78 REAL-LEADERS.COM / WINTER 2022 Social Impact LEADING LEADERS Rethinking Humanitarian Funding: How the World’s First Humanitarian Impact Bond Delivered Physical Rehabilitation to Conflict Communities The International Committee of the Red Cross (ICRC) created the world's first humanitarian impact bond in 2017 to help transform how vital services for people with disabilities are financed in conflicthit countries. Now, at the end of its fiveyear initial run, this innovative approach has delivered on its promise. Over 3,000 people with disabilities have benefited from physical rehabilitation services in the Democratic Republic of Congo (DRC), Mali, and Nigeria, thanks to the first humanitarian impact bond, which has proven to be an efficient tool to raise project-driven funding at a time of growing global needs. The initial capital raised — $27 million — was used to build and run three new physical rehabilitation centers in Africa (Nigeria, Mali, and the Democratic Republic of Congo) and provided services to thousands of people. The paymentby-results program also included training for new staff and the testing and implementation of new efficiencies. The innovative funding mechanism was created to encourage private sector social investment and support the ICRC's health programs. The rising number of global conflicts and a growing ICRC annual budget were the driving forces for this innovative funding model. When confronted with their funding problem, ICRC could have looked at what Leadership in gender equality; reduced inequalities; peace, justice,and strong institutions others had done before or chosen to create something new. The decision to innovate has created a funding model that could offer solutions to social impact funding everywhere. "Today's humanitarian challenges are immense, causing suffering for many millions of men, women, and children around the world,” says Peter Maurer, ICRC president. “This funding instrument is a radical, innovative but at the same time, logical step for us. It’s an opportunity not only to modernize the existing model for humanitarian action “This funding instrument is an opportunity not only to modernize the existing model for humanitarian action but to test a new economic model, designed to better support people in need.” — PETER MAURER 75 MONEY 76 CLIMATE ACTION 78 SOCIAL IMPACT 74 INNOVATION & TECHNOLOGY 80 INVESTING
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