September 2024
LGT Venture Philanthropy Foundation (LGT VP) has announced its new partnership with Instiglio, a global leader in driving effectiveness reforms to maximize the impact of public and development spending. This collaboration aims to address the pressing challenges of ineffective government spending and aid allocation, ensuring every dollar delivers the greatest possible impact for those in need.
Governments spend over $5 trillion on critical social programs and public services like education or health in low-and-middle income countries (LMICs) annually. But despite these investments, development outcomes are systematically falling short of expectations and the urgent needs of global communities. A World Bank review of 31 countries revealed that 48% of evaluated education programs showed no positive impact on learning outcomes, underscoring a massive effectiveness . Instiglio addresses these challenges by embedding robust performance management practices and incentive structures within government and aid institutions. By shifting the focus from inputs and activities to measurable outcomes, Instiglio aims to transform how public services are delivered, ensuring they are effective and impactful.
Transformative Impact over the next five years
Instiglio’s mission is to transform development and public actors into effective institutions that radically enhance social and environmental outcomes for over 160 million people worldwide within the next five years. This ambitious goal will be achieved through three strategic pillars:
– Government Partnerships: Instiglio will design and implement innovative government transformation reforms, improving the cost-effectiveness of services and demonstrating high-impact potential.
– Empowerment Hub: By generating cutting-edge evidence and advocating for effectiveness in policy circles, Instiglio will empower government champions with the resources to drive sustainable change from within.
– Scale Partnerships: Instiglio will integrate its impact management science within major aid institutions and funders, reshaping global effectiveness standards.
Alignment with LGT VP’s strategy
As part of its “Thriving Communities” 2024-2028 strategy, LGT VP supports organizations that address systemic barriers to scaling solutions in education, health and the environment. The partnership with Instiglio aligns perfectly with LGT VP’s strategy, as it paves the way for critical public and development financing to flow towards solutions that deliver impact. By showcasing how an intermediary can address systemic barriers, this collaboration aims to scale impactful solutions across various sectors.
Enhancing Global Development Finance
Instiglio’s work in embedding performance management practices within governments and donor organizations represents a significant step towards more effective and impactful development spending. This partnership will strengthen Instiglio’s thought leadership capabilities, develop a rigorous impact management framework, and deepen relationships with aid institutions in the US and Europe, expanding Instiglio’s global presence and influence.
“Instiglio is a key addition to LGT VP’s portfolio” says Marcia Parada, Investment Director at LGT VP. “Instiglio brings a solid track record of working intimately with country governments and aid institutions in designing and implementing impact management approaches that deliver better results. Ensuring these institutions champion an outcomes mindset is critical for driving sustainable and quality services to citizens.”
“As Instiglio embarks on its 5-year strategy to engineer a global government transformation movement aimed at improving 160 million lives, we are grateful for our partnership with LGT Venture Philanthropy. This collaboration will enhance our scaling capabilities, including our internal knowledge systems, our leadership team and our ability to influence public sector decision-makers. Together, we look forward to elevating the impact of governments and forging new scale pathways for evidence-based solutions.” shares Avnish Gungadurdoss, Managing Partner & Co-Founder of Instiglio.
Instiglio
Instiglio, is a Global South non-profit that seeks to transform the impact of public funding by introducing impact incentives at the heart of public finance and procurement, and spread long-lasting and motivating performance cultures across nationwide delivery systems. In 12 years, Instiglio has empowered 500+ government leaders in transforming 25 government entities and influencing more than $750 million in development spending, impacting 55 million vulnerable lives through improved services. Instiglio’s mission is scaling these standards through a large global network of purpose-driven government champions, and partnerships with standard-setting organizations and major development financing institutions, to drive a global government transformation movement that has the potential to reach over 160 million lives in the next five years. For more information, please visit www.instiglio.org.
LGT Venture Philanthropy
LGT Venture Philanthropy (LGT VP) is an independent charitable foundation established in 2007 with partners in Switzerland, Sub-Saharan Africa, and India. The Foundation strives to improve the quality of life of people facing disadvantages, contribute to healthy ecosystems, and build resilient, inclusive, and prosperous communities. LGT VP focuses on strengthening the capabilities of locally rooted organizations that deliver effective, scalable solutions across health, education, and the environment contributing directly to the SDGs. For more information, please visit www.lgtvp.com.
