Ventures asserts that it produces “both financial returns and socal and environmental benefits Among its featured investees is The Gym, which ‘provides low-cost health and ftnes facilites in purpose-built gyms which ae open 24 hours a day and located ‘mainly in underserved areas” 1 Equiltbsium Capital offers “alpha producing, sustainability driven investment products” in sustainable agriculture, green eal estate, and integrated Jand management? 1 Elevar Equity offers “outst ing investment returns by delivering essential services to disconnected communities underserved by global networks, And some instinutional investors tht are legllyrequied to invest the “whieh they presumably believe yield both social and market returns. For example: client’ money at market rates nonetheless make socially motivated investments 1 Pension fonds such as TIAA-CREF and CalPERS (the California Public Employees Retirement System) invest in enterprises sad to deliversocially valuable goods and services while producing market return. TIAA-CREF has invested 834 milion in ProCredit, which provides ered and other banking services to small and medium-sized enterprises in developing countries? CalPERS has invested more than $130 milion ehrough its [Alternative Tavestment Management's Environmental Technology Program, which targets clean technologies. For present purposes, we do not question the fund managers’ assertions that thee investments have stong financial returns, othe assumption that pension funds like TIAA-CREF make only non-concessionary investments, The immediate question is how such investments might have investment impact. ‘Under our criterion of additionalty, the investment must increase the quantity or quality of the socal or environmental outcome beyond what would ‘otherwise have occurred where the counterfactual i tht ordinary, socially neutral investors would have provided the same eapital in any event, Under the sddisionality criterion, how can an impact investor expect market returns and sill provide capital benefits to the enterprise? Afterall if isa good investment, one would expect socially neutral investors to be in it as wel, ‘Most economists agre that ti vitally imposible fora soil motivated investor to increas the beneficial outputs os publicly traded coeporation by purchasing es stock Suppo that a socially motivated investor bys stock a publicly traded enterprise to increas ts scaly beneficial outpus. Especially ifasisgeneilly the case—stock i purchased from exstng sharcholders, any benefit tothe company i highly atemuated ft exists a all? Tn any event, impact investing typically doesnot take place in large cap markets but in domains subject to market frictions. Although some of these Sietions may deter socially neutral investor from investing in socially valuable enterprises, impact investors may exploit them to reap both social benefits and market-rate financial rtuens. These frictions include: 1 Imperfect information. Tavestors at large may not know about particule opportuniies— especially with respect ro enterprises in developing ‘countries or low income communities inthe United States and other developed nations—Iet alone have information about their iss and expected serurs, Msocially neutral investors overestimate risks or underestimate opportunites, chy will undervalue potential investments 1 Skepticism about achieving both financial returns and social impact, Investors at large may be unjustifisbly skeptical that enterprises that are promoted as producing social or environmental value will yield market-rate reruens.5 (Of course, conversely, socially motivated investors! ‘enthusiasm for social outcome may esd them to believe erroneously that an investment is better than it actualy i.) 1 Indlexibl institutional practices. Instivtional investors have rules of thumb and practices—in effect, institutional heuristes—that simplify decsion~ maleng for typieal cases but that may exelude potential impact investments, which, for example, may require more fenibility (e.g longer time Jhorizons) than the fund’s practices permit. 1 Srl deal size. The typical impact investment i often small compared to similar private equity or venture capital investments, but the mini ‘threshold of due diligence and other transaction costs can render the investment financially unatractive regardless of ts social met 1 Limited exit strategies. In many developing economies, secu ‘exit their investment in a reasonable time js markets are insuiciently developed to provide reliable options fr investors to Governance problems. Developing counties may have inadequate governance and legal regimes, creating uncertainties about property sights, contract enforcement, bribery, and the fie. Navigating such regimes may equire on-the-ground expertise or personal connections that are not readily available ro investors at large. ‘We believe that non-concessionary impact investors are especially likely to have investment impact in conditions of imperfect information—for example, in social or environmental niche markets where impact investment fund managers or other intermediaries have spesalexpertite or intelligence on the ground. Perfect markets are functionally omniscient, but the impact fund manager says (in the words of David Chen of Equilibrium Capital), se something that you don't see.” Socially motivated investors may be particularly interested in ientijing these opportunities and thus may be abe ta have impact even at non-concessionary rates, This is the most likely explanation forthe asserted double-bortom-line success of firms like Bridges Ventures, Equilibrium Capital, and Elevar Equity. Even here, though, one might ask whether investments that seem non-concessionary on their fae incorporate hidden concessions in the form of risk or extra and costly du diligence tha ordinary investors would not undertake ‘The Arc of Enterprise Development The ideal outcome for most enterprises that initially rely on concessionary capital is that they eventually yield market renurns and atract socially neutral investors Her, impact investors have done ther part in bringing the enterprise ro market, the impact-investing story i ‘over, and the enterprise is now supported by customers and ordinary market investors Hopefily, this wil be she story ofthe Indi company Husk Power Systems (HPS), which transforms ice husks int elect: Since it nception, HPS has heen funded by pre awards, grants and concessionary investments" Between 2008 and 201, the Shell Foundation made for grants tothe enterprise, which povided fanding for RSD, pilot projets, expansion, and human esources development. Ta 2008, several social investors, ching Acumen Fund, Bamboo Finance, Intemational Finance Corp (IFC), and LGT Venture Philanthropy made below-market loans to HPS totaling 81.65 milion. Togethee with govecnment subsidies for companies providing power to off-the-grid villages, ther funds helped IIPS grove fom a smal start-up to an enterprise providing electricity to 20,000 people in communities accos Indi. In 2010, HPS rised $1.25 milion fom IFC,” and in 2012 secured $5 milion in a Series A financing round led by Acusen Fund snd Bamboo Finance in which LGT Venture Philanthropy sso tok part* The company's management an funders aspire tha its stock wll erentualybe trade on an Indian stock exchange.‘The moder history of microfinance tllsa similar story for an entire sector, but has multiple endings for diferent regions and institutions. The story hegins swith grants to the Grameen Bunk, BRAC, BancoSol, and other microfinance institutions (MFIs) to develop and prove the concep, followed by concessionary loans and equity investments for implementation.” Although even today many MFIs depend on subsidized investments, an increasing number now attract market investors!? For example, in 2007 the inital public offering of the highly profitable Banco Compartamos was vastly oversubscribed” and some mainsteam banking institutions, such as Citigroup, row have a microfinance business." This generally postive story has a dark side as well, however. As MFIs hecome more financially attractive, they may adopt practices that compromise their social missione— a criticism leveled against Banco Compartarnos, among others We descrie several potential solutions to this problem of mision drift inthe section on nonmonetary impact A Starting Point for Determining Investment Impact To say that on-concessionary investors can have impact in imperfect markets is hardly to conclude that they always do, Socaly motivated investors are na Tes susceptible to poor judgment and fads than cheiesocaly neutral peers. Whatever the merits of| ‘the clean tech sector, t would be har to attribute impact to an environmentally motivated investar who clbows his way into a clean-tech fund, pushing out socially neural investors who otherwise would have fly capitalized the Fund, ‘ads aside, placing capital in an enterprise thats already heavily invested in by socially neutral investors has less impact than investing in an “undercapitalized start-up or evolving enterprise. The preceding analysis does not provide anything approximating a formu, but rather seeks to provide a starting point for case studies ofthe investment impact of particular transactions "Nonmonetary Impact Beyond just providing capital, fand managers, together with investors and other actors, can improve an enterprise's socal outputs by providing a singe of nonmonetary benefits, We describe them in approximately the order oftheir appearance on the impact investing stage Improving the enabling environment fr social enterprises and investors Finding and promoting impact investment opportunities Aggregsting capital and providing other investment services ovdng technical and governance assistance to enterprises, and helping thera build strategic relationships Gaining socially neutral investors 6, Securing and protecting the enterprises social mission Before discussing these activities in deal, we should note that some nonmonetary benefits are closely related to impact investors financial investments. For ‘example, an investment may signal to other potential investors that the enterprise is worth their serious consideration, or socal motivated investors may ‘gin sufficient contol of an enterprise to protect its social mission, Returning to the role ofhuman capital, we should also note that non-monetary services are sometimes provided at concessionary rates. The employees of impact investment funds o other organizations in the field may in elec subsidize the proces by accepting lower compensation than they could receive in purely commercial settings, 1) Improving the enabling environment for social enterprise and investors, We begin with macro-level henefits that flow to a sector as a whole miter than to any particular enterprise. Governments and some foundations provide fanding to improve the socal, political, and regulatory envionment in which social enterprises and their investors operate—essentially a market building activity. In Priming the Purp, Mat Bannick and Paula Goldman ofthe COnidyar Networks describe how "promoting competition, ensuring consumer protection, and promoting entrepreneurship can speed up ... the development ‘of industry sectors" For example: 1 "The Boulder Institute has developed scoring and rating models for microfinance institutions, established benchmarking, and introduced an open- source management information system, Its ako trained thousands of MBI practitioners 1 "The World Bank’s work on Governance and Public Sector Management seeks, among other things, to improve the rule of law and reduce coruption in developing countries In addition to providing public goods ofthese sorts, a well-designed set of investments in sector has the potentil to catalyze maskets to a greater extent than the sum of random investments in individual investee entenprise. Investments in microfinance institutions have had this effect in many regions 2) Finding and promoting impact investment opportunites, Impact investment intermediaries ate critically important in discovering investment ‘oppornuitics and bringing them tothe attention of investors, thus helping to overcome the information failures previously noted. For example: 1 Agora Partnerships” identifies early-stage impact investment opportunities in communities across Central Americ, focusing on small and growing businesses that ae too large for microcredit support and too small fr traditional bank or venture capital financing Its clients, such asthe [Draper Richards Kaplan Foundation, engage Agora Partnerships to pursue impact investment opportunities in che region, 1 Villgeo (formerly the Rural Innovations Network) connects sed funders, such as Ankur Capital, che Unitus Seed Fund, and Accioa's Venture Lab, to socal enterprises working to improve lives in rural regions of India that would otherwise have litle acces to early-stage funding,= ‘The Internet is creating new organizations, such as Kiva! which fcltates peer-to-peer lending for particular projects; Microplace,” which facilitates investment in ongoing soil enterprises; and Indiegogo,"! which helps provide capital to start-ups ‘The value of these activities depends on the quality ofthe due diligence done in selecting enterprises and, ultimately, on the enterprises socal impact, 3) Aggregating capital and providing other investment services. Fund managers and other intermediaries reduce transaction costs by creating economies of scale, They may also provide technical assistance to impact investors (rather than tothe enterprises themselves, as discussed in point 4 below), Examples include: 1 Bridges Ventures, Equilibrium Capital, and Elevar Equity, mentioned easier, = Imprint C ital Advisor, a San Francisco-based advisory frm, belps foundations and family ofces identify domestic and global opportunities for impact investment, For example, Imprint guided several foundations to investi Southern Bancorp, a US development bak that provides banking and nonproe services aimed at reducing poverty and unemployment in distressed rural comanites Tr ao helped gain apport for Revolution Foods which provides healthy meals o poor public school students 4 Providing technical and governance asistance to enterprises, and helping them build static relationships. Fund managers and other thind partes provide non-monetary benefits, ranging from technica assistance to nascent enterprises to helping more matute enterprises develop relationships with customers, supplies, and other partners For example 1 Endeavor Global draws on experienced busines profesional as well a teams of MBA students to assist promising entrepreneurs n mestng busines challenges—fom rising financing, to human resource development, to ereating and negotiating term sheets.” + Root Capitals Financial Advisory Services ae designed to strengthen the busines proces of social enterprises with high growth potential in Alfica and Latin America, Training modules focus on business and administrative management, financial planning, risk management, accountng, and loan applications, Similaly, alongside its investment fund, Grassroots Business Fund has pilanthropcaly supported arm that provides technical assistance tits investees.™ + CGAP isan independent poicy and research center dedicated to increasing financial access for the worlds poor. It provides marke intelligence, promotes standards, and offers advisory services to governments, financial service providers, donors, and investor.” 5) Caining socially neutral investors. One ofthe unfortunate characteristics of imperfect impact investing markets i thei inability to attract the large majority of socially neutral investors who demand macket returns, Where sch returns seem plausible, s respected institution can signal t other investors that a particular investment or an entice sector that others may have thought dubious is actually worthy of consideration. This can prove patculaly important in attracting second round Financing, once the investment target and market have heen validated 1» The David and Lucile Packard Foundation made an initial $1 million equity investment, followed by 2 low-interest $10 alin loan, in EcoT rust, a sustainable forest management firm. The foundation's general counsel noted, "Our main reason for investing in EcoTrast Forest in ‘this way is to demonstrate that sustainable forest practices can generate a profit so that mainstream investors will hecome more interested ia it." + Trillium Asset Management isan investment advisor devoted to sustainable investing for foundations, endowments, and high net worth individuals and fares, Trilie belives that the decison to add several CDF investments to its ist of recommended community investment ‘opportunites led to an increase in such investments by individuals, mutual fund investors, and family offices ™ £6) Securing and protecting the enterprise's social mission. Enterprises that produce socially valuable products often begin with a social mission. Enterprises whose social value comes from operational impact (eg, good envionmental practices or community benefits) may incorporate that mision from the outset ‘or have it pressed upon them hy investors. In citer case, over tiene an enterprise's management and directors may discover opportunities to increase nancial returns atthe expense of social impact. For example, the manufacturer of products or services designed for BoP clientele may find ie more profitable to market to wealthier customers of & ‘microfinance institution may screen out the neediest horrowers or dif into predatory practices. The dangers are especially acute a the enterprise scales up and takes on new, socially neutral investors. ‘There area numberof possible protections against such mission drift including embedding the mission deeply into the enterprise, contractual arrangements, B Corps and other corporate forms that requte or encourage producing social benelits that may compromise continual influence of socially motivated investors." Examples of the last include: racket returns, and the = Acumen Fund: Earlier we mentioned Acumen Fund's investment in Dial 1298 for Ambulance in India. As a sharcholder, Acumen secured a seat con the organization's board that allowed it to pres for changes in the companys business model that sucessfully increased usage rates among the poorest residents 1+ Embrace and Skoll Foundation: Embrace, producer ofthe Embrace Infant Warmer, recived below-market equity and loan investments fom the ‘Skoll Foundation, which encouraged the organization to split into two diferent entities a S01()(3) non-profit that focuses on distributing Emmbrace’s healthcare product o the worlds most impoverished communities, and a sepante for-profit social enterprise that manufacturesInealtheare products for paying customers. The business subsequently caised 85 million in capital fom Khosta Ventures, Capricorn Investment Group, and other for profit investors * Vox Capital and Sauti: Vox Capital is venture capita firm that invests i businesses serving BoP populations in Brazil Its investe, Sau sels information about fre public health benefits to companies, which in turn prove the information to their employees, Recognizing the potential for mission deft because i is more profitable to deal with companies tha have relatively high-wage employees, Vox Capital, whichis on Sausis board, has linked its own caried interest to the achievement of socal impact metrics based on serving BoP workers as well a to financial metrics. A Framework for Quantifying Nonmonetary Impact As always, the inquiry into impact begins with the question: does the activity increase the quantity or ‘quality of the socaly valuable outputs produced by the enterprise, compared to what would have occurred in its absent 120, the question chen becomes how muck? A good starting place for quantifVing nonmonctary impact isto consider (2) investors’ willingness to pay (WTP) for services such a nding opportunities, doing due diligenes, and reducing transaction costs; and (2) enterprises! WTP for technical assistance and the like, However, because some of the benefits of improving impact-investing markets do not directly redound to particular investors and investee onganizatons, but instead acrue to the sector as a whole, a full assessment must also account for those external benefits tha ae not adequately caprured by the participants’ WIP, ‘Where an intermediary organization secures new investors in socially valuable enterprise, its nonmonetary impacts measured by the investment dollars that it brings to the table that would not otherwise have been invested. It is worth noting that the nonmonetary impact doesnot depend on whether the investors asisted ae socially motivated or socaly neural. Indeed, subject tothe problem of mission drift mentioned above, tothe extent that impact investors and their allies atract socially neutral investors to socal enterprises producing market-rate returns, they may multiply their impact, Making Use of the Impact Framework How could an impact investor use the framework developed in this article to determine whether a proposed investment in an enterprise is ikely to have social or envizonmental impact? First, the investor must identify the socal goal he wishes to achieve. Let's suppose that he wishes to reduce poverty in an Adfican country. There are many possible strategies for achieving this goa, including work in health, education, mierofinanee, or agriculture, and creating businesses and jobs in almost any sector. Existing sidies ofthe relative impact ofthese strategies do not reveal any single best one, but suggest that supporting emallholde farmers in the region is among the promising approaches. These studies may provide atlas starting point fr the investors estimation ofthe social value of an ‘enterprises outputs in this domain, ‘The investor must then identify which agriculrual enterprises have a tack record of success in improving the economic well-being of smallholder farmers om if they ate start-ups, have & hgh likelihood of success, Although IRIS and GIIRS include some agricultural metrics, they do not provide much help in assessing the enterprises’ impact." However, the investor may beable to get advice from organizations with on-the-ground experience. Indeed, rather than invest directly in an enterprise, he may seek to overcome information deficits by investing through a fund manager with experts in the sector. In any event, the amount of effort demanded ofthe investor depends on whether intermediary organizations can provide some of the nonmonetary benefits described in the preceding section, Assuming thatthe investor has identified a promising organization and done due diligence, he must consider what sort of investment—equity, debt, terms, amount—will improve its socal outputs, and then predict the expected nancial return ftom the investment. Estimating the expected financial return from an investment i a dificul but familiar exercise, Estimating social return is intrinsically much harder because ‘of the complexities of placing values on social and environmental outcomes and predicting what outcomes an organization i likely to achieve. Estimating the value of nonmonetary contsibutions that dzetly benefit an entenprise i «commonplace task that an onganization engages in whenever it hires consultant. Estimating the value of nonmonetary contributions to an entire sector is afar more speculative tas, ‘Tn contrast to enterprise and nonmonetary impact, astssing a particular investments addtionatityin order to determine its investment impact isa novel task that, so far as we know, has not previously been undertaken. In this artile, we propose the questions that underlie this analysis. An investor who ‘expects market retuins must ask whether his non-concessionary investment sHikely to have investment impact, and is, how much, An investor who is prepared to sacrifice market retuns should ask how much concesion i's worth making fr the socal value produced bythe organization.* ‘The estimations, assessments, and evaluations described here all involve costs—greater or lesser depending on ther degre of rigor. While this article provides famework for undertlkng such analyses, we have no a prior commitment toa particular depth of analysis. Our own view i that research and ‘evalustion costs must be justified in terms of their likely benefits in improving the investment decision In some instances, evalation—sepecalyof an “enterprises impact—may be of great value to an entie sector of enterprises and to tele investors In these cases the sector would likely benefit impact investors paid thei fue share of the evaluation cost-—something that most philanthropists have not done. Conclusion: Next Stepsin the Analysis of impact ‘We have outlined what we believe tobe the three basic parameters of impact:1 Enterprise impactis the social contribution of the enterprise itself, whether fom the enterprise's products or from operations. 1 Investment impacts the conteibution that investors make tothe enterprise's impact by providing capital that i could not otherwise obtain, or by providing ita lower cost. 1+ Nonmonetiy impacts the contsibution of activites besides the financial investment ite tothe social impuct af an enterprise or, indeed, to the social impact of a sector ‘Whatever information an investor may need for his individual decisions the field as a whole would benefit fom more empirical analysis ofeach ofthese. Hece are afew areas that we believe are ripe for exploration and improvement "The immediate pressing ned in enterprise impacts fr robust measures and third-party assessments of enterprises outputs. As with their analogs in philanthropy, IRIS and GHIRS fice the challenges of multiple, complex measues, the costs of measurement, and investors’ limited interest in knowing mare about impact” GiveWell, the Center for High Impact Philanthropy, Philanthropedis, and Charity Navigator 3.0 are boginning to provide donors ‘ith information about an enterprise's outputs, and occasionally outcomes, inthe belief that donors will respond to reliable information presented in 2 clear format, It seems reasonable to believe that impact investors would be atleast as responsive to easily digestible information, In the short term, we hope that B Lab, which administers GIRS, will continue to refine the distinction between (1) products and service versus operational metrics and (2) outputs versus ‘outcomes. Better collaboration between the impact investing communi assess enterprise impact would likely improve chese efforts organizations promoting corporate social responsibilty, and groups aiming to ‘The assessment of outcomes cannot be routinized in the same way as outputs, ur will continue to requte large sae studies of the srt done by the MIT Poverty Action Lab and Innovations for Poverty Action—studies that, realistically, wil be funded only by foundations and international development ‘organizations Investment impact and nonmonetary impact are less well understood, and are in need of rigorous casestudies that examine the impact of activities in a vatiery of contexts. Questions tobe addressed include: = Non-concessionary Investment Impact: Under what circumstances do non-concessionary investors have impact by providing capital thatthe ‘markets would not otherwise provide? We believe thatthe investment impact of non-concessionary investments depends on exploiting the fictions ‘that characterize imperfect markets, but it would be valuable to see how this plays out in actual cases 1 Reducing Frictions: How can market friction be reduced so a to attract socially neutral investors to socaly valuable enterprises, and who has the incentives to reduce them? ' Capital Structures: When are grant preferable to equity investments and vice versa), when are equity investments preferable to loans (and viee versa), and when are the various forms of support and financing complementary? ‘= Nonmonetary Contributions: How can one monetize the value of vasious nonmonetary contributions to enterprises and investors, and how ean ‘this analysis be usefilin prioritizing opportunites for nonmanetary support? ' Government and Philanthropic Roles: What are the appropriate roles for government and philanthropy in cresting infrastructure, improving the cavironment in which impact ivesting takes place, and providing subsidies? And under what conditions do subsidies crowd out market investors oF have other counterproductive effect? With enough casestudies and some good luck, addressing these questions would produce useful generalizations that could guide the work of enterprises and intermediasis in the field as well a investment decisions. Our hope i that this article provides a famework for undertaking such projects Appendic: The Investor's Utility Function Here we claborate on the question (raised in the setion on enterprise impact) of what dollar value an investor places on achieving a particular social goal. We look atthe question fist fom the perspective of an ordinary philanthropist and then from that oF an impact The philanthropist. Imagine a philanthropist who is considering supporting a nascent organization with clinis that provide vaccinations in sural Afican communities, The organization is incorporated asa for-profit enterprise, but it needs grants or concessionary investments for its start-up phase. The philanthropist is considering making a $500 gift to help build a clinic in a new village. The fully loaded cor inching allocated capital expenses) of sudministring a vaccination il be $25, Should she make the gift? "The philanthropist does some research and estimates the socal benefit of one vaccination to be $100, taking into account the benefit to the individu receiving it and those indirectly protected irom disease." Thus, each dollar ofthe cost of vaccination yields 4X social return. Her git of $500 will produce a socal benefit of 82,000, She thinks this sounds like good deal, and writes a check. ‘To understand the philanthropist’ utility function, les see how a modification ofthis scenario might affect her giving. Suppose that thatthe socal value of a vaccination was only $30, sill more than the cost, but vastly short ofthe 4X return? Suppose thatthe philanthropist has an absolutely fixed charitable Budge, and that she is going to give away $500 as long as there's any worthy cause. IF she has goals that she regatds a8 comparable—say, providing clean water or ani-malaria bed nets tothe same communities then she might look forstrategy with a better social return. Bue if her only pasion is immunization, then she should make the $500 gf Suppose, alternatively, that che philanthropist has tentatively earmarked $500 for charity, but might give more or less depending on how attractive she finds the opportunites. In other words, she is willing to trade off charitable giving and personal consumption. Assuming that immuniaation is her sole passion, the reduced social value of the immunization may lead toa decision to spend the money on herself rather than on the vaccination, In principle, we could draw a utliy function to reflect her tradeot for different social resurns on her donation to the program. ‘The question is one of opportunity costs—of how the gift would affect her budget for personal and other charitable expenditutes—and not only one of social reser, The concessionary impact investor. Now let's replace the philanthropist witha concessionary impact investor asked to make a loan forthe sme purpose. IF the clinic could borrow at market rates, it would have to pay 8 percent, but its director asks the investor for a $10,000 one-year loan a 3 percent interest, thus saving $500. The investor could ge 8 peroet in the market; thus at 3 percent, he is making a concession of S percent, of $500. Assume thatthe investor has plenty of cash, so that the loan presents no liquidity problems. He is being asked, in effect, to make the same donation asthe philanehropist and he will take into account precisely the same factors a the philanthropist in deciding how large a gift, if ny, to make. That i, he will ‘consider how much social value hes providing and whether alternative uses of his money would produce move value “This example also suggest that it may be somewhat misleading to characterize the concessionary impact investor as making 2 “eradeof between financial and social return, The only role that financial return plays inthe impact investor's decision is that it specifies the amount ofthe concession —in effect, the sive of the ift—that he is making tothe enterprise, Perhaps some investors will make a tradeoff between the sizeof the gift and its social value. But even if ‘one could caprure the tadeof¥in 2 coherent uel function, itis nota tradeoff between financial return and socal return ‘There is however, one tradail the investor should consider the social benefit ofthe concession versus the financial tur from investing the same amount in the market, Our hypothetical cate stipulated that he could get an 8 percent return, Bur suppose tha the market return were vary greater, so that it ‘exceeded the socal benefit of the concession. Then, he may invest the money now, and when the returns come in, be should consider subsidizing the vaccination clinic perhaps even in a larger amount. Te bears emphasis thatthe preceding analysis dacs not entail that philanthropists or impact investors who ate considering alternative investments should aot ‘consider their relative expected social return. For a rigorous analysis of sucha proces, see Michael Weinstein and Ralph Bradburd, The Robin Hood Roles fe Smare Giving (2013). ‘This article is licensed under a Creative Commons Attibution-NoDerivs 3.0 License Read responses to the condensed version ofthis article Notes ® See Pal Bre Hal Hane, Kein Law, “Caled pc” SIR, Wine 2 iim ps; The Wii nd Fa Hee Franson “Dig Goud Tae and ener Tran Jr, 208, hep hone hele ype Dong, Cod Toe ad See Teneo * etn enon New Conroy Lea do 2 hpdhneefciconmaniyetcep ep panne fringe by e eqyfaneeanda-4-llon thei “Te a poner an iment tha vem nonronctona en ie aay lets her concn he rm of em and oy ee gece tha rey rer wel at ke efor tnd Sethe eco on Noort Tact bdo: See) Andros Ales Denon Pate Gz A Tea of War Glow Ging” The Economic ound 10, ma 0 Je 1990 page 6-7 See TFC Alona A Paine” (Cg Vents Parhenon Crop,“ Ip” 3 "Te cpa ne pig ell ence se ou ref sc ee geen men eae ce ear, Hamer, sme once Spree th for ate wilig ok cincesion we e b Re * or en, DBL Loves nips ein ey vd with te nate Tia Moto nginx teed Cala omni. (Pret by Nay din Pa Recap vesting he Sted Grate Schon Buses, Or 2, 302. Se erry npn ier sat) Cp nyse 012923 Ica per brea crprtons sive mte0 "We ts abo’ lol of ening smn on oven mine pin which ie oe mh net) Why do we spre Baan ad ol ns mun han eg of ee acing atl ene). mer fae ab ne Ale eet ca, dea ete ment newer a veoh bg with ancl go nd hn cone whether me ial concen il ppc Moto, empties th pease dco een if ime ssl si thy da cree iain iw fhe ox pat by Por Sings The Life You Can Save: How ‘Doyo Paro End Word Povey 2010) ora pot dential atcha eatemen of ng, ecole esas bi by night ou oy wy ow ba whe ‘hey cnc fom ee lng other ad a cil deca re dreary ed oneonnyfr abin "eer, nny CK rtd a Se Har, er elon ope nna a 2 day been pedi ops Batom of "Cf Ese Fil, Ressenting Pilly 20) Hwee, erent bj poner some ptt ron ar anening mpeg the ce tht we dy eit ar split aya al ol, the ore cn feng can bpd oly apc vol, yo cf om wk of mee sine ding poe Det yang ene a peeing "+The more rl otto sn ht of ely invetr? whewzen tient tht hy be ail lit Sr Pl Bt nd Hal Hay, Money Well Spe A Stet Plan fr Sart Philp, 8 heer 208) "The chanctraion flere asl nea ce on tir tonne nt en anette out pd claremont inact in ft ep ob ence See oe Nae nvsig Ga hp te cn 0270p nce vei utp 0 Whe ndoument mange ke athe wa[Newent shi why he ndoens need in manficote, oe sal pone ns tht "he cre dat fens ao ea eee mine ee "Wie ary on ter comieraonn, dd i ite acu dpi nent” Temas soni rte cond bce he eee ma ret the cece inp ef anime er ante ths kag hear pac ex pore Baten pon of ape putin cond fen rea ter fra wis "Ses Olen nd Be Gai “Canlpt Appnstno npc Menten Sc Vn Tecmo Crs, May 2012, p/n ne eel 207V0/SROL rn pl Cal 1,202) Tae ancl Tims Lan eon cm Teen SC (hy 20 2 5 J Kars nd Mare Kram, Cali Inpatient pet 2 Forename Montane, Maso tel IGNIA “ar hay proving atl seg nr gh pat saa eis w a beer enable then ache sone ncn The commence sre ager ras an wl rer the dele of ond ane gacoms/mper p p Sy Ast Bae ead ahr Dall Poor Bona: Radial Rehikig ofthe Wy 9 Fight Clabal Pavey Obs Ali, 207), xd Desa Kaa nd Jub Ape More ‘Than Good Intention: Improving the Ways he Worl Poor Boro, See, em, Lear, a Soy Helly (Png, 202) or een aa fhe ele feo 2 fount Hence Feast, Easton Princess Paces, pon hel ayia enktounton psn poner an pit orn cape meen ee CGAPs 2071 sy, Latest Fang fom Randomized Evans of Mirotinnce Ths tego fr expected ae eis een apd mc pers ned by greens oily: One ight ott wher pled e-protenepi he enor hl ree epaliaton rr than ped ct. nay eet tagh fen cement pea pc wee known i he esc where a pt Iovrtmon reqs rsicion fia exante Bese themes tienen ot sme, he eoaon mat Died onus ko re Te veg cmap cape ta (ER rsd ero esment (SROD), cape yh eon 0 eile Lehn of Seren Ca) “The cleeton wal esl more complied fae apd dou ico free a oc ny athe, "A compte tai wold tae get sn. To i ip tr ral ements ut an oxo 2 Fora oan eal Ht an! Tans Keep, Probl Sang, Deion Making ad Profsonal ugmens pp. 3638 (Oxf Verity Pre, 2010) Anievetor might a be cone tee whence at er ene’ von fan sei cha ecto ee te, mig germane ec igh te i. Scot 2 shove 2 Monitor lt Tveng Sor Ss & Eesonmerl lp 03), p/w sire coer we hk nesting gat lve Peed inset ae ons oe eral Reverie Cole ecopuning tt wave pany pores scp one oe of thous xe apes ad hereto osname espionage IRS, "ro Reed Ice pmo hater & Noe riante Foon Prag Reed Tevesimens Ag 3,219), PR coun wd atresia na en a ye ‘Te aerate th the exe yell pitied wd hat nal nue eed arial input rere eich ning ey ive). We eae ht coe ke pode ie ofthc fr thee ton we sre atrial the aes ott i oe xr ote er af pt Gas ere t dB sn ure 201 np nein athe Stared rate See of Bais Bue rosin fino ds oem mpc For xm, might em shih enh hey compromise heey ope vc leony nig the nant af cap ory gap lhe alae na coal ory erage qa auc tha ning the ny aon cp See Haney Kah Asis arena of Habe Kay, Fo Hagin to So The Cs fr Psantopy in Inger” (Mito roo, Apel 202). > pects a, Cala FeWons nel on he Pens Fe Fo Fanci nae! Gina Jonna Har, Di 198 er Asan: Maat EMIS in Ma Cala Cer Cols Bn Seto! Sp 26,2010 apie slaw (My 1, 2072) Capendnce ws Wil For outer an CEO of Rast ap, Janay 62038, S seein gnie 27 US Treuuy Deuter. "Conant Fanlisting sap uly 10,202). See ale Shy apd Cs Lao, Connecting CDF Io he Secily arponieInetr Comma Ver Foundon 310 plod govinda oeingN2OC DFTA Seay Repnniimet20C oman pep ndncleaeceaginptocal For amp SF Socal loveseat oad a naa 0.75 on mathe, whch compan sina hak {crx many set snoop he ana ore by FD Lan pl esr 100 dng thy yt. Ee compre with Don Sar, Pest and CED of SP Scat Praca 2013 ‘eplenwabind or oe © pfs Caren with Rae Kats Jy 23,203. gue oba Carey," How The Cony Rema Act ads he Hong Hab La Lending” Busnes nie 209) ap fhe gona we dlsoomic ra ae e-abary ting weno Agent ayo pts soe avn ate strane tan hy thse mole, Noe that an iver ets th are apis te Pou of palin of ebro gates and comers ered ancl ee "acon Ts th pec of govern ns dos ec bebe tester ener tne the eet fy cares Se Bags Veta and Patnon Gap net ela phen igen scored pacer pe We db te axe mero es concn ee they ently dh nao gan der the Commy Reet Act ge Shee The NYC Abe Pager nacre Vuh, Aga 2,202 henner op 202h fc oheep Ser ab Bee Vets ad Pete Gynt pc, bch eres any "onl inet wre by Be Vetice ie ep dpenenren come rdgeenecom/lesivesinghleanyo0Ree lien eg psa! pcre! TIAA-CREF so mater retour ing nonmetal ly, rare ning Fo xan 209 ce mathe of 2 ion ShorBark Cs wih nese cnt eee (TAA CRE aso phot pe out case peen 6 l,y 9,2007) ‘uprupon tars aly meted metre dey ome compa ym an nl pico For animist ie Goole dou ed contain spk lotrel i potent Sena tu, Gogi' PO wig una howe in along el ian w pare hardly Sem the pny. Typically, on Bred amr finan iver prea the IPO, Of coun, tia pce might be ce eam of he aly mated pope to who thy ll Eve fas "yoann: the mente fey nosed epee ea yey ml eerie werner and he cpl wold he el ie al pt i ye een Ieismoch ang at» oly mde dean nots phe ska pone of acily ephe erin” Suis ene he hte. Tough ey ave be ‘wl ot athe oman cups Thi wn apc vn fhe ie mpi un ntedndefthe 2 etytdve stacef compe dig busines ‘Sou An cough il edna’ pi opie ne jc. hp opal Sener. ‘Are wt Bil McKie a ben edgar oie rom tho nl ney, See pnt! 202 eo enon ° Forcanple oot pict ivr ut heeled a mei eal veo wee sual sepals the eu om cone ernment pj Come veh Mul Doe, Weta Gon, Spent I, 2012 "Se "Fr Beit See The Cae fc Piston pac Iveing” Mein Gp, Ap 202, ab: Dec et, “Cong th Per Gan? ge steve ie ring pone ey eae 120A power SIDin eed hen “Ce Sty Senay: Hak we Spo nn” 07:1 tp rw enn eines Oly 1,202, Rann Che Sly Suna Ha Pos Syn eas 203 p.m acc oi BedhQOvienr Gal 1,201, pte sewer con!> bpdhewehisdbiaieonvenpik pte sei lin forepmneilMOSEL ce ° Easeeg mea acaling DF ind Cn he comand ts aot copay By ooeing a ning nent eye lection SA-HUSK- POWER SYSTEN Suge SelionnSiyfning, 0859855 ‘7 tpe per ImewarsHandbeak Len fom the Walt Misescace” CAF Vesacoe Mat Iigh Sy, Fs En, Fey 207, ages 910. beptimnecaealoy/pfiepeeste epers200 *e Freig Cplavevnet tea cog nl ens? CGAP, ebony 208 hyn pra fbnle piesa nian atncnpocatand dae etre Sc for nal, ind Roe, “CAP Reet onthe Canara ntl Pb Oey A Cae Soe Micon nee Kate ol Pi pie ge a penn pple opal placing ey once ne Cloeptinn sep conlamisennce! © Sex gy SRS Une Sight in Sey” The Wal Set ora Fan 24202 hpi mj s/n O00 OS27O2SP ASTANA i Did own, Due Diligence’ A Inperiont lagu Teo Misefnace 2012) apemserewarg/ersyeces. rt juss ‘©The lg vrs Had Leo fom the We of Miniter” CAF Verne Mat night Sri Fi aio, Fey 207, page 6 Septic 9S hc dun nf WBSITE EXTERNAL, TOPICSIEXTPUBLICSECTORANDGOVERNANCEN tens MDK 2020612 psPK 210058 PK 210062 eSHePKASSI5 Or Ages Parnes, agora * gtpdiewnsli on! © pion eno ager aarp com! pfeil com! 2 ough time oan he ol mpust fhe era opnton, hari ie dob the nme enendos cy fr edu th corto temeton, > bapdtnwm igi Souter Bane le ees 1 millon ere ap eee under ral coma” W.K Keg onto Pr Rs (Pb, 2010, elie em/Arie/ 2010/2 Sothe-Hannpceer-mo eestnent rpeOy 32,202 ‘Meh Gell fips Capa el por ut wh foun granting ae cat th ane eu, progr fcr a mang lvnents hgh his trans unsertnding of Sela “ering renee” thet nee the anton edna gana ar wel Ma Bank ir New por att cone with ‘elon ctr inp ss koe af ow ede aa ein, "pen aspect std fe coneos anlBaigh2hc\20Panet420GyhIOTheORUANa0ORKRACeo in ‘sontnecanpnainace20Enepret ps apdewenteac ar? ™ peg ang Sy, Vie, meno’ ah, ac oil ener nr, ing sleeper snes mds, ef and ade stot my ‘gets retested et tn of aig, Sx ae lag Cop, foes Ds Slept ip da og ie cap/ins. Te Cent Fania Seva Inerain poe mens certo cme a anc ‘Steph Scum, “To Adve Their Cae, Pandan Boy Seka” The New York Times Novenber 242011 herr tins co/201/1/28hane andar ome 6 ead of ompinie bagel scene Ags 5,202) Camenatn wth Lin MiKo, Vee Pret of Morin, Tell Aset Masry 24,213, Se honing ere aceon leet ard aunt, Connecting CDFle whe Soil Responsible Inver Comin. * ex for xl, Rid Rog, “CGAP Rfeton nthe Capra Pable Oo A Cae Stay oe Mirae nett Rate Pl” elie ge peo op sectng-oparano nal pk wnng- ave iy ninnace mce eer perio Pr aorus apne sou he eet ee oe como ors Arony Pe ad Res A Ka “The eth Abt Ben an Je ane the er a repr aplenty ths ben ee fot oa a, “Di 1928 Alan: Mreig EMS in Mares 4 ah Seep epsom veg en ce oye sghng trey veingbacahdBe 23029 merhe, YMESIS © Bae biggie © A 2010 sanef peop nips ies gg tht vat jy ae ot wing make ey efi tintin soa acc eon inp of ie lnonmets Sey Popes pel one ert Fal pe” Some neve arginiauns ch singh ae providing mae ver ot. night, "Tice oer ote ya lag aval oh rato, Seg heel iaenatnn nic rennin Bache. Bete sd sone tau Plann rnp ee) re reich bce, any beh cla that she Pet ns ciao Fr ene she ye ee ae than he at ppt ree of tc oath ht cate gt ne med, But wl a ti eng ile "Pr cnampl se ight he parca each ree pony he Leen by Ging Fauna, hyo xnngyengion yo se may hat edie idin 2 ener nd Pal Bt csp at Sid Law Showa cer Grd Sof Bone, Fn 2009 202 he we ret th Wii nl Fr wt asin, ely oeiea tow in char of cal Pisce tthe Hels Found. “This cy ha benedeni i Bet cd om omens sa Bad et son Jen Bo, Pa Ka (hs encouraged wy shanna nk oof metas), Dwi Chen Ss Dicer Mie Dre, hte Ely, Why Fst, Roi ib, ob Gain ow Gari, Ha, Bet Har Lanse Hoan Miche! Koo, Ay Kemet, Beas Loe Anion Bog Levi, A Mint Bil Mee, Cals Mae, Mak Ng ees Nic, Fas Pe Gna Set Pci, Pl Pl Chis Ram Hal Rave, Myon Sn, Don Sher, Dee Scr, Kes Sgt, Ewl Sa, Mais Spence, Mia Spence, Crier Sts Adin Tabor, a Teta, Mak Wolo ropa Ray ‘Are oon CEOs, parpas ina Sr a eho shy miata ne lat on Fang Sail Inga the Stand Cadate Scho of Busines seats he Stanne PACS reworked prpan eae the Ope Sec) Foundations Tan wcu act epoca ror ot ara hse any aman wiht ac Belg ca Tags Acs and, Cae npc, GIRS IIS, Inte, Miran, Parma Mes, Piatopy, Kaci, Hove Cope, Sk Foudo, Soc lps Bee, USAIDyou like this article enough to print it, be sure to subscribe to SSIR!