Results-Based Financing Through Social Enterprises A White Paper for the Global Partnership for Results-Based Approaches, in Response to the Covid-19 Pandemic @2020 The Global Partnership for Results-Based Approaches The World Bank 1818 H Street, NW Washington, DC 20433 USA Website: http://www.gprba.org/ Contact us at: rbfinfo@gprba.org All rights reserved This work is a product of the World Bank’s Global Partnership for Results-Based Approaches (GPRBA). GPRBA provides innovative financing solutions that link funding to achieved results. GPRBA’s results-based financing (RBF) approaches provide access to basic services like water and sanitation, energy, health and education for low-income families and communities that might otherwise go unserved. By bringing together public and private sector funders to maximize resources and designing effective incentives for service providers to reach underserved low-income communities, GPRBA gives people the chance for a better life. 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All non-Creative Commons images in this publication require permission for reuse. All queries on rights and licenses should be addressed to GPRBA, The World Bank, 1818 H Street NW, Washington, DC 20433, USA; e-mail: rbfinfo@gprba.org. Images on pages i, v, viii, 3, 7, 8, 18, 20, 22, 25, 26, and 36 are used under license from Shutterstock.com. Page 18: Mukesh Kumar Jwala/Shutterstock.com Page 20: stockpexel/Shutterstock.com Results-Based Financing Through Social Enterprises A White Paper for the Global Partnership for Results-Based Approaches, in Response to the Covid-19 Pandemic Maitreyi Bordia Das Ibrahim Ali Khan Elaine Tinsley CONTENTS Acknowledgments vi Abbreviations & Acronyms vii Summary ix I. Responding to COVID-19 Using Results-Based Approaches: 1 The Role of Social Enterprises Why Focus on Social Enterprises? 3 II. Social Enterprise Responses to COVID-19 5 III. GPRBA Mechanisms Using Social Enterprises 9 A. Defining the Results 9 1. Help Reduce the Spread of COVID-19 10 2. Help Minimize the Socioeconomic Impact on the Poor 11 B. Data Collection and Remote Verification 12 1. Data Collection by Social Enterprises 12 2. Remote Verification 12 C. Financing Mechanisms 14 1. Financing through a Single SE Intervention 15 2. Financing through Multiple SE Interventions 16 3. Pre-Financing 16 4. Retroactive Financing 17 D. Working with SEs Using RBF: Five Recommendations 17 Annex 1. Social Enterprise Responses to COVID-19 19 Annex 2. GPRBA Project Engagements with SEs: Three Cases 29 Annex 3. Pre-financing GPRBA projects 35 Annex 4. COVID-19: Using Data Collection Platforms 37 Annex 5. Just What are Social Enterprises? 39 Endnotes 43 A White Paper for the Global Partnership for Results-Based Approaches, in Response to the Covid-19 Pandemic  iii BOXES Box 1 The Global Partnership for Results-Based Approaches 2 Box 2 Social Enterprise – a Definition 2 FIGURES Figure 1 Applying the IBM Process to a GPRBA Project 13 Figure 2 Financing Mechanism for a Single SE Intervention 15 Figure 3 Financing Mechanism for Multiple SE Interventions 16 Figure A1 Contractual Arrangement and Flow of Funds: 30 SE as an Indirect Service Provider Figure A2 Contractual Arrangement and Flow of Funds: 31 SE as a Direct Service Provider Figure A3 Contractual Arrangement and Flow of Funds: 33 SE as an Intermediary Organization Figure A4 Social Enterprise Spectrum 39 TABLES Table 1 Examples of Social Enterprise Responses to COVID-19 6 Table 2 Illustrative Results-Based Indicators and 10 Verification Tools Towards Helping Minimize the Number of COVID-19 Cases Table 3 SE Interventions to Help Minimize COVID-19’s Social 11 and Economic Impact on the Poor iv  RESULTS-BASED FINANCING THROUGH SOCIAL ENTERPRISES ACKNOWLEDGMENTS This White Paper has been written by Maitreyi Bordia Das (Practice Manager), Ibrahim Ali Khan (Consultant), and Elaine Tinsley (Private Sector Specialist). It has benefited from comments from Inga Afanasieva, Daniel Coila, Jaafar Friaa, Oleh Khalayim, Jessica Lopez, Charis Lypiridis, and Mohammed Nada. The authors are grateful to Amsale Bumbaugh for her support during the production process and to Takayo Fredericks for design support. vi  RESULTS-BASED FINANCING THROUGH SOCIAL ENTERPRISES ABBREVIATIONS & ACRONYMS ANC antenatal care BPL below poverty line BRAC Bangladesh Rural and Advancement Committee CATI computer-assisted telephone Interviewing CBO community-based organization CDC Centers for Disease Control CHW community health worker CRM Complaints and Response Mechanism CSWS Community Safe Water Scheme CTR Tunisian Refugee Council FHIS Fondo Hondureño de Inversion Social GEMS Geo-Enabling Initiative for Monitoring and Supervision GPOBA Global Partnership on Output Based Aid GPPI Global Public Policy Institute GPRBA Global Partnership for Results-Based Approaches GPS Global Positioning System IBM Iterative Beneficiary Monitoring ICT information and communications technology IFC International Finance Corporation IO intermediary organization IVA independent verification agent LIC low-income country M&E monitoring and evaluation MoF Ministry of Finance MWC Manila Water Company NGO non-governmental organization OECD Organisation for Economic Co-operation and Development OPD Outpatient Department RBF results-based financing REACH Rights, Empowerment and Cohesion (Project) SE social enterprise SEIA socio-economic impact assessment SEWA Self-Employed Women’s Association SWM solid waste management SWMTC Solid Waste Management Technical Support Centre TDF Town Development Fund TPSB Tubig Para sa Barangay UNDP United National Development Programme UNHCR United Nations High Commissioner for Refugees UNSCO United Nations Special Coordinator for the Middle East Peace Process URHVP Uganda Reproductive Health Voucher Project UV ultraviolet (radiation) V-OPD Virtual Outpatient Department WASH water, sanitation and hygiene WHIN WaterHealth India WHO World Health Organization A White Paper for the Global Partnership for Results-Based Approaches, in Response to the Covid-19 Pandemic  vii Summary The COVID-19 pandemic is wreaking havoc across the world, but its worst effects are in areas and among communities that are the least likely to be able to manage them. The measures governments, businesses and communities have taken to contain the pandemic are also affecting global supply chains engaged in sourcing and channelling essential goods and services to those communities most in need. Communities in regional hotspots are particularly vulnerable, but the pandemic’s cascading impacts extend well beyond hotspots. In short, it has triggered a global humanitarian crisis, putting both lives and livelihoods at risk. Informal workers in precarious jobs are at greater risk of contracting the virus because they often cannot afford to stay at home and risk losing their jobs. Overall, poverty rates are expected to rise. A White Paper for the Global Partnership for Results-Based Approaches, in Response to the Covid-19 Pandemic  ix In the initial stages of the pandemic – especially in Additionally, since the verification of results before contexts where the state machinery either was caught disbursement of funds is a core part of GPRBA’s unawares, or lacked capacity, or both – communities and implementation modality, the paper explores tools and local enterprises stepped up to provide relief, typically mechanisms that could be used to substantiate results, through local businesses, neighborhood groups, non- while taking into account the need to reduce in-person governmental organizations (NGOs) and other community interactions in light of COVID-19. In particular, it illustrates groups such as youth clubs and faith-based groups. Social how mobile phones and aerial imagery could be employed enterprises (SEs) – socially-driven private enterprises to supervise project performance and verify results – have also been active in the relief efforts. These remotely, based on practices developed in the context of organizations and enterprises will continue to be essential insecure regional environments. as the pandemic stretches out and as recovery is likely to be a long-drawn process. Given the fact that SEs are Building on the foundation of successful GPRBA projects, socially oriented and are known for their innovation, role in the paper furthermore provides an overview of the financing job creation, and deep links to the community, they arrangements that can be utilized to collaborate with are likely to be instrumental to an inclusive recovery. This SEs. Since SEs can act both as a direct service provider said, SEs are themselves at risk during the pandemic, as and as an intermediary organization that coordinates the liquidity dries up and their workload increases. provision of services through multiple other SEs and non- governmental entities, the following two arrangements are The Global Partnership for Results-Based Approaches deemed the most appropriate: (GPRBA) is a long-standing program dedicated to serving the poorest and most marginalized areas and peoples • Financing through a single SE intervention. The benefit through results-based financing (RBF), technical assistance of this arrangement is its simplicity. It is ideally suited and knowledge dissemination. This mandate makes it for interventions that are urgently required to address incumbent on GPRBA to steer resources toward responding the current crisis. to the pandemic. GPRBA, additionally, has a history of working successfully with SEs and other non-state • Financing through multiple SE interventions. Though providers. As the Partnership prepares to draw upon its more complex, this approach enables an SE to act as significant experience and the institutional capacity of its an Intermediary Organization and mobilize the most partners to respond to the new challengess posed by the effective and efficient organizations for a project. pandemic, it also intends to build productive partnerships Finally, because RBF approaches typically create a with numerous SEs. lag between the delivery of a service and receipt of This White Paper is intended as an approach and guidance payment by the service provider, project designs need for GPRBA partners, World Bank task teams, and other to incorporate mechanisms that ensure that SEs have actors who engage in RBF. Because a major part of adequate resources to continue their development GPRBA’s mandate is to design and fund results that are activities. The paper, therefore, provides an overview of related to better service delivery, the paper focuses on two the following two mechanisms: overarching objectives that can be achieved by engaging • Pre-financing. This mechanism is especially important SEs through an RBF approach: for smaller organizations that may not have access to • Helping reduce the spread of COVID-19 cases, and adequate working capital to fund these operations. The paper offers examples of GPRBA projects that have • Helping minimize the socioeconomic impact of the included pre-financing mechanisms through a revolving pandemic, especially on poor and excluded groups. fund and an “advances facility.” These two objectives have been developed around • Retroactive financing. Though subject to legal review, interventions that are already being undertaken by SEs this could be an essential means to help SEs weather to support their clients and communities during the the COVID-19 crisis and allow them to continue serving pandemic. The paper, however, expands on the objectives their low-income clients. by defining the intermediate outcomes and result indicators that need to emerge/need to be realized if these goals are to be achieved. x  RESULTS-BASED FINANCING THROUGH SOCIAL ENTERPRISES I. Responding to COVID-19 Using Results-Based Approaches: The Role of Social Enterprises The COVID-19 pandemic is wreaking havoc across the world, but its worst effects are in areas and among communities that are the least likely to be able to manage the destruction. The measures governments, organizations, and businesses have taken to contain the pandemic are affecting global supply chains engaged in sourcing and providing essential goods and services to those communities most in need. Services such as water and sanitation have never been more essential than they are now. Communities in regional hotspots are particularly vulnerable, but the pandemic’s cascading impacts extend well beyond hotspots. In short, it has triggered a global humanitarian crisis, putting both lives and livelihoods at risk. Informal workers in precarious jobs are at greater risk of contracting the virus as they often cannot afford to stay at home and risk losing their jobs. A White Paper for the Global Partnership for Results-Based Approaches, in Response to the Covid-19 Pandemic  1 BOX 1: THE GLOBAL PARTNERSHIP FOR RESULTS-BASED APPROACHES Results-Based Financing (RBF) is an arrangement in which part of the payments are contingent upon the achievement of predefined and verified results. RBF agreements involve two central agents: the results funder and the incentivized agent. The Global Partnership for Results-Based Approaches (GPRBA) provides innovative financing solutions to achieve results. GPRBA’s results-based financing (RBF) approaches provide low-income households and communities that might otherwise go unserved, with access to basic services such as water and sanitation, energy, health and education. By bringing together public- and private-sector funders to maximize resources, and by designing effective incentives for service providers to reach underserved low-income communities, GPRBA gives people the chance of a better life. By linking payments to results achieved, and by maintaining an unwavering focus on the poor, GPRBA fosters inclusive development and helps address service delivery gaps arising from the challenge of increased urbanization in developing countries. Its approach to service delivery creates financial incentives for service providers to extend basic services specifically to low-income communities, while also providing members of these communities with incentives to access those services. Note: For more information, see www.gprba.org Overall, poverty rates are expected to rise. The World Bank GPRBA also has a history of working successfully with a estimates that range of non-state actors, especially socially-driven private enterprises, commonly referred to as social enterprises when compared with pre-crisis forecasts, COVID-19 (SEs) – see box 2 for a definition. Indeed, a recent internal could push 71 million people into extreme poverty in review of 44 projects in the GPRBA portfolio found that 14 2020 under the baseline scenario and 100 million under used some variant of SEs to provide results, mainly in the the downside scenario. As a result, the global extreme water, health, energy, education and finance sectors. The poverty rate would increase from 8.23 percent in 2019 Partnership’s deep experience therefore places it in an ideal to 8.82 percent under the baseline scenario or 9.18 position to work with SEs to mount an effective response percent under the downside scenario, representing the to COVID-19. Section 3 lays out the mechanisms through first increase in global extreme poverty since 1998, which it intends to do so. effectively wiping out progress made since 2017.1 As GPRBA prepares to draw upon the significant experience The UN recently expressed concern that and institutional capacity of its partners to respond to the challenges posed by the pandemic, it also intends to focus Before the COVID-19 outbreak, progress had been on partnering with SEs. This White Paper is meant as a uneven, and more focused attention was needed in most guidance document for GPRBA partners, World Bank task areas. The pandemic abruptly disrupted implementation teams, and other actors engaged in RBF. towards many of the SDGs and, in some cases, turned back decades of progress.2 BOX 2: SOCIAL ENTERPRISE – A DEFINITION The Global Partnership for Results-Based Approaches (GPRBA) is a long-standing program dedicated to serving the poorest and the most marginalized areas and peoples A social enterprise is any private activity conducted through results-based financing (RBF), technical assistance in the public interest and organized around an entrepreneurial strategy, but whose main purpose and knowledge dissemination. This mandate makes it is the attainment of a set of economic and incumbent on GPRBA to steer its resources and experience social goals, balanced with the need for financial toward responding to the pandemic. Box 1 describes the sustainability and profit, and which has the capacity Partnership in greater detail. While GPRBA was set up well to bring innovative solutions to the problems of social before the SDGs were announced, its philosophy resonates exclusion and unemployment. with the “Leave No One Behind” theme of the SDGs. — OECD/European Union, 20173 2  RESULTS-BASED FINANCING THROUGH SOCIAL ENTERPRISES 5. SEs tend to have strong networks. Though they are often smaller than local corporate entities, their networks can be more extensive and valuable during a crisis. Since SE operations – which combine a private sector structure with a social needs orientation – often interact with multiple stakeholders including private businesses, NGOs, donors, governments, and their customers and beneficiaries, they can move quickly to collaborate and coordinate with the stakeholders to react to a crisis. In the current pandemic, we are seeing this on the ground. Additionally, many SEs also have strong ties to international philanthropic groups and donor agencies, networks that have helped them mobilize international assistance during crises, including the current pandemic, for these communities. 6. SEs often generate jobs, especially for informal workers in low-income countries (LICs). Because informal jobs are among the most likely to be severely impacted during an economic crisis, any support offered to SEs during the current pandemic is likely to cascade down to Why Focus on Social Enterprises? informal workers. In the initial stages of the pandemic – especially in contexts 7. SEs tend to be micro and small enterprises that are also where the state machinery either was caught unawares, reeling from the impacts of COVID-19. They are facing or lacked capacity, or both – communities and local a crisis of liquidity and are struggling to stay afloat. enterprises stepped up to provide relief, typically through In supporting them, the state, the private sector and businesses, neighborhood groups, non-governmental international organizations are injecting funding. For organizations (NGOs) or other community organizations instance, the World Bank recently announced its support such as youth clubs. In particular, SEs have been active to Government of India for $750 million “to support in the relief effort, for seven main reasons central to an increased flow of finance into the hands of micro, small, inclusive recovery: and medium enterprises (MSMEs), severely impacted by the COVID-19 crisis.4” 1. SEs have long-standing experience in providing community-centered solutions and directing critical For more about SEs, see annex 5. For examples of SE resources to populations disproportionately affected response to the pandemic, see the next section as well by a crisis. as annex 1. 2. They have on-the ground presence at the community This paper is divided into three sections. This first section level, with delivery systems already in place. focuses on the rationale for engagement with SEs, while section 2 describes ways in which SEs are responding 3. They usually have the trust of the community, the state during the pandemic. Section 3 discusses how SEs can be and their investors because of their previous work. deployed using RBF mechanisms, including examples of results, collecting data and verifying results remotely and 4. Often working with limited resources and in risky the types of financing mechanisms that can be used. environments, SEs are characteristically agile and innovative. This enables them to play the role of In sum, even as the pandemic further widens already rapid responders in a crisis, especially where local substantial gaps in access to health care, sanitation, government capacity is limited, or where the crisis information and job opportunities, there are several is occurring in hard-to-reach areas such as informal emerging examples from all over the world that show settlements. how SEs are addressing these gaps and complementing governmental and multilateral initiatives to meet the needs of the poorest and most marginalized communities. A White Paper for the Global Partnership for Results-Based Approaches, in Response to the Covid-19 Pandemic  3 II. Social Enterprise Responses to COVID-19 SEs are actively responding to the pandemic. Where the state and markets have been overwhelmed by the crisis, communities and SEs have stepped in. In most cases, they have worked alongside the state and markets to provide critical relief to communities and to the neediest households. They have used their existing base and networks to provide basic needs such as water, food, face coverings, health care, and transport. Table 1 is an illustrative list of activities that SEs all over the world are engaged in to support their client communities. Some activities are financed through foundations or in coordination with the government; others are collaborations with various state and non-state entities, and still others are adaptations of current business models. Most of their COVID-19-related work builds on their existing activities and presence in the communities. A White Paper for the Global Partnership for Results-Based Approaches, in Response to the Covid-19 Pandemic  5 Given the fact that SEs are socially oriented and are known through their own expanded work, or through their partners for their innovations, role in job creation, and for their deep or the government. This said, SEs are themselves at links to the community, they can be instrumental to an risk during the pandemic, as liquidity dries up and their inclusive recovery. Many of the initiatives and innovations workload increases. Annex 1 provides an extensive list of they are putting in place during the emergency response relief measures that have been initiated and led by SEs. period are likely to be refined and institutionalized, either TABLE 1. EXAMPLES OF SOCIAL ENTERPRISE RESPONSES TO COVID-19 Domain of Social Enterprise Response intervention Awareness In Pakistan, Connect Hear, a social start-up, is using sign language-enabled videos to help deaf people across the country to access the government’s announcements about COVID-19.5 Water, Sanitation Across informal settlements in Kenya, Shining Hope for Communities (SHOFCO) has setup & Hygiene (WASH) handwashing stations and is providing soap and hand sanitizers. At the time of finalizing this paper, they had installed over 200 handwashing stations in 14 settlements and distributed over 250,000 soaps and hand sanitizers.6 Education With children out of school, the government of Jordan tasked Abwaab, an EdTech company, and Mawdoo3, an online Arabic content creator, to develop a platform that provides remote education to Jordanians. Within one week, they had come up with Darsak, an e-platform that offered daily online lectures to students across the country.7 Health MDaaS Global, after implementing strict safety measures, continued to provide affordable health care services to low-income populations in Nigeria. They are also collaborating with other organizations to expand Nigeria’s testing capabilities and establishing multiple mass-testing sites. Furthermore, they have developed a free, downloadable “playbook” that provides instructions for setting up and managing a mass-testing site.8 Humanitarian Goonj, in India, mobilized its vast network of volunteers and partner organizations to set up Assistance community kitchens to provide food and ration kits to migrant workers on the roads and in cities. At the time of finalizing this paper, it had distributed more than 1.2 million kilograms of rations during the lockdown.9 Cash Transfers The Bangladesh Rural and Advancement Committee (BRAC) has deployed its infrastructure to identify and target hard-to-reach households, a majority of whom were already active beneficiaries of its programs. Working in close coordination with the government and community-level organizations, BRAC initiated an emergency cash transfer program and at the time of finalizing this paper, had reached over 350,000 families.10 Jobs Mauqa.Online is a household services provider that employs former informal-sector workers as professional cleaners, caretakers and cooks. It pivoted its operations and is providing safe, cleaning services to help essential businesses in Islamabad fight COVID-19, ensuring job opportunities to those most impacted by the crisis.11 Post-Pandemic In India, the Self-Employed Women’s Association (SEWA) has scaled up the procurement of farm Activities produce from small and marginal farmers through its RUDI (Rural Distribution) network, so as to help both the farmers and consumers. It is also devising a strategy to enable the informal sector to incorporate remote working during future crises.12 6  RESULTS-BASED FINANCING THROUGH SOCIAL ENTERPRISES III. GPRBA Mechanisms Using Social Enterprises A. Defining the Results Since results-based financing, as the name suggests, and as mentioned earlier, is a modality that makes payments based on pre- defined results, a first step is to define the desired results. This paper focuses on two higher-order objectives from which the definition of potential results will flow: i. To help reduce the spread of the COVID-19, and ii. To help minimize the socioeconomic impact on the poor. Following from the previous section, this section categorizes various activities into potential results, develops illustrative results indicators, and gives examples of remote-verification methods. Ideally, verification should be quick and easy, particularly during a pandemic. For some interventions, this can be easily done: others may require more innovative and flexible tools, which are discussed in the next section. A White Paper for the Global Partnership for Results-Based Approaches, in Response to the Covid-19 Pandemic  9 1. Help Reduce the Spread of COVID-19 overall outcome of minimizing the number of cases of COVID-19, by contributing towards reduction and COVID-19 has wreaked countries, cities and communities, containment of the spread of the virus. These include, but in the absence of data and in the wake of the long- among others, raising awareness and community support drawn nature of the pandemic, it is difficult to estimate for adopting precautionary measures; providing hygiene how many cases would have been prevented or minimized, facilities and products; and testing, tracking and treating had something been or not been the case. However, it cases. Table 2 displays illustrative interventions and is possible to recognize good practices. The illustrative possible verification procedures. intermediate outcomes identified below can help the TABLE 2. ILLUSTRATIVE RESULTS-BASED INDICATORS AND VERIFICATION TOOLS TOWARDS HELPING MINIMIZE THE NUMBER OF COVID-19 CASES Intermediate Outcome Indicators Remote verification tool Improved hygiene • Number of new handwashing stations Drones • Number of portable toilets deployed Verify number of facilities installed (time- and GPS-stamped images) • Number of people provided with soap, sanitizers and so on Track community utilization through real-time videos of facility Mobile Phone Survey communities where facilities are installed Undertake community verification through a feedback and complaints registering system Increased Awareness • Percentage that are aware of COVID-19 Drones dangers Undertake aerial analysis of community • Percentage that are aware of precautionary behavior measures against COVID-19 Mobile Phone • Prevalence of wearing face coverings Conduct a randomized survey of the targeted community • Engagements with excluded groups (for example, disable people’s organizations) Interview key informants • Number of community health workers trained Containment • Number of testing centers established or Mobile Phones accredited Verify calls to beneficiaries • Number of COVID-19 tests conducted Verify calls to project staff • Number of medical assessments Deploy feedback and complaints conducted and patients screened registering system • Establishment and usage of tracing system 10  RESULTS-BASED FINANCING THROUGH SOCIAL ENTERPRISES While these outcomes are structured specifically with 2. Help Minimize the Socioeconomic Impact COVID-19 in mind, their benefits can extend beyond the on the Poor pandemic. Improved hygiene practices, for example, can The second higher-order objective is to help minimize reduce the prevalence of water-borne diseases such as the pandemic’s social and economic impact, especially diarrhea and cholera. Likewise, the deployment of a wide on impoverished communities and marginalized groups. range of awareness strategies during this pandemic could SEs have been proactive in mitigating the impacts of also improve future campaigns. Containment strategies the COVID-19 crisis, both in the short and the medium and improved diagnostic capabilities developed during term. In the short term, many have focused on providing the COVID-19 crisis could be used for other health needs. basic needs services such as food distribution and cash Additionally, SEs can incorporate lessons they learned in transfers. Other SEs have been engaged in preserving responding to the pandemic into improving their business livelihoods, particularly in the more vulnerable rural operations (for example, developing better monitoring areas. Still others have been providing school children and evaluation (M&E) processes, more extensive client with remote education and the sick with telemedicine outreach, and so on). remote consultations. TABLE 3. SE INTERVENTIONS TO HELP MINIMIZE COVID-19’S SOCIAL AND ECONOMIC IMPACT ON THE POOR Intermediate Outcome Potential Indicators Remote Verification Tool Protecting financial • New beneficiaries added, of which percentage Mobile Phone health of families that is female Verification calls to beneficiaries through cash transfers and other mechanisms Food distribution • Number of families or households served in area Mobile Phone • Number of food packets delivered Randomized survey of targeted area • Number of dry rations delivered Drones Verification of community kitchen set-up • Number of community kitchens set up and operations • Amount of prior agriculture produce loss that is now redirected Restoring and • Number of individuals who gain access to micro Mobile Phone promoting livelihoods grants, of which percentage that is female Verification calls to beneficiaries • Number and percentage of beneficiaries or Verification calls to project staff micro-entrepreneurs who develop a recovery plan Drones • Number of jobs provided in labor-intensive Verification of infrastructure project progress infrastructure activities Offering access to • Number of farmers supported Mobile Phone stable pricing for • Volume purchased from farmers Verification calls to beneficiaries agricultural products Ensuring continuity in • Number of unique users accessing content on Mobile Phone education a daily, bi-weekly, and weekly basis Verification calls to (parents of) beneficiaries • New geographical areas for remote learning Data from providers of educational content Feedback and complaints registering system Ensuring access to • Number of telemedicine consultations Mobile Phone health care Verification calls to beneficiaries Telemedicine provider data Expanding access to • Number of households given access to mobile Mobile Phone digital technology connectivity Verification calls to beneficiaries • Number of women given access to smartphones Mobile provider connection data A White Paper for the Global Partnership for Results-Based Approaches, in Response to the Covid-19 Pandemic  11 B. Data Collection and Remote Verification data mobility app can be audited for accuracy. Despite the high credibility most SEs already have, independent verification of their results will help enhance trust among 1. Data Collection by Social Enterprises stakeholders and create a feedback loop that enables them Since social impact is a core objective of all SE operations, to fine-tune their implementation mechanisms. many have in place robust M&E systems. Some incorporate the use of real-time mobile applications to track results and 2. Remote Verification help improve effectiveness and to leverage additional funds from various sources. While some deploy customized data Verification protocols are the procedures used to certify collection processes that can be used both online and whether a service meets agreed specifications. In most offline, some easy-to-use tools can be quickly integrated sectors, it includes on-site physical verification of claims into the operations of SEs. Here are highlighted examples made by the service provider. To do this, agents tasked by of Commcare, KoBotoolbox, and TaroWorks. the World Bank undertake a statistical sampling of each agreed output or result.17 However, with the constraints • CommCare is a software application developed currently posed by social distancing, verification should by Dimagi, an SE that allows customers to design take into account the need to reduce in-person interactions customized data collection applications. For COVID-19, while ensuring that the data are reliable and representative the Commcare platform is being used for screening of the ground reality. and triage protocols, surveillance and contact tracing, information dissemination, lab tracing and logistics.13 Each verification mechanism is unique to a project and will need to consider the implementing agency’s existing • KoBoToolbox, developed by the Harvard Humanitarian data-collection tools and pre-established indicators of Initiative, is a free, open-source digital data collection success. For reference, the Global Public Policy Institute and analysis tool for organizations with a social mission. (GPPI) has identified technologies that it considers to be The platform has a user-friendly form builder, questions particularly helpful for development practitioners working library, and integrated data-analysis software.14 Cisco, in insecure environments. The two most relevant are the a KoBoToolbox partner notes “the platform has over use of basic mobile phones and smartphones to collect 200,000 users in all 195 countries around the world, and verify data from beneficiaries, and the use of remote- with an estimated 23 million individuals benefiting from sensing technologies to gather information about physical the digital data collection tool. KoBoToolbox receives 5 assets. The information collected through these means million survey submissions every month and has been can be triangulated with financial statements, government used to collect data after every significant humanitarian records, and other reliable documents the implementing crisis since 2014.”15 The Geo-Enabling Initiative for agency may produce. Monitoring and Supervision (GEMS) at the World Bank also bases its systems and trainings on the application. For COVID-19 related projects, the following pointers may be considered: • TaroWorks is an SE launched by Grameen Foundation in 2013 to help nonprofits and businesses manage • Keep data collection exercises light. remote field operations, using their mobile field service app (online and offline capabilities) and cloud database. • Project design and implementation manuals should More than 100 SEs and NGOs have used TaroWorks incorporate the process of remote verification at inception. in more than 40 countries across Africa, Asia, Latin • The verification mechanism should consider the America and the Caribbean to direct sales networks, education level of the beneficiaries and whether manage inventory, monitor and evaluate programs, and they have appropriate access to mobile phones or collect and analyze data.16 smartphones, as needed. Annex 4 highlights some of the COVID-19 related uses of • A short pilot assessing the feasibility of the remote- these data platforms. verification tools and process should be considered. Since GPRBA also focuses on the verification of results as • Risk-based verification, which adapts the frequency of being central to its implementation modality, it can work verification to the accuracy of the data collected, should with SEs that have robust data-collection and M&E systems be considered. in place. The data can be independently verified, and the 12  RESULTS-BASED FINANCING THROUGH SOCIAL ENTERPRISES • If there are travel restrictions, the verification agent response rate may also be a challenge, though this can be should consider broadening the list of interviewees to addressed by offering incentives for participation. include community-based organizations (CBOs) and other key informants. The World Bank’s Iterative Beneficiary Monitoring (IBM) system provides a framework that GPRBA could use for the remote verification of its projects. The IBM Mobile verification facilitates timely analysis and rapid preparation of reports, Mobile phones are one of the simplest technologies and like the Independent Verification process used by to adopt for M&E. In principle, they can be used for all GPRBA, creates a feedback loop through which periodic monitoring tasks that would otherwise involve direct reports highlight implementation challenges. Data can be conversations with beneficiaries.18 They are suitable for collected using face-to-face interviews, but where feasible, confirming whether beneficiaries have received in-kind mobile phone interviews are used because they are less transfers, cash transfers, or services, and for gathering expensive and circumvent the need to travel to insecure more qualitative information and beneficiary feedback. The places. IBM was designed as an approach to complement 2014–2016 West African Ebola epidemic highlighted how field supervision, while simultaneously reducing the field mobile phones can be used to gather data and monitor presence of World Bank staff 20 Furthermore, like the inaccessible areas effectively. However, there are a few verification process for GPRBA projects, it is implemented limitations to using mobile phones to verify outputs. The by an independent entity that has no stakes in the project’s main ones are exclusionary factors surrounding the use outcomes. Figure 2 depicts the workflow of the IBM of technology: for example, in insecure areas, women tend system applied to a GPRBA project. to have less access to cell phones than men.19 Beneficiary FIGURE 1. APPLYING THE IBM PROCESS TO A GPRBA PROJECT Define Results Indicators  Develop short survey questions Designing data collection modality Identify database from which sample will be drawn Select beneficiary outreach system -  (Ideally implementing partners Voice call, SMS or IVR  database) Reach out to beneficiaries Compile and analyze data (representative sample) Collecting data over fixed intervals Verify performance and Prepare report for disburse payment project management A White Paper for the Global Partnership for Results-Based Approaches, in Response to the Covid-19 Pandemic  13 Other forms of simplified and rapid mobile verification Social accountability mechanisms include computer-assisted telephone interviews and SMS To incorporate another layer of performance verification, verification. projects should include social accountability mechanisms that enable beneficiaries to register complaints and • Computer-Assisted Telephone Interviewing (CATI). submit details on project performance. Complaints and A number of reputable organizations already use Response Mechanism (CRM) systems are an effective tool mobile-based interviews to conduct research or collect that stimulates community participation, M&E, as well as information. For instance, J-Pal transitioned to a work- learnings.24 A CRM creates an additional layer of verification from-home based CATI system in which an electronic that can supplement the activities of the verification agent. device (a computer, tablet or mobile) displays questions The most appropriate form of a CRM is to provide a phone on its screen, the interviewer reads them to a respondent number to a community through which residents can over the phone, and then enters the respondent’s connect with the concerned government department or answers directly into the electronic device.21 third-party monitoring agency to register complaints or • SMS is the least expensive way of collecting data highlight incidences of fraud or malpractice. through mobile phones. Respondents indicate their The CRM typically works through a marketing campaign answers using the phone’s keypad. Beneficiaries can consisting of radio ads, mass messages and so on respond to queries at their convenience, making it that broadcast project details and information on how potentially less disruptive. However, SMS surveys to connect with the CRM. In communities where many may not be effective in gathering information from potential beneficiaries have smartphones, individuals could individuals with limited literacy and could leave out be incentivized to provide updates on project progress groups without access to mobile phones.22 (photos, videos) and give more detailed feedback. For instance, in the Philippines, the United Nations Development Verification through aerial imagery Programme (UNDP) is developing DevLIVE, an application For verification of physical assets such as hand-washing designed to serve as a monitoring and feedback tool for stations and active testing facilities, aerial technologies the public and government personnel for timely monitoring such as drones can be employed. These are efficient and of government-funded infrastructure projects. Users of safe ways of accessing crowded areas or those that have the application can take photographs or video clips of challenges of safety and security. For instance, hand- irregularities on infrastructure projects and send a feedback washing stations have been set up in Kibera (Nairobi, report to the government, all behind a veil of anonymity.25 Kenya) and at several bus stations in Rwanda. In another example, the United Nations High Commissioner for C. Financing Mechanisms Refugees (UNHCR) in 2009 developed a Project Tracking Database, a web-based, remote project monitoring system As noted earlier, GPRBA projects have worked with SEs in Iraq, which has a daunting security environment. The in the past, although often through an intermediary such database collected pictures containing GPS information as a foundation. Annex 2 illustrates the contractual about houses being built, obtaining this information directly arrangements and financing mechanisms for illustrative from project partners. It enabled remote monitoring of GPRBA projects. Ideally, such contractual arrangements construction progress, costs, and deliveries before, after should also involve local governments, which as elected and during construction, with payments being tied to the bodies are accountable to the people. If the local photographic evidence.23 government has limited experience in working with SEs, on the other hand, then the relationship could lead to initial Similar systems could be used for COVID-19-related GPRBA delays. However, the end result is likely to be positive as operations, with drones capturing the (time- and GPS- local governments and SEs learn to leverage each other’s stamped) images instead of a person. The technology, strengths toward realizing real impact. Once a local however, remains largely untested in development settings government partners successfully with an SE, it could and may be subject to privacy concerns or regulatory open the door for other engagements and develop a new challenges in certain settings. modality for governments to deploy.26 14  RESULTS-BASED FINANCING THROUGH SOCIAL ENTERPRISES To contribute to the two high-level outcomes previously 1. Financing through a Single SE Intervention mentioned (helping minimize cases of COVID-19 and its impact on poor and excluded groups), the next steps are The actual contractual arrangements and flow of funds for the World Bank and the government to identify activities will vary based on country-specific institutional and sector and interventions. These could be either activities already arrangements. They are, however, likely to be similar to being undertaken by SEs, or new interventions. Depending other GPRBA projects, where the World Bank enters into on the sector and the intervention, the SE can act either a grant agreement with a government entity, which in turn as an enabler (particularly if it is a large umbrella SE), as contracts with a service provider/NGO to implement the an implementer, or even as a community organizer. This project. The benefit of this arrangement is its simplicity. section explores various financing mechanisms for GPRBA A specific intermediate outcome is chosen, and an SE (or and local governments seeking to partner with an SE. multiple SEs undertaking the same activity) provides the outputs, for example, handwashing stations. These are Since most organizations are unlikely to have experience verified and outcome payments are disbursed, ideally to the with an RBF modality, it is important for all three SE, to avoid payment delays. stakeholders – the World Bank, the government, and prospective implementation partners – to work together Case 2 in annex 2 offers an overview of Improved Access to identify appropriate payment mechanisms and results to Water Services in the East Zone of Metro Manila Project, framework that sets adequate incentives for SEs to scale- in which the Manila Water Company provided low-income up their operations and reach a larger number of affected families with access to piped water. The project followed a communities. As previously mentioned, interventions similar model where a single non-governmental entity acted could be grant payments for building water stations, cash as the service provider. However, instead of funds flowing transfers, hygiene awareness campaigns, or subsidizing the through the government, the Manila Water Company interest on loans to micro-entrepreneurs.27 received funds directly from GPRBA after verification. FIGURE 2. FINANCING MECHANISM FOR A SINGLE SE INTERVENTION World Bank/GPRBA Grant Agreement Government Entity Disbursal contingent on IVA report Subsidiary Agreement Submission of IVA reports Social Enterprise Beneficiary Independent Verification Agent Output Verification A White Paper for the Global Partnership for Results-Based Approaches, in Response to the Covid-19 Pandemic  15 2. Financing through Multiple SE Interventions The Uganda Reproductive Health Voucher Project-II illustrates GPRBA’s capacity to employ an SE as an IO that Countries that have numerous and mature SEs (for coordinates the provision of services by multiple entities. example, Kenya, India, South Africa), can engage with Case 3 in annex 2 provides an overview of the project and multiple SEs to deliver broader outcomes. This can its contractual arrangements. however, be a more complicated arrangement that may not be suitable during a pandemic. However, since many SEs have already organized themselves into coalitions to 3. Pre-Financing leverage preexisting umbrella SE enablers (BRAC, SEWA), Since the chain of activities from service delivery, this mechanism – compared to the single intervention verification of performance, and receipt of payment in approach – could be more effective in addressing the RBF projects, may be long-drawn and SEs may not be COVID-19 crisis. By using an intermediary organization (IO) able to cover the costs, especially during a pandemic, to coordinate several different SEs, this approach allows providing them with avenues for pre-financing their project the IO to select the most efficient or effective ones. In some activities is important. This is especially true for smaller situations, the local government can act as the IO , which organizations that may be even less likely to have the can incentivize them to resolve bottlenecks that the SEs working capital to fund such operations. Pre-financing can may face. be arranged through an “Advances Facility” that allows FIGURE 3. FINANCING MECHANISM FOR MULTIPLE SE INTERVENTIONS World Bank/GPRBA Grant Agreement Government Entity Subsidiary Agreement Intermediary Organization Submission of IVA reports Project Implementation Contracts SE SE SE Beneficiary Independent Verification Agent Output Verification 16  RESULTS-BASED FINANCING THROUGH SOCIAL ENTERPRISES organizations to draw funds from the government but with a contingency that the grant provided by the World Bank will first be used to repay the amount drawn. Other options include the creation of a revolving fund that is replenished through the grants, raising funds through impact investors, or applying for working capital from private sector sources such as commercial banks. Annex 3 gives examples of GPRBA projects that provided pre-financing mechanisms, thereby addressing the need to arrange for working capital prior to receipt of the grant in the project design. 4. Retroactive Financing Retroactive financing can be another important means to help SEs weather crises such as the current pandemic D. Working with SEs Using RBF and continue serving their low-income clients. SEs, like other business ventures, have also been impacted severely Five Recommendations by the economic repercussions of COVID-19, perhaps 1. Since SEs are already active in responding to the even more so. One reason is that the economic lockdown pandemic, RBF can assist them to scale up their work. and mobility restrictions have been particularly hard on If GPRBA funding is a possibility, SEs could also take low-income urban households—the principal client base on additional activities – the activity menu need not be of many SEs. With client incomes falling, demand for SE limited to existing actions. goods and services has also declined. This puts pressure on SE operational income and can lead to cuts in service 2. Many mature SEs already have robust M&E systems provision, sometimes reversing prior gains made towards that they use to measure and track their impact, as well poverty alleviation. as improve their feedback loop. These systems can be audited and used for data collection and verification. Covering costs that SEs may have incurred to produce results that GPRBA or another entity may honor28, is likely 3. SEs with experience in working with the government to be especially important during COVID-19 response, and should be utilized. For example, BRAC in Bangladesh, can help them continue or even expand their business Life Bank in Nigeria, and Abwaab in Jordan have already operations. Based on the selected metrics (for example, been working with the government on COVID-19 relief new handwashing stations, clinics able to do COVID-19 measures. testing, newly registered recipients for cash transfers), retroactive financing can be given to cover a specific period 4. The results and outcome indicators need to be simple of time (for instance, activities undertaken since March and easily verifiable and should build on existing data- 2020) with the condition that the results are documented collection methods. and verifiable. 5. Interventions that are likely to have a longer-term For SEs that are not active in COVID-19 relief efforts impact, should be prioritized when possible—in but play an important role in providing jobs and skills particular, those that improve country systems and development opportunities to disadvantaged groups such outcomes, allow for benefits to continue to accrue as persons with disabilities, refugees, and survivors of beyond the project funding cycle, and prepare the sexual abuse, retroactive financing can be a vital lifeline to country for the next emergency. ensure that these enterprises stay afloat after the effects of the pandemic have subsided. SEs are often among the few Many of the initiatives and innovations SEs are putting employers or trainers of the disadvantaged, and without in place during the emergency response period, should their assistance, there is a high likelihood that these groups be refined and institutionalized, either through their may become even more marginalized. own expanded work, or through their partners or the government. This will be critical to an inclusive recovery. A White Paper for the Global Partnership for Results-Based Approaches, in Response to the Covid-19 Pandemic  17 Annex 1. Social Enterprise Responses to COVID-19 This section offers a concrete picture of the diversity and creativity of social enterprises. It looks at 30 SEs and summarizes the work each is doing in responding to the pandemic. The responses are organized under seven headings: Awareness; Water, Sanitation & Hygiene (WASH); Education; Health Care; Humanitarian Relief; Cash Transfers; and Jobs. Information provided in this section has not been verified and has been sourced either from the SE websites or third party sources. A White Paper for the Global Partnership for Results-Based Approaches, in Response to the Covid-19 Pandemic  19 Awareness Information and Communications Technology (ICT) ConnectHear (Pakistan): ConnectHear is a social start-up solutions developed by social entrepreneurs are led by aspirational youth working to promote sign-language increasingly seen as key enablers to solving development accessibility and deaf inclusion in Pakistan. challenges. These solutions can often deliver expertise and information to low-income consumers who lack physical • COVID-19 RESPONSE: ConnectHear is helping deaf or financial access to critical resources.29 In the context people in Pakistan access the government’s advice of the present pandemic, the solutions have the potential regarding COVID-19 through videos featuring Pakistani of providing essential information – how to prevent sign language.31 the spread, how to identify symptoms, and so on – to marginalized communities, and combating misinformation campaigns that cause distrust between communities and Arifu (Kenya): Arifu is a Nairobi-based EdTech company towards institutions. that has developed a free-to-use, phone chat-based platform that works on any smartphone and, through its interactive educational content, can be used to learn new skills and Opendream (Thailand): Opendream, a Thai SE, draws access opportunities. on its expertise in digital technology to create tech-based social innovation in the areas of health, education and • COVID-19 RESPONSE: Arifu is creating a free-to-license people’s livelihoods. COVID-19 learning content for their partners, NGOs, and governments to offer to their audiences in Kenya. Topics • COVID-19 RESPONSE: Opendream has created an will focus on health, business, and financial skills for anonymous data-collection tool to identify COVID-19 staying safe and adapting urban and rural livelihoods to hotspots. Smartphone users can store information on cope with social distancing and lockdowns.32 their devices about their health and possible symptoms of illness. The app then forwards the data anonymously to the Thai disease control authority. When enough data is collected, an algorithm evaluates where a new COVID-19 hotspot might form.30 20  RESULTS-BASED FINANCING THROUGH SOCIAL ENTERPRISES Water, Sanitation & Hygiene (WASH) Access to safe water, sanitation, and hygienic conditions behavioral change toward widespread adoption of is essential to protecting human health from the COVID-19 good hygiene practices, and to maximize public outbreak.33 Tragically, 780 million people worldwide lack health benefits.35 To ensure transparency and the access to good-quality water sources34 and are therefore efficient use of funds, they have partnered with unable to adhere to basic infection prevention protocols PricewaterhouseCoopers to provide financial and such as washing one’s hands. To meet this challenge, accounting services. They have access to more than several social-sector organizations have stepped up to 200,000 geolocated points of sale across Kenya and provide access to mass sanitation tools. have built ‘a geospatial demand map’ to ensure the efficient and fair supply of essential products.36 Safe Hands (Kenya): A social impact-driven alliance of Kenyan technology firms, suppliers, manufacturers, Sanivation (Kenya): Sanivation is an SE and a provider of ecommerce specialists, and micro-distribution specialists WASH services that is dedicated to improving the overall that have formed a coalition with the sole intent of delivering health, dignity, and environment of urbanizing communities services and products to the neediest Kenyans in response in East Africa through delivering clean, safe, and efficient to the pandemic, based, in their words, on “three key sanitation services. principles: (1) impact, not profit; (2) speed is critical because every day counts; and (3) last-mile saturation: we leave no- • COVID-19 RESPONSE: Provided accurate and one behind.” reliable information to the communities they work in. Sanivation has also installed additional Water, • COVID-19 RESPONSE: Immediate provision of Sanitation & Hygiene (WASH) access points and is free resources for rapid mass sanitation such as encouraging safer behaviors through community hand sanitizers, soap, face coverings, and surface trainings. They are also monitoring the impact of disinfectants. Safe Hands has simultaneously WASH interventions and supporting WASH utilities in launched a consumer education campaign called their post pandemic recovery.37 #TibaNiSisi (“We are the cure” in Kiswahili) to drive A White Paper for the Global Partnership for Results-Based Approaches, in Response to the Covid-19 Pandemic  21 Education With schools closed in 191 countries, at least 1.5 billion 40K PLUS (India and Cambodia): 40K PLUS is an SE students and 63 million primary and secondary school with extensive experience in making high-quality learning teachers have been affected by the pandemic.38 To ensure accessible to children in low-resource environments. educational continuity in the short term, countries around the world have had to identify ways of keeping their • COVID-19 RESPONSE: 40K PLUS is using its technology children engaged. That challenge is vastly amplified if it platform to reach children who cannot access online is accompanied by a lack of access to a computer or the learning resources. It has been designed for low- internet. United Nations Special Coordinator for the Middle resource environments and can therefore make East Peace Process (UNSCO) estimates that about 826 educational material accessible and available offline million children have no access to a computer at home, and to all learners through low-cost android devices. 706 million have no internet at home.39 Many SEs are ideally Additionally, 40K PLUS is using podcasts to target structured, connected, and positioned to develop creative specific learning outcomes. The podcasts provide an solutions to reach these children who dwell on the other accessible learning medium for children who have side of the Digital Divide. access to smartphones at home but are restricted by low-bandwidth internet connectivity.42 Abwaab (Jordan): Abwaab is an EdTech company that provides online learning platforms for secondary school Ubongo (Kenya, Rwanda and Tanzania): Ubongo, an SE students in the Middle East and North Africa. based in Dar es Salaam, Tanzania, creates edutainment and educational children’s television series in Africa. • COVID-19 RESPONSE: The government of Jordan tasked Abwaab and Mawdoo3, an online Arabic content • COVID-19 RESPONSE: Ubongo has expanded the creator, to develop a platform that could provide remote reach of its TV and radio educational shows by offering education to Jordanians. Within the span of a week, content to broadcasters for free. Their TV shows are they had designed Darsak, an e-platform that offers now available in 17 countries and will launch soon in daily online lectures to students across the country.40 three countries. Ubongo also posts daily lessons on its Facebook and Instagram channels and had reached about 2,600,000 visitors until May 2020.43 Eneza Education (Tanzania): Eneza Education is an EdTech company that offers revision and learning material through basic phones. • COVID-19 RESPONSE: Eneza Education’s Shupavu291 is a mobile platform that provides content through basic phones that support 1G or 2G networks. During the pandemic, they are offering class specific, curriculum- aligned content for students in Kenya and Côte d’Ivoire.41 22  RESULTS-BASED FINANCING THROUGH SOCIAL ENTERPRISES Health Care A number of SEs that stepped forward in the first several leveraging partnerships with on-ground NGOs to spread months of the pandemic to deliver health care services awareness about the Virtual OPD and popularize the toll- have the potential to support overburdened hospitals and free number.45 health-care practitioners throughout the world. Their ability to quickly deploy their technology and other resources could help make health care more accessible to both AlTibbi (Jordan): AlTibbi is a digital-health platform in the COVID-19 and non-COVID-19 patients. Middle East and North Africa region • COVID-19 RESPONSE: In collaboration with the Karma Primary Healthcare (India): Karma Healthcare is Jordanian ministry of health, and sponsored by Hikma a health care start-up with a mission to provide equitable Pharmaceuticals, AlTibbi has launched a COVID-19 access to good-quality primary health care in the three Indian hotline that is accessible to all Jordanians. Users can states of Rajasthan, Haryana and Madhya Pradesh. get connected to certified doctors and obtain medical assessment from home (especially for individuals with • COVID-19 RESPONSE: The lockdown that was flu-like symptoms).46 implemented to contain COVID-19 affected access to, and delivery of, health care for pregnant women and children. Hence, Karma Primary upgraded and Hewatele (Kenya): Hewatele (“Plentiful air in Swahili”), is an adapted its services to provide contactless audio- SE focused on saving lives by addressing the shortage of video consultations and referrals, a phone helpline, and affordable, accessible medical oxygen solutions at hospitals awareness campaigns, reducing the need for in-person and other health-care facilities in East Africa. engagement.44 • COVID-19 RESPONSE: Hewatele is providing medical- grade oxygen to Nairobi’s COVID-19 isolation hospital, ARMMAN (India): ARMMAN leverages technology to create with a set of cylinders dedicated solely to that facility.47 cost-effective, highly scalable solutions to improve the health and well-being of under-served mothers and children in India. Erk Mead (Ethiopia): Erk Mead is an SE that focuses • COVID-19 RESPONSE: In response to hospitals reducing on mental health and education throughout Ethiopia their OPD capacities, ARMMAN started a pan-India free by delivering programs via radio show and other media Virtual OPD (V-OPD) with the help of volunteer doctors. platforms. Pregnant women and mothers of children can call a toll-free number to reach obstetricians and pediatricians • COVID-19 RESPONSE: Partnered with the Ministry of from Monday to Saturday (11am – 3pm for antenatal Education in Ethiopia to create programming directed queries and 3pm – 7pm for pediatric queries). Queries at children that aims to calm anxieties and address can be addressed in Hindi and English. They have rampant misinformation regarding COVID-19, through been receiving around 250 calls a day. They are also Kuncho, a cartoon character that Erk Mead developed.48 A White Paper for the Global Partnership for Results-Based Approaches, in Response to the Covid-19 Pandemic  23 mPharma (Ghana and Nigeria): mPharma is an online Zipline (Ghana and Rwanda): Zipline is an American medical prescription drug manager for providers and payers in Africa. product delivery company headquartered in South San They aim to provide drugs at low prices by aggregating and Francisco, California that designs, builds, and operates drone predicting demand across their network of providers. aircraft. The company has distribution centers in Rwanda and Ghana. • COVID-19 RESPONSE: mPharma is trying to preempt a worsening of drug supply shortages and price increases • COVID-19 RESPONSE: Zipline is using drones to deliver caused by COVID-related disruptions in the drug supply essential medicines and COVID-19-related supplies, chains the world over. It has launched “Mutti Keep My such personal protective equipment, in Ghana and Price,” a price control program that will enable patients Rwanda.53 on chronic medications to choose a 3-month or a 6-month price control plan. For the duration of the plan, the prices of their covered medications will not Kinnos: Kinnos, an infection prevention company founded change regardless of what happens in the market. In by students at Columbia University, got its start by focusing collaboration with Standard Chartered Bank, mPharma on improving hygiene for health-care workers, patients is also equipping private labs with polymerase chain and others by making it more effective for people to use reaction machines and test kits for COVID-19.49 disinfectants correctly. • COVID-19 RESPONSE: Kinnos created Highlight, a Living Goods (multiple countries): Living Goods recruits colorized disinfectant that they claim “greatly improves and trains community health workers (CHWs) to distribute visibility, coverage, and end-user compliance of essential medicines at affordable prices in Uganda, Kenya disinfectant. As a result, Highlight claims to reduce and Myanmar. human error from surface decontamination by providing real-time color-change feedback. Kinnos is now making • COVID-19 RESPONSE: Living Goods is providing Highlight, which can be added to any current liquid free health supplies through their CHWs across their disinfectant to protect frontline workers from the catchment area. They have also trained affiliated CHWs COVID-19.54 in ‘low and no-touch’ protocols, provided them with PPE kits and increased their compensation.50 Saral Designs (India): Saral Designs is a Mumbai-based start-up, providing access to high-quality, affordable feminine Sehat Kahani (Pakistan): Sehat Kahani is an all-female hygiene products using advanced product design, patented medical team providing low-cost, virtual care to low-income machine technology, and innovative distribution. communities via video conference and a mobile application. • COVID-19 RESPONSE: In response to COVID-19, Saral • COVID-19 RESPONSE: Sehat Kahani is offering Designs has not only repurposed its sanitary pad COVID-19 telemedicine services free of charge, enabling production machines to create face coverings but is patients to access care remotely.51 now building a highly automated machine capable of producing 60,000 face coverings per day for frontline workers and citizens.55 LifeBank (Nigeria): LifeBank is a medical distribution company that uses data, technology and smart logistics to supply essential medical products, such as blood and other blood- related products, as well as oxygen, to hospitals in Nigeria. • COVID-19 RESPONSE: In partnership with the Nigerian Institute of Medical Research (NIMR), LifeBank has launched two drive-through mobile testing centers, in Lagos and Oyo, to boost COVID-19 testing rates in the country. They have received funding from stakeholders in Nigeria including Sterling Bank, UTL Trust, Rising Tide, and the Daystar Center, which has enabled LifeBank to provide the tests for free.52 24  RESULTS-BASED FINANCING THROUGH SOCIAL ENTERPRISES Humanitarian Relief In large cities all over the world, millions of informal LabourNet (India): LabourNet works towards promoting jobs workers were adversely affected by nationwide lockdowns and improving real income wages within the informal sector enforced to curtail the spread of the COVID-19. Already in by improving workers’ skills and productivity. a financially precarious situation, and now left without an income source, many were either stranded in cities, while • COVID-19 RESPONSE: LabourNet repurposed others resorted to walking in some cases hundreds of miles its 100-person staff of worker trainers to serve to their home villages. To ensure they had access to the free food and sanitation products to nearly 300,000 basics of food, water and shelter, civil society organizations, migrant workers who were stranded due to the neighborhood groups, volunteer teams, and SEs launched nationwide lockdown in India and were without a mass mobilization initiatives to transfer resources to source of income.57 dislocated informal workers. Hasiru Dala (India). Hasiru Dala (the “Green Force”) focuses on the rights of waste pickers through interventions co- created with waste pickers themselves. • COVID-19 RESPONSE: Hasiru Dala identified 2500 families of especially vulnerable waste pickers in six cities and towns in Karnataka and Andhra Pradesh who needed immediate support. The SE worked towards providing them with care kits consisting of long-shelf- life food and other essential items, such as soap.56 A White Paper for the Global Partnership for Results-Based Approaches, in Response to the Covid-19 Pandemic  25 Cash Transfers Many organizations around the world acknowledge that Tugende (Uganda and Kenya): Tugende is a for-profit SE provision of goods and services, while essential in the that finances income-generating assets for entrepreneurs – emergency phase, is not an adequate response to the specifically, boda bodas (motorcycle taxis). economic distress. Several organizations have therefore turned to direct cash transfers. Besides replacing lost • COVID-19 RESPONSE: Tugende disbursed an income, direct cash transfers often also help to ensure that unconditional cash transfer to its 23,000 active clients poor households adhere rigorously to social distancing in Uganda and Kenya. Additionally, the organization guidelines rather than going outside to try to find some suspended non-payment penalties for two-months and temporary work. also provided full-time support through their more than 460 staff, which was actively working from home.59 Shikilia (Kenya): Shikilia is an organization created as a response to economic hardships caused by the COVID-19 outbreak. • COVID-19 RESPONSE: Shikilia, in partnership with Givedirectly, is providing emergency cash transfers to low-income Kenyan communities that have been the hardest hit by COVID-19. Shikilia sends cash through mobile-money to low-income Kenyans to replace lost income.58 26  RESULTS-BASED FINANCING THROUGH SOCIAL ENTERPRISES Jobs SEs have been at the forefront of creating job opportunities Green Afro-Palms (Ghana): Green Afro-Palms’ (GAP) for some of the most disadvantaged communities around primary activity is to assist farmers with technologies for the world. However, with the sharp, pandemic-generated palm oil cultivation and processing. decline in demand for their products and services, many of them have had to adapt their operations to ensure that their • COVID-19 RESPONSE: In response to Ghana’s employees or members continue to have a dependable lockdown, GAP has developed an e-commerce platform income stream. to enable 500 retailers—who sell GAP’s vegetables and palm oil in Ghanaian markets—to conduct online sales.63 FoodFlow (South Africa): FoodFlow, launched on March 20, 2020—just a week before South Africa’s lockdown began—is Global Mamas (Ghana): Global Mamas, a Ghana-based SE, an SE that emerged to respond to breakdowns in food supply employs women to make Fairtrade clothing and household chains caused by the COVID-19 outbreak. products. • COVID-19 RESPONSE: Financially managed by • COVID-19 RESPONSE: Responding to plummeting Oxfam South Africa, FoodFlow uses donor funding demand for their traditional products and increasing to purchase vegetables and other food products concern about global shortages of face coverings, directly from small-scale farmers and producers who the enterprise has shifted to producing washable and fall outside the big retail, supply-chain market.60 The reusable African-print face coverings. By pivoting their SE then distributes fresh produce or cooked meals production, they are trying to provide a steady income for through community-based organizations. Their model their female employees. These cotton face coverings will aims to sustain livelihoods, by providing revenue also help to free up more medical-grade face coverings to farmers despite the loss of restaurant, hotel and for hospitals, where they are most urgently needed.64 market clients, while also ensuring nutritious food reaches those most impacted by the pandemic.61 By June, more than 300 small-scale food producers from RangSutra (India): RangSutra works with artisan four South African provinces have become supply cooperatives in rural villages to source textiles that are then partners, and financial assistance has allowed them to turned into finished garments and sold to wholesale buyers provide nearly 9,000 bags (enough to feed a family of and retailers. four for a week) of food to needy South Africans.62 • COVID-19 RESPONSE: With reduced demand for existing products, RangSutra and its coops are instead making and distributing face coverings. Within two weeks of starting production, RangSutra had distributed 26,000 face coverings. 65 A White Paper for the Global Partnership for Results-Based Approaches, in Response to the Covid-19 Pandemic  27 Annex 2. GPRBA Project Engagements with SEs: Three Cases Annex 2 examines past GPRBA projects that have high relevance for how to construct a contractual arrangement with an SE under the following scenarios: Case 1. Using a social enterprise as an indirect service provider Case 2. Using a single enterprise as a direct service provider Case 3. Using a social enterprise as an intermediary organization A White Paper for the Global Partnership for Results-Based Approaches, in Response to the Covid-19 Pandemic  29 Case 1. Using a Social Enterprise as an Indirect Service Provider Project: Rural Community Water, Andhra Pradesh, India and project manager; and finally, WaterHealth India (P102472) (WHIN), a technology provider and operator of community village water treatment facilities. The responsibility to Implementing partners: Naandi Foundation and manage the services rested with the village panchayat WaterHealth as the appropriate agency for village-level governance. The scheme provided a one-off subsidy linked to the Project overview: The project was to develop 25 provision of clean water, with subsidy payments made community safe water schemes (CSWSs) in 25 villages for after the delivery of agreed outputs. The outputs included a total population of 75,000. Each CSWS was structured construction and installation of the CSWS, registration of at as a public-private partnership involving four key actors: least 500 households into the scheme, and three months of the community, represented by the village council or billed user fee consumption.66 panchayat; Naandi Foundation; an NGO as grant recipient FIGURE A1. CONTRACTUAL ARRANGEMENT AND FLOW OF FUNDS: SE AS AN INDIRECT SERVICE PROVIDER Global Partnership on Output-Based Aid (GPOBA) Payment (now GPRBA) per village against output Grant Request for verified by Agreement disbursement of funds independent verification MOU detailing roles agent and responsibilities Naandi Foundation WaterHealth (project manager) (operator) Provides long-term loan Tripartite Performance (recovered Agreement through tariffs) Provides pre- financing to be repaid through Village panchayat Output-based Aid Community contribution (20%) Community Safe Water Scheme KEY: Fund flow: Verifies Contractual relationship: and issues Information flow: opinion on independent verification agent outputs reached Source: GPOBA commitment paper 30  RESULTS-BASED FINANCING THROUGH SOCIAL ENTERPRISES Funds were disbursed from GPOBA (now GPRBA) to Results: The project supported the construction and Naandi Foundation based on a direct request for installation of UV water purification plants in 25 villages in withdrawal submitted by Naandi that included an outline the Guntur, Krishna and West Godavari districts. By the end of progress made, a summary invoice for each output, of the project, all water plants were fully operational and were and the total amount to be reimbursed by GPOBA. These serving a total of 16,104 households, 29 percent higher than applications were accompanied by a report from the the original target. A survey completed a few months after independent verification agent (IVA). The IVA contracted by the closure of the grant closure found that 98 percent of the Naandi would conduct an ex post review of the accuracy households reached by the project continued to use water and authenticity of the documentation provided, and also from the new plants. This was attributed to the significant undertake ex post physical spot checks. These audits were behavior change component devised by the implementing conducted every three months. agency. The project was also cost-effective because the actual unit cost of installing the UV plant turned out to be 16 percent lower than what was estimated at appraisal.67 Case 2. Using a Single Enterprise as a Direct Service Provider Project: Improved Access to Water Services in the East Manila Water Company (MWC), a publicly-listed company, Zone of Metro Manila (P106775) was the implementing agency for the project and was solely responsible for the construction of works, the retaining of Implementing Partner: Manila Water Company consultants, and the provision of services. The project was built on MWC’s proven track record in instituting a number Project Overview: GPRBA provided a US$2,850,000 grant of programs in pursuit of its stated vision to “become with the objective of increasing access to piped water the leader in the development and provision of water and supply services for poor households in Manila. To finance its wastewater services in ways that help build sustainable part of the project, GPRBA drew on contributions from IFC. communities...” MWC’s flagship program, launched in 1998, was the “Water for the Community” program, or the Tubig FIGURE A2. CONTRACTUAL ARRANGEMENT AND FLOW OF FUNDS: SE AS A DIRECT SERVICE PROVIDER MWSS Regulatory Office MWSS GPOBA (now GPRBA) Concession contract No objection Regulations to terms of Direct reference and payment appointment Manila Water Company Connections independent verification agent KEY: Contracts: Control: Customers Funds: Source: Project Appraisal Document A White Paper for the Global Partnership for Results-Based Approaches, in Response to the Covid-19 Pandemic  31 Para sa Barangay (TPSB) program. At the project’s inception, Figure A3 summarizes the contractual and institutional it had provided more than 1.5 million urban poor with a aspects of the scheme design. Although Manila Water regular supply of clean, safe, and affordable drinking water. Company appointed the independent verification agent, the terms of the appointment and actual procurement required The GPRBA grant provided a subsidy covering about GPRBA approval. GPRBA also explicitly funded the IVA 80 percent of the connection fee that households were through the grant agreement. required to pay MWC for a piped-water connection that included pipe work to the meter and the meter itself. Results: The connection subsidy reduced the cost to Without the subsidy, 30-50 percent of disposable household the household from 38-60 percent of average monthly income would be required for the connection fee. The expenditure to less than 10 percent, greatly increasing their subsidy was paid directly to MWC as a single payment, ability and incentive to connect. The recurrent costs for conditional on the independent verification of three months’ water expenditures dramatically declined for connected satisfactory service delivery, as a result of which MWC pre- households, from 13 percent of monthly spending to as financed the entire cost of the project. low as 1 percent for modest consumption. By project’s end, it had provided a connection to 28,500 households, surpassing its goal of 20,000 households.68 Case 3. Using a Social Enterprise as an Intermediary Organization Project: Uganda Reproductive Health Voucher Project -II work under the guidance of the MoH and undertake the (P144102) following tasks: • Selecting and contracting health care facilities – Implementing Partner: Marie Stopes Uganda including private for-profit, private not-for-profit, and public health care facilities Project overview: In 2015, GPRBA provided a grant of US$13.3 million to the Ministry of Health (MoH) in Uganda • Designing the voucher and ensuring its security for the implementation of the second phase of the Uganda Reproductive Health Voucher Project (URHVP) over a • Negotiating reimbursement costs with health care period of four years. The objective of the project was to facilities increase access to skilled and safe maternal health care during the pregnancy, delivery and postnatal stages among • Managing claims processing systems poor women living in rural and disadvantaged areas. It subsidized safe maternal health care by providing a voucher • Marketing the scheme and distributing vouchers to poor and vulnerable pregnant women within selected through community-based distributors districts in South Western and Eastern Uganda. The • Training health care facilities and voucher distributors voucher could be used for receiving antenatal care (ANC), postnatal care, safe delivery, and family planning services at • Conducting quality assurance and monitoring and participating health care facilities. evaluation activities The MoH contracted Marie Stopes to act as the primary Results: By the end of the project, 201 facilities (both implementation agency. Marie Stopes operates as a social public and private) were covered under the project. It business: they use business approaches to deliver social surpassed its target of supporting the number of deliveries outcomes. They had extensive sector knowledge and attended by skilled health personnel. More than 230,000 had also managed the pilot project with the World Bank, vouchers were sold, out of which nearly 180,000 were used as a result of which they had already built the necessary for deliveries, and almost 200,000 used for at least one infrastructure and systems to efficiently implement the antenatal care visit. scale-up. In discharging its duties, Marie Stopes had to 32  RESULTS-BASED FINANCING THROUGH SOCIAL ENTERPRISES FIGURE A3. CONTRACTUAL ARRANGEMENT AND FLOW OF FUNDS: SE AS AN INTERMEDIARY ORGANIZATION GPRBA Bi-annual Grant Agreement IVA reports Ministry of Health Project Implementation Agency Independent Verification Marie Stopes (Voucher Agent Management Agency) Verification Contract for voucher Contract to deliver services distribution Service Providers Community Distributors Provision of Services Voucher Verification for Sale Voucher Clients A White Paper for the Global Partnership for Results-Based Approaches, in Response to the Covid-19 Pandemic  33 Annex 3. Pre-financing GPRBA projects 1. Project: National OBA Facility for Water and Sanitation Services in Honduras Grant Recipient: Fondo Hondureño de Inversion Social in Honduras, was responsible for administering the (FHIS) OBA facility. All sub-project implementers received 10 percent of the relevant OBA total award upon signing the Total project costs: US$14,813,505 contract. Besides the 10 percent advance, FHIS arranged pre-financing for the public sub-project implementers GPRBA grant: US$4,500,000 or municipalities through a US$1 million revolving fund. Scope: Develop an OBA facility aimed at improving access The fund provided bridge loans that were repaid by the to water and sanitation services for low-income households municipalities through the OBA subsidy received from in rural and peri-urban communities, including greenfield GPRBA. The revolving fund was continuously replenished and brownfield projects. through the repayments and could be utilized by multiple municipalities over the project period. If an implementer did Outputs: Number of connections to water or sewerage not deliver the achieved output and failed to pay its bridge network. loan to FHIS, the funds were recovered through retentions of sector transfers for infrastructure projects from FHIS to Pre-financing mechanism: Fondo Hondureño de Inversion the respective municipality. Social (FHIS), as the principal government agency for financing small-scale infrastructure in the social sector 2. Project Name: Nepal OBA Solid Waste Management Project Grant Recipient: Town Development Fund (TDF) • Percentage of wards or zones with visibly clean public areas, main streets and secondary streets following a Technical Implementing Partner: Solid Waste Management random visual inspection Technical Support Centre (SWMTSC) Pre-financing Mechanism: Although the project did not GPRBA grant: US$4.3 million envisage major upfront investments, a framework to Scope: To improve access to high-quality, financially sustain- pre-finance expenditures was established. The Ministry able SWM services in selected secondary cities in Nepal. of Finance (MoF) provided conditional grant advances to participating municipalities. The mechanism, called an Outputs: Improvement in municipality performance through “Advances Facility,” was managed by TDF and provided the following indicators: funds to the municipalities for expenditures they had to incur to trigger OBA disbursements. These funds were made • Number of households within the core city area available to the municipalities under the following terms: receiving daily waste collection services on a door-to- door curbside basis 1. OBA subsidies earned by a municipality would first refund any drawings from the Advances Facility; • Number of households outside the core city area receiving weekly waste collection services on a 2. The MoF would reduce future unconditional grants to a communal container or ‘bring-to-truck’ basis (that is, municipality if the amount of OBA subsidy earned by the households carry their waste to a communal container, municipality was insufficient to refund drawings from which is then collected on a weekly basis) the advances facility. • Percentage of wards within a municipality’s area that are receiving regular SWM services, as per stated service levels A White Paper for the Global Partnership for Results-Based Approaches, in Response to the Covid-19 Pandemic  35 Annex 4. COVID-19: Using Data Collection Platforms Several important COVID-19 relief efforts have used the data collection platforms mentioned in the White Paper. A few of them are summarized here: UNDP: Working with a consortium of international NGOs in GiveDirectly: A nonprofit organization launched in 2008 the Rights, Empowerment and Cohesion (REACH) Project, by four Economics students at Harvard and MIT who the UNDP has adapted the Household and Building Damage wanted to develop a model that directs donor funds Assessment tool into a Household Socio-Economic directly and efficiently to beneficiaries, GiveDirectly, based Impact Assessment (SEIA) tool to measure the impact in East Africa, uses the TaroWorks mobile field application of the COVID-19 pandemic on families. “SEIA involves a to undertake a range of tasks including recording basic questionnaire which is adaptable to various contexts, a demographic information, capturing the GPS location of mobile digital data collection tool using KoboToolbox, data each field visit, and photographing personal documents analysis, and a visualization frame in Microsoft Power BI.”69 (such as government-issued IDs, utility bills and mortgage statements) to verify individual identity.71 They are UNHCR: Using KoBoToolbox, UNHCR and the Tunisian currently delivering cash to low-income Kenyans through Refugee Council (CTR) have launched a country-wide Shikilia and SHOFCO and are using their data-collection verification and assessment exercise to confirm the capabilities to ensure effective targeting and to prevent presence of all displaced persons of concern to UNHCR fraud. Grameen Bank subsidiary TaroWorks, the mobile on Tunisian territory, and to collect information on their data platform SE, has also made their diagnostic systems current socio-economic situation and protection status. available to any organization seeking to provide COVID-19 In working towards including them in Tunisia’s national emergency cash payments.72 assistance program, the platform also aims to obtain their consent to share their personal information with Dimagi: Dimagi is developing a collection of free templates the government. Furthermore, based on this verification, of CommCare applications in support of its response UNHCR will proceed with targeted cash assistance (initially to COVID-19. Working with the Directorate of Science for 1,300 individuals) for refugees affected by the crisis Technology and Innovation (DSTI), Dimagi is using their caused by the COVID-19 pandemic.70 CommCare platform to support the development of a contact tracing mobile application specifically for COVID-19 in Sierra Leone. The system will provide digital solutions for contact tracing to contain the spread of COVID-19 and for distribution of public health messages. DSTI believes “the solution will decentralize contact tracing, and increase efficiency in resource mobilization, information dissemination, and comprehensive data collection.”73 A White Paper for the Global Partnership for Results-Based Approaches, in Response to the Covid-19 Pandemic  37 Annex 5. Just What are Social Enterprises? Social enterprises (SEs), while not new, are a growing type of enterprise not solely driven for the pursuit of profit. SEs fill the business forms between charities and commercial enterprises, as illustrated in the below figure—as they balance social mission with financial sustainability. Although there is no universally accepted definition for SEs, most approaches agree on the following characteristics of an SE that allow them to serve the poor and marginalized communities. FIGURE A4. SOCIAL ENTERPRISE SPECTRUM 1 2 3 4 5 6 7 Charity Business Charity with Social Social Socially generating with Commercial ‘on mission’ benefit purpose responsible profits for fundraised/ enterprise trading/ enterprise business business charitable grant income contracting spend Grey area in which organisations are often loosely referred to as ‘social enterprises’ Source – Financing Civil Society: Venturesome, (2009) A White Paper for the Global Partnership for Results-Based Approaches, in Response to the Covid-19 Pandemic  39 • Public good objective. The defining characteristic of this through value chain integration, extension services, an SE that sets them apart from other profit-driven community-based development, engaging local populations enterprises is their pursuit of a social or environmental in the design and delivery of innovative solutions adapted mission. This is often the centerpiece of their business to the local context, and empowerment of local social model. entrepreneurs. In doing so, they increase social cohesion and bring economic benefits. • Financial sustainability. SEs operate on business principles, using entrepreneurial activities to generate The benefits of working with SEs, in comparison to revenue and advance their social objectives. A key factor working with traditional commercial enterprises or even that distinguishes SEs from purely subsidy-dependent local governments, stem from a combination of six organizations is their pursuit of a business model and operating traits inherent to SEs: although it may or may not generate profits over time, strives for financial sustainability. Fills a need: SEs fill an access gap to public services, or where there are services, improve their quality, affordability • Inclusive innovation. SEs purposely focus on and equity. underserved populations to strengthen their social impact. Since SEs operate in challenging, low-income Pro-poor: SEs focus on underserved or marginalized markets, they are often required to think creatively, to groups – either as customers, producers, or employees. make the best of a resource-deficient situation, and to innovate, whether in the products or services they Innovative: It is typically easier for an SE to innovate, test deliver, or the means by which they do so. out new ideas, and iterate on their models to find a solution that works. They are responsive to the needs and price • Flexible organization status. SEs can be either for-profit points of their clients. or non-profit entities. They can take the form of firms, cooperatives, NGOs, community-based organizations Sustainable: SEs are mission-driven but market-disciplined (CBOs), working alliances, associations, and so on. because they need to provide value for money – otherwise They are not limited to a specific legal structure. In there is no market. They tend to be highly cost efficient. many cases, SEs are classified as “hybrid” structures, Inclusive jobs: SEs are more invested in training and combining for-profit and non-profit characteristics. The supporting local employment, particularly of marginalized flexibility in status and lack of a specific legal structure groups such as women, youth, and persons with disability. does however lead to challenges in identifying SEs. Socially and environmentally conscious: SEs prioritize In sum, SEs often fill the gap between market and the larger picture of making an impact over focusing on government failures: doing what profit-maximizing private maximizing their economic returns. enterprises and governments fail to do. They may achieve 40  RESULTS-BASED FINANCING THROUGH SOCIAL ENTERPRISES ENDNOTES 1 World Bank. 2020. “Projected Poverty Impacts of COVID-19 11 Mauqa.Online is profiled at https://acumen.org/COVID-19- (Coronavirus).”Page 1 June 8. http://pubdocs.worldbank.org/ response. en/461601591649316722/Projected-poverty-impacts-of- COVID-19.pdf. 12 Asian Farmers Association for Sustainable Rural Development. 2020 “SEWA’s Immediate Action and Plan to Make the Informal Sector COVID-19-Resilient.”, Accessed on July 6, 2 United Nations. 2020. “The Sustainable Development Goals 2020. https://asianfarmers.org/india-sewa-immediate-action- Report” Page 3. Accessed July 12, 2020. https://unstats. and-plan-to-make-the-informal-sector-COVID-19-resilient/. un.org/sdgs/report/2020/The-Sustainable-Development- Goals-Report-2020.pdf 13 Dimagi. 2020. “Digital Solutions for COVID-19 Response.” Dimagi (blog). Accessed on June 28, 2020. https://www. 3 OECD/European Union. 2017. “Boosting Social Enterprise dimagi.com/COVID-19/. Development: Good Practice Compendium”, OECD Publishing, Paris, https://doi.org/10.1787/9789264268500-en. Accessed 14 Harvard Humanitarian Initiative. “KoBo Toolbox”. Accessed August 2,2020 on July 6, 2020 https://hhi.harvard.edu/research/ kobotoolbox#intro 4 World Bank. 2020. “World Bank and Government of India Sign $750 Million Agreement for Emergency Response Program for 15 Faucett, Stacey. 2020. “How a Digital Data Collection Tool Is Micro, Small, and Medium Enterprises.” July 6. https://www. Helping Humanitarians.” Cisco (blog). February 24. Accessed worldbank.org/en/news/press-release/2020/07/06/world- on June 28, 2020. https://blogs.cisco.com/csr/a-digital-data- bank-and-government-of-india-sign-750-million-agreement-for- collection-tool-for-humanitarian. emergency-response-program-for-micro-small-and-medium- enterprises. 16 TaroWorks. 2020. “Our Clients are the Best.” TaroWorks (webpage). Accessed on June 26, 2020. https://taroworks.org/ 5 Hailstone, Caroline. 2020 “Hackathons and Hand Soap: Seven clients/. Social Enterprise Initiatives Helping Communities through COVID-19.” The Social Enterprise Magazine - Pioneers Post. 17 Loening, Esther, and Luis Tineo. 2012. “Independent Accessed on July 6, 2020. https://www.pioneerspost.com/ Verification in Results-Based Financing.” OBApproaches news-views/20200327/hackathons-and-hand-soap-seven- (43). Washington, D.C.: World Bank, May 2012. social-enterprise-initiatives-helping-communities. Accessed on June 28, 2020. http://documents1. worldbank.org/curated/en/901351468154482595/ 6 SHOFCO. 2020 “SHOFCO’s COVID-19 Response.” Accessed on pdf/726050BRI00PUB0ApproachesNo43RBF0WB.pdf. July 6 2020. https://www.shofco.org/COVID-19/. 18 Dette, Rahel, Julia Steets, and Elias Sagmeister. 7 Paracha, Zubair Naeem. 2020 “How Abwaab and Mawdoo3 2016. “Technologies for Monitoring in Insecure Helped Jordanian Government Build Online Education Environments.” Global Public Policy Institute. Berlin: SAVE Platform Darsak.” MENAbytes, Accessed on July 6, 2020 Publishers, November 9. https://www.gppi.net/2016/11/09/ https://www.menabytes.com/abwaab-mawdoo3-darsak/. technologies-for-monitoring-in-insecure-environments. 8 M-Daas. 2020 “Tackling COVID-19 in Nigeria” Accessed on 19 Chelsky, Jeff, and Lauren Kelly. 2020. “Bowling in the Dark: July 6 2020. https://www.mdaas.io/blog/tackling-COVID-19-in- Monitoring and Evaluation during COVID-19 (Coronavirus).” nigeria. Independent Evaluation Group. 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April. http://documents1.worldbank.org/curated/ Sitrep_17%20June%202020.pdf en/377031522917012963/pdf/124975-REPL-PUBLIC-POV- Practice-Note-4-4-11.pdf A White Paper for the Global Partnership for Results-Based Approaches, in Response to the Covid-19 Pandemic  43 21 Bhajibhakare, Saurabh, Ambika Chopra, Putul Gupta, and 30 Spohr, Frederic. 2020. “How Thailand’s Civil Society Is Fighting Mustufa Patel. 2020. “Transitioning to CATI: Checklists and Digitally against COVID-19.” Friedrich Naumann Foundation for Resources.” Jameel Poverty Action Lab (J-PAL), Institute for Freedom (FNF), April 15. https://asia.fnst.org/content/how- Financial Management and Research (IFMR), March. https:// thailands-civil-society-fighting-digitally-against-COVID-19. www.povertyactionlab.org/sites/default/files/research- resources/transitioning-to-CATI-Checklists.pdf. 31 Hailstone, Caroline. 2020. “Hackathons and Hand Soap: Seven Social Enterprise Initiatives Helping Communities through 22 Hughes, Sarah. 2019. “The Challenges and Opportunities for COVID-19.” Pioneer Post, March 27. https://www.pioneerspost. 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Geneva, Switzerland: WHO, April February. https://www.humanitarianoutcomes.org/sites/ 23. https://www.who.int/publications-detail/water-sanitation- default/files/publications/stay_and_deliver.pdf. hygiene-and-waste-management-for-COVID-19. 24 United Nations High Commissioner for Refugees, Operational 34 WHO and United Nations Children’s Fund (UNICEF). 2012. Guidance for Cash-Based Interventions in Displacement Progress on Drinking Water and Sanitation: 2012 Update. Settings. 2012. Geneva, Switzerland: UNHCR. https:// Geneva, Switzerland and New York, NY: WHO-UNICEF Joint cms.emergency.unhcr.org/documents/11982/48012/ Monitoring Programme for Water Supply and Sanitation, UNHCR+Guidance+on+Cash-Based+Interventions+describes+ March. https://www.unicef.org/publications/files/ how+to+determine+the+delivery+mechanism+for+CBIs/2ddc JMPreport2012(1).pdf. 49a7-a245-4f8e-9ba9-3eabe4537249. 35 To learn more about the innovative approach Safe Hands 25 Philippines, Department of the Interior and Local Government. Kenya is taking to identifying, reaching, and serving 2019. “Leveraging Technology for Citizens and Government: Kenyans most in need, visit their website at https://www. Use DevLIVE Mobile App to Give Feedback on Local Infra safehandskenya.com. Projects” (news article). April 12. https://dilg.gov.ph/news/ DILG-Use-DevLIVE-mobile-app-to-give-feedback-on-local-infra- 36 Flood, Zoe. 2020. “How Africa’s Tech Innovators Respond to projects/NC-2019-1098. the Coronavirus Pandemic.” Al Jazeera News, April 15. https:// www.aljazeera.com/ajimpact/africa-tech-innovators-respond- 26 Additional guidance on following safeguards during the coronavirus-pandemic-200414134318055.html. COVID-19 pandemic is provided in a number of publications, especially: World Bank, COVID-19: Safeguarding Lives and Sanivation is one of key social enterprise partners of the 37 Livelihoods – A Checklist for Local Governments (Washington, international microfinance organization FINCA, and is D.C.: World Bank, 2020). collaborating with FINCA to adapt its services to meet the challenge of preventing the spread of the coronavirus. For more 27 Needless to say, all GPRBA projects are in compliance with information about them, see FINCA, “FINCA Network Update: World Bank procedures promulgated by, among others, Social Enterprise Partners,” Poverty with Microfinance and Social the Environment and Social Framework, and the relevant Enterprise (FINCA) International blog, May 29, 2020, https:// departments that handle procurement, financial management finca.org/blogs/finca-network-update-social-enterprise-partners/ and legal matters. 38 United Nations. 2020. “Startling Disparities in Digital Learning 28 Both pre-financing an retroactive financing will of course be Emerge as COVID-19 Spreads.” UN News, April 21. https:// subject t legal review,, as all World Bank projects are. news.un.org/en/story/2020/04/1062232.https://en.unesco. org/news/startling-digital-divides-distance-learning-emerge 29 Tinsley, Elaine and Natalia Agapitova, eds. 2017. Using Information Communication Technology (ICT) as an 39 UNESCO. 2020. “Startling Digital Divides in Distance Learning Enabler. Washington, D.C.: Innovation Policy Platform (IPP), Emerge.” Press release, April 21. UNESCO (United Nations April. https://www.innovationpolicyplatform.org/www. Educational, Scientific and Cultural Organisation). innovationpolicyplatform.org/system/files/3_BMI_Cross%20 https://en.unesco.org/news/startling-digital-divides-distance- Cutting_ICT%20Enabler_Apr14/index.pdf. learning-emerge. 44  RESULTS-BASED FINANCING THROUGH SOCIAL ENTERPRISES 40 Paracha, Zubair Naeem. 2020 “How Abwaab and Mawdoo3 50 “Responding to the COVID-19 Pandemic.” 2020. Living Goods Helped Jordanian Government Build Online Education (blogpost). Updated May 6. May 2020. Accessed on June 29, Platform Darsak.” MENAbytes, Accessed on July 6, 2020 2020. https://livinggoods.org/COVID-19. https://www.menabytes.com/abwaab-mawdoo3-darsak/. 51 Sehat Kahani is profiled at https://acumen.org/COVID-19- 41 Kimunyu, A. 2020. “A Digital Approach to Reducing Educational response. Inequality in Africa – During and After COVID-19”. Accessed on July 6, 2020 https://nextbillion.net/digital-approach-education- 52 Salaudeen, Aisha. 2020. “Lifebank Is Providing Coronavirus equality-after-COVID/ Drive-through Mobile Test Centers in Nigeria.” CNN.com, April 28. Accessed on June 29, 2020. https://edition.cnn. 42 “40K’s COVID-19 Response.” 40K PLUS. Accessed on June 29, com/2020/04/28/africa/lifebank-nigeria-coronavirus-testing/ 2020. https://www.40kplus.com/COVID-19-response. index.html?utm_source=fbCNNi&utm_campaign=africa&utm_ medium=social&fbclid=IwAR3PeTHH4-fxHyikaNlQ0fUG7IiyhK 43 “Ubongo’s COVID-19 Response: What We’ve Done So Far...” 6d5RuaPMeWG2zXZVZxB3VZYttaX8M. Ubongo blog, May 28, 2020. Accessed on June 29, 2020. https://www.ubongo.org/ubongos-COVID-19-response-what- 53 Staples, Mara Hansen, Kariane St-Denis, Ann Allen, and weve-done-so-far. Prashant Yadav. 2020. “How Social Enterprises Are Playing a Role in COVID-19 Response.” Global Views blog (opinion piece), 44 Grand Challenges Canada. 2020. “Global Health Innovators May 6. Devex. Accessed on June 29, 2020. https://www.devex. Mobilize to Help Developing Countries Combat COVID-19.” com/news/opinion-how-social-enterprises-are-playing-a-role- EurekAlert! news release, April 27 (American Association for in-COVID-19-response-97146. the Advancement of Science (AAAS)). https://www.eurekalert. org/pub_releases/2020-04/tca-imt042120.php. 54 To learn more about Highlight and the innovative ways Kinnos is attempting to transform patient safety and hospital 45 ARMMAN. 2020. “ARMMAN’s Response to COVID-19.” efficiency, visit the Kinnos website at https://www.kinnos.us/ ARMMAN (Advancing Reduction in Mortality and Morbidity about-highlight. of Mothers, Children and Neonates) blog, April 17. Accessed on June 29, 2020. https://armmanblog.wordpress. 55 Saral Designs is profiled at https://acumen.org/COVID-19- com/2020/04/17/armmans-response-to-COVID-19. response. 46 To learn more about AlTibbi, visit the website of Global 56 Hasiru Dala. 2020. “Support for Vulnerable Wastepickers in a Innovation Exchange (GIE), a global development technology Time of Crisis.” Wastepickers and COVID-19 blog, March 23. platform that coordinates the work of social enterprises Accessed June 29, 2020. https://www.hasirudala.in/news/ such as AlTibbi: https://www.globalinnovationexchange.org/ wastepickers-and-COVID19. innovation/altibbi. 57 LabourNet is profiled at https://acumen.org/COVID-19- 47 Grand Challenges Canada. 2020. “Global Health Innovators response. Mobilize to Help Developing Countries Combat COVID-19.” Global Health News Wire, April 28. Accessed on June 29, 2020. 58 To learn more about Shikilia, visit their website at https:// https://globalhealthnewswire.com/public-health/2020/04/28/ shikilia.com. global-health-innovators-mobilize-to-help-developing- countries-combat-COVID-19. 59 Tugende, a Shell Foundation partner, is profiled in “Tugende Continues to Support Entrepreneurial Community through 48 Social Enterprise World Forum (SEWF). 2020. “Global Social COVID-19,” Shell Foundation blog, April 28, 2020, accessed Enterprise Responses To Coronavirus.” SEWF news release. on June 29, 2020, https://shellfoundation.org/news/tugende- Accessed on June 29, 2020. https://sewfonline.com/ continues-to-support-entrepreneurial-community-through- home/building-capacity-and-capability/global-response-to- COVID-19/. coronavirus. 60 To find out more about FoodFlow, see “Keeping the Food 49 “StanChart, MPharma Partner to Support Widespread Testing Flowing from Farmer to Community,” FoodFlow, accessed on of COVID-19 in Ghana.” MyJoyOnline.com, May 29, 2020. June 29, 2020, https://www.foodflowza.com/our-approach. Accessed on June 29, 2020. https://www.myjoyonline.com/ business/banking/stanchart-mpharma-partner-to-support- widespread-testing-of-COVID-19-in-ghana/. A White Paper for the Global Partnership for Results-Based Approaches, in Response to the Covid-19 Pandemic  45 61 The alignments and forces that ultimately resulted in the 68 World Bank, “Improved Access to Water Services in the East launching of FoodFlow are profiled in “Iming Lin ‘03 Co- Zone of Metro Manila Project: Implementation Completion Created Food Flow to Connect Local South African Farmers and Results Report” (Washington, D.C.: World Bank, November with People in Need,” Princeton University alumni Tigers 22, 2013), http://documents.worldbank.org/curated/ Helping blog, May 26, 2020, accessed on June 29, 2020, en/142571468294667430/Philippines-Improved-Access-to- https://tigershelping.princeton.edu/iming-lin-COVID19-food- Water-Services-in-the-East-Zone-of-Metro-Manila-Project. flow-south-africa. 69 Chief Digital Office, UNDP, “Mounting a Digital Defence in the 62 FoodFlow, “Keeping the Food Flowing. Fight against Coronavirus” (New York, NY: UNDP, April 7, 2020), accessed on June 29, 2020, https://www.undp.org/content/ 63 Green Afro-Palms is profiled at https://acumen.org/COVID-19- undp/en/home/stories/mounting-a-digital-defence-in-the- response. fight-against-coronavirus.html. 64 Knott, Stacey. 2020. “Global Effort Under Way to Create 70 UN High Commissioner for Refugees (UNHCR), “UNHCR African-Print Face Masks for Ghana.” Voice of America News, Tunisia Operational Update – April 30, 2020,” ReliefWeb (United March 27. Accessed on June 29, 2020. https://www.voanews. Nations Office for the Coordination of Humanitarian Affairs), com/science-health/coronavirus-outbreak/global-effort-under- accessed on June 29, 2020, https://reliefweb.int/report/ way-create-african-print-face-masks-ghana. tunisia/unhcr-tunisia-operational-update-30-april-2020. 65 Tyabji, Laila. 2020. “Stand up for Craftspeople: How to Support 71 For an illuminating profile of GiveDirectly, how it began, and India’s Artisan Community during the COVID-19 Crisis.” how it approaches poverty alleviation, visit the TaroWorks The Hindu, April 25. Accessed on June 29, 2020. https:// website at https://taroworks.org/givedirectly. www.thehindu.com/life-and-style/fashion/how-to-help- indias-craftspeople-and-artisans-during-the-COVID-crisis/ 72 Steve Hollingworth, “Grameen Foundation Launches article31424037.ece. COVID-19 Emergency Cash Fund” (Washington, D.C.: Grameen Foundation, April 8, 2020), accessed on June 29, 2020. https:// 66 World Bank, “Andhra Pradesh Rural Water Scheme Project: grameenfoundation.org/stories/blog/grameen-foundation- Implementation Completion and Results Report” (Washington, creates-COVID-19-emergency-cash. D.C.: World Bank, September 19, 2011), accessed on June 29, 2020, http://documents.worldbank.org/curated/ 73 DSTI Media, “DSTI and Dimagi Partner to Create Cutting en/729721468044083800/India-Andhra-Pradesh-Rural-Water- Edge Tech Solutions for COVID 19 Response.” Directorate of Scheme-Project. Science, Technology & Innovation (DSTI) blog, March 23, 2020, accessed on June 29, 2020, https://www.dsti.gov.sl/dsti-and- 67 World Bank, “Andhra Pradesh Report.” dimagi-partner-to-create-cutting-edge-tech-solutions-for- COVID-19-response. 46  RESULTS-BASED FINANCING THROUGH SOCIAL ENTERPRISES www.gprba.org www.worldbank.org