Impact is measured in its outputs of measurement, which I believe is reported back on platforms like Philanthropedia, GiveWell and others.
However, challenges persist in measuring impact for traditional investments, such as time period for returns. I think it also stems from changing the narrative of how to make investments accountable for impact than for a simple value sacrificing compensation.
There’s more and more talk of blended capital – a host of investors out there awaiting the emergence of profitable enterprises that will improve the lives of the poor in fundamental ways. We’ve been waiting for a while. In the real world of the poor, real change still means stepping up with money that you don’t expect to get back while demanding maximum returns in the form of impact.
There are serious challenges for improving efficiency in measuring impact – the existing power dynamic between donors and grantees prevents a feedback loop for foundations to know what is working and what is not. Investors, philanthropists, and for everyone else, people are more likely to achieve results that they intentionally seek.
The interest of the public sector is that foreign policy often equates to economic policy. An economic prowess of promoting growth and development is a drive wedge for sustainable growth, stability, peace, and prosperity.
Governments’ traditional roles have been to strengthen the reach by opening foreign markets, improving governance, transparency, as well as conditions for private sector-led growth. Governments and some foundations now provide funding to improve the social, political, and regulatory environments in which social enterprises and their investors operate—essentially a market building activity.
Today’s political environment is often described as “smart power,” using means of trade, diplomacy, aid, and others for a value-driven policy where individuals, businesses, and institutions act through global networks.
For any government to secure national interest upon economic industrial links and trades, it needs to deliver solutions to sustainability and scalability in impact investing as well as advancing conditions for private sector-led growth.
National interests are no longer simply delivered through applications of intelligence and tact to moderate relations between governments; it rather embraces solutions to cross-cutting socioeconomic challenges.
The ability to understand the evolving environment and capitalize on trends is a crucial skill of today enabling leaders to convert power resources into successful strategies.
I hope by continuing to work on a platform – we begin to understand that for more difficult problems, more nuanced and ambiguous solutions are. More ambiguous the solutions, the more diversity of voices there needs to be. Through convening of intelligence, I hope to continue the work where we cultivate conditions wherein collective wisdom emerges over time.