The International committee Red Cross (ICRC) and Belgium establish the first Humanitarian Impact Bond (HIB). This initiative, accounting for 28 million euros, was announced at Davos by the President of the ICRC Peter Maurer and the Deputy Prime Minister and Minister of Development Alexander De Croo.
The HIB sets concrete goals and hopes to attract private investors and raise the necessary funds to provide physical rehabilitation services to thousands of disabled people in countries that suffer from conflicts and violence.
The ICRC is active in very risky areas with very few social services for the local population, such as Afghanistan, Iraq and South Sudan. The rehabilitation centers have a direct positive impact on their quality of life and economic prospects. For 35 years the ICRC books clear and tangible results, thanks to the rehabilitation programs.
The humanitarian crises can break out suddenly and unexpected but their consequences will have an influence for several years. Therefore Belgium and the ICRC seek sustainable funding methods.
At the end of the program, a group of lenders, led by Belgium, will examine the results and compensate the original investors depending on the objectives that are achieved by the ICRC.
