Investments

LGT Venture Philanthropy Foundation partners with Instiglio to drive effectiveness in global development spending August 2024

LGT Venture Philanthropy Foundation (LGT VP) is pleased to announce its new partnership with Instiglio, a global leader in driving government reforms to maximize the impact of public and development spending. This collaboration aims to address pressing challenges of ineffective government spending and aid allocation, ensuring every dollar delivers the greatest possible impact for those in need.

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Governments spend over $5 trillion on critical social programs and public services like education or health in low-and-middle income countries 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 gap. 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 institutions into highly effective entities, aiming to radically improve 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. First, Instiglio will form government partnerships, working to design and implement innovative reforms that enhance the cost-effectiveness of services and demonstrate significant impact potential. Second, through its Empowerment Hub, Instiglio will generate cutting-edge evidence and advocate for effectiveness in policy circles, empowering government leaders with the resources needed to drive sustainable change from within. Finally, Instiglio will scale its efforts by integrating impact management science into major aid institutions and funders, reshaping global standards for measuring effective development spending.

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 with our strategic objectives, as it paves the way for critical public and development financing to flow towards solutions that deliver impact. By showcasing how intermediaries 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 official development assistance institutions in the U.S. and Europe, expanding Instiglio’s global presence and influence.

Instiglio

“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 closely with country governments and development assistance 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,” shares Avnish Gungadurdoss, Managing Partner and Co-Founder of Instiglio. “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.” .

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 VP) is an independent charitable foundation established in 2007 with teams 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.

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