Best Ideas 2020 features all the nominated entries submitted under ‘Submit your Idea’ category. All the entries consist of innovative solutions or propositions for an enterprise that champions the Sustainable Development Goals. They can be on the conceptual, planning, or start-up stage.
Two Goals One CUP
Explain your idea in details:
The main objective is to build a development environment designed to structure Transit Oriented Development (TOD) projects financed through Social Impact Bonds (SIBs). The aim of CUP's core functionality is to provide engines for TOD opportunity identification, strategy outline, performance evaluation, risk assessment, SIB instrumentation and financing, and institutional management and coordination. The main innovation behind this approach is that it can be leveraged by every stakeholder involved in the process. Policy makers can use CUP to collaborate with service providers to identify opportunities and attract investors to fund defined projects. Banks can use the CUP framework to develop much needed risk assessment methodologies for projects financed through Social Impact Bonds. NGO's and academia can also make use of this engine for research purposes and increased oversight and accountability. While it is unlikely that the exact model of implementation that worked in one context will work in another, CUP will strive to provide the general policy ideas, tools, relationships, and processes that characterise a successful implementation in different international contexts.
Expected impact of your idea on sustainable development
The ultimate measure of success of this idea is to successfully implement a Transit Oriented Development project financed through a Social Impact Bond. To achieve this the CUP framework will have to work with government institutions around the world to identify the perfect TOD candidate for implementation. At the same time, CUP will have to engineer a SIB that is irresistible for large investors. The key to the later is creating a novel way to assess risk, since development banks and financial institutions don't quite understand how to measure the risk involved with a SIB. The success of a TOD project is very easy to measure. Some of the indicators used to measure the success of a TOD policy include employment rate, transit ridership, reduced traffic congestion, car accidents and injuries, property value stability, foot traffic and customers for local businesses, and ability to maintain economic competitiveness. SIBs have traditionally focused on small-scale projects, increasing the size of a SIB offering beyond the typical $10-20 million can be considered a success milestone toward higher investment in sustainable development.
Plans for implementation and sustainability
The CUP framework is expected to be made available for free, allowing for commercial use based on a royalty model. Additionally, the development team will support this business model with consultancy services. Since this project is at the idea stage its main financing source will be seed/angel investment. The core CUP team of this project will include software and financial engineers, risk and policy analysts. CUP will then collaborate with federal, state, and local government agencies as well as NGO's and service providers to identify potential TOD projects. At the same time, CUP's finance team develop a Social Impact Bond framework that fits the TOD funding requirements. Last but not least, CUP's development team will combine the work done by the TOD and SIB teams into a framework that will be made available for free under a royalty-based license for commercial use.
I am an economist by training and humanist by passion. I am an independent analyst who invests and trades cryptocurrencies for a living. In 2013 I found out about the Transport Oriented Development standard, a powerful tool to help shape and assess urban development. One year earlier I won the Gifted Citizen Award by Ciudad de las Ideas Mexico for a project that outlined a collaboration framework between civil society, academia, and policy makers. Finally in 2014 I learned about Social Impact Bonds, an innovative pay-for-success financing scheme that leverages private capital to deliver positive social outcomes. Since the it has been my dream to combine the insights of the Transport Oriented Development standard with the financial power of Social Impact Bonds to help build better cities.