Purpose-driven funds

Development outcomes are often affected by both accessibility to physical technology and the institutional structures through which aid is delivered. For the last two decades, vertical funds - development financing vehicles with a targeted programmatic focus and mixed funding sources - have been used in a number of sectors with mixed results. Informed by successful efforts in the health sector, we argue that institutions are most likely to be successful when focused on advancing the availability of relevant frontier technologies to help drive key outcomes directly. By articulating key design principles, we posit that such institutions can be structured to ensure transparent system learning. In particular, we argue that a new fund to end extreme poverty is now feasible technologically (thanks to new digital cash transfer options) and financially (thanks to the global reduction in poverty to date), informed by a growing body of evidence (thanks to new research approaches).