Viability Gap Funding: The Emerging Model for Social Sectors Sustainability

Posted: 8 May 2010

See all articles by Anirban Dutta

Anirban Dutta

Alliance University - School of Business; Genpact India Pvt. Ltd.

Date Written: April 12, 2010

Abstract

Emerging economies are generally characterized by special focus on social sectors for achieving the much needed inclusive growth and sustainability.

This research paper proposes to analyze the various models for social sector funding in the West, and their current dilemma. It also aims to prescribe a model which is commercially viable for India by bringing in the 'viability gap funding' mechanism. It may also offer the much needed solution to the West that are large welfare states for healthcare funding and who are now hampered by international tax competition.

The approach to this problem should aim at shifting the focus away from the state and move towards public-private partnership. At the same time it should also ensure that the interest and initiative from the private players is sustained through the emerging model of 'viability gap funding'.

This paper aims to achieve the twin purpose of effective government supervision and proactive initiatives from the private sector to scale up the intellectual capital which is the very essence of a knowledge economy and also supported by proper healthcare for all.

In a country like India a major cohort of the population is young, and a creative and viable model for funding such projects by roping in the private players and effective supervision by the government could alleviate this problem of lack of funding and the consequent lack of initiatives from the private sector. The findings from this paper may provide sufficient inputs for such a viable model.

Keywords: Sector, Viability Gap Funding, Viable Model, Sustainable Growth

Suggested Citation

Dutta, Anirban, Viability Gap Funding: The Emerging Model for Social Sectors Sustainability (April 12, 2010). Available at SSRN: https://ssrn.com/abstract=1603066

Anirban Dutta (Contact Author)

Alliance University - School of Business ( email )

Anekal Main Road
Anekal
Bangalore, 562106
India
+91.80.3093 8209 (Phone)

Genpact India Pvt. Ltd. ( email )

DLF Phase 5
Gurgaon
India
9051138805 (Phone)

HOME PAGE: http://www.genpact.com

Do you have negative results from your research you’d like to share?

Paper statistics

Abstract Views
940
PlumX Metrics