You’re likely familiar with Jim Kim – the current president of the World Bank. And even though he is one of the few without a financial background, Kim wants to use, according to a recent Devex post, “a little financial engineering” to get more bang for the buck.
For something of an “outsider”, his message spoke finance with eloquence. He wants to de-risk investments while maintaining the levels of return, socially and financially. He wants to expand low-interest rates financing for interventions in high risk countries. He wants to streamline replenishment capital raising rounds for organizations supporting groundbreaking ideas to fight Malaria, AIDS, TB and childhood stunting.
But perhaps the most important financial strategy to play is leveraging. Specifically, Kim offers the Global Financing Facility as a pool of funds from like-minded organizations. Having “four times” the amount of capital will increase the impact of an intervention more than proportionally, and will allow building “systems that last” and decrease the risks associated with health care servicing in the long term.