Behind the Scenes of Impact Investment Policy-Making

The document examines how governments can effectively structure and design policy to mainstream impact investing. It identifies three primary drivers for government interest: global action agendas like the SDGs, the pursuit of more efficient public services through models like social impact bonds, and the desire to foster market-led innovation. The paper provides a roadmap for policy-makers based on three 'learnings': establishing clear policy ownership to coordinate cross-government activity, using engagement devices (such as collaborative platforms and charters) to build trust with the private sector, and employing strategic narratives that focus on measurable outcomes to secure internal government buy-in. Case studies from various countries illustrate different ownership models and engagement strategies.

• Governments are driven to engage with impact investing by three main factors: international action agendas and global momentum (such as the UN SDGs), the need for more efficient public services and social interventions (specifically via social impact bonds and pay-for-success models), and the goal of fostering innovation for sustainable, market-led solutions to social and environmental issues.
• Because impact investing cuts across multiple government departments and policy areas, establishing a dedicated model of policy ownership is essential to prevent activity from occurring in isolated pockets and to provide a central point of coordination.
• The document identifies four distinct models of policy ownership used by governments: joint ministerial mandates (e.g., Canada), assigned policy teams (e.g., Brazil, UK, France), departmental taskforces (e.g., Netherlands), and specialist advisers (e.g., Argentina).
• Governments can use 'engagement devices' as strategic policy tools to build trust, transparency, and market action. These include collaborative platforms, charters, high-profile summits, independent advisory groups, and co-creation steering groups.
• Strategic narratives are necessary to engage wider government and the private sector. Effective strategies include 'leading with outcomes' to demonstrate better results than traditional policy approaches and developing targeted proposals that show how impact investing helps specific departments meet their goals.
• Social impact bonds (SIBs) often serve as an effective 'entry point' for governments to engage with impact investing because they offer a tangible, outcomes-based framework with clear economic incentives for taxpayers' money.

APA

World Economic Forum (2018). Behind the Scenes of Impact Investment Policy-Making. http://www3.weforum.org/docs/Behind_the_Scenes_of_Impact_Investment_Policy-making_report_2018.pdf

Chicago

World Economic Forum. Behind the Scenes of Impact Investment Policy-Making. 2018. http://www3.weforum.org/docs/Behind_the_Scenes_of_Impact_Investment_Policy-making_report_2018.pdf.

Wikipedia

{{cite report |author=World Economic Forum |title=Behind the Scenes of Impact Investment Policy-Making |date=August 2018 |url=http://www3.weforum.org/docs/Behind_the_Scenes_of_Impact_Investment_Policy-making_report_2018.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldeconomicforum2018behind, author = {{World Economic Forum}}, title = {{Behind the Scenes of Impact Investment Policy-Making}}, institution = {World Economic Forum}, year = {2018}, month = aug, url = {http://www3.weforum.org/docs/Behind_the_Scenes_of_Impact_Investment_Policy-making_report_2018.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }