What we do
A new partnership model, centered around outcomes
The EOF model is a new way to bring together donors, investors, education organizations, and government to work towards a common set of outcomes
EOF model overview
Come together to deepen their impact by paying for long-term, sustainable outcomes, after they are achieved –transferring delivery risk to the private sector, and improving overall program performance and value for money.
Provide upfront working capital investments where required, and support the education organizations to build capacity and deliver better results. They achieve a measurable impact, as well as an uncorrelated financial return.
Work with a new rigor to deliver to outcomes (rather than inputs) – with the flexibility and support to innovate and adapt based on what is working on the ground, in collaboration with other providers.
Will be a key partner in every project, ensuring funding and programs are aligned with their policy priorities. They will co-fund outcomes, support the enabling environment, and with our support build capacity to commission for outcomes.
What we want to achieve using this model
Working towards Sustainable Development Goal 4
EOF’s objectives are aligned to and directly in support of SDG4, with an emphasis on early childhood development, improving the quality of free basic education, developing skills for work, and supporting those that are left behind.
EOF’s development objectives
Paying for what matters
and only when it works
We will use results-based finance to intelligently commission for outcomes in a way that rewards the things that matter in a child’s education – and avoids the potential pitfalls
Key elements of how we will pay for outcomes
We will use ‘cohort pricing’ to pay more for outcomes from more marginalized populations, in order to recognize that it costs more to get them learning and we need stronger incentives to ensure we leave no child behind.
Reward learning gains
We will typically use a ‘distance travelled’ approach to ensure that all learning gains are rewarded – lifting those at the bottom and the top of the class. We also plan to use ‘Learning Adjusted Years of Schooling’ (LAYS), developed by the World Bank to differentiate schooling from learning and allow standardized cross-country comparisons.
Measure what matters
We will aim to capture the breadth of education, going beyond core academic skills like literacy and numeracy to also incentivize improvements in social-emotional skills, ICT skills, citizenship skills, and other competencies needed for the jobs and citizens of the 21st Century.
Mitigate the risk
We will only pay for outcomes that are achieved, with the private sector typically taking the risk that programs don’t deliver results. We will also mitigate the risk for children and youth with diligent provider screening and selection, and ensuring rigorous and consistent safeguarding practices.
Improve value for money
We will systematically shift funds towards those programs that deliver the best results and the best value for money, driving down transaction costs on all our contracts.
Operational structure and process for EOF in each country
1. Set learning objectives and commit outcomes funding
Governments lead objective setting, in partnership with EOF & local stakeholders, and commit a portion of funds. Donors with aligned priorities make additional pledges to be paid upon achievement of these objectives.
2. Define payment metrics and commission providers
EOF and government set metrics in line with these objectives and establish a price for each targeted outcome. Typically, education organizations bid for contracts and are selected based on a range of factors including price.
3. Invest and support
Impact investors will typically support education organizations with upfront working capital at risk and work with them to deliver results through an ‘impact bond’.
4. Deliver services and achieve outcomes
Education organizations scale their programs to achieve learning and/or employment outcomes for beneficiaries, with the flexibility to adapt and innovate.
5. Evaluate results
Independent evaluators measure learning and/or employment results achieved against pre-agreed metrics (or validate administrative data).
6. Pay for the outcomes achieved
EOF pays education organizations and impact investors their principal plus a modest return, based on the outcomes achieved.
7. Build government and system capacity
Actively build government capacity to commission outcomes as well as delivery organization capacity to deliver to outcomes, and share best practices and policy lessons.