June 18, 2024. Costa Rica is the center of the global dialogue on impact investing with the participation of more than a hundred international experts discussing the future of this approach to sustainable economy and with repercussions beyond financial return. Among the topics to be discussed are field-based investment, social innovation experiences, impact investment implementation projects, public-private partnerships and success stories in which investment has generated a substantial improvement in the lives of people in vulnerable communities.
From June 17-21, Costa Rica will host a series of events focused on impact investing, including the General Leadership Meeting (GLM) 2024, organized by GSG Impact on the 19th and 20th. In addition, National Partners in Latin America have scheduled additional meetings on the 17th, 18th and 21st to explore key topics such as place-based impact investment and public-private partnerships.
This edition of the GSG Impact General Leadership Meeting is being held for the first time outside Europe and is also the first time it has taken place in Latin America. It also marks the first time that the GLM is organized collectively by a region, rather than being managed by a single country.
Shannon Music, Director of Operations and Strategic Partnerships at VIVA Idea welcomed all the international guests and noted that “When we presented this idea to the GSG, our goal was to bring the discussion on impact investing to a developing country, in order to highlight the specific challenges that emerging markets face when implementing this type of investment.”
Music is on the Board of Trustees of GSG Impact and is also co-chair of the Central American Impact Investment Platform (PiiC), GSG Impact’s regional partner.
The VIVA Idea team developed the concept and agenda and realized that they not only wanted to discuss this topic and present concrete examples of what is happening in this region of the world, but also tap into global talent for input while exploring a valuable concept to promote sustainable development and social progress in Latin American countries. “The concept is place-based impact investment,” Music said at the start of the meetings.
Place-based impact investment thus becomes the focus of discussions among a group of specialists from around the world gathered in Costa Rica.
The conversation includes a panel discussion, analysis through the experiences of three different organizations and their cases, as well as a group discussion in a workshop led by VIVA Idea to explore place-based impact investment as a strategy for developing countries, and the results will feed into the work agendas of the Latin American National Partners.
An impact investment is one that generates returns for investors while bringing concrete and measurable benefits to society and the planet. But place-based impact investment goes beyond that and requires some consideration of the context in which it takes place.
Sir Ronnie Cohen, a pioneer of impact investing, defines this approach as the “invisible heart of the market,” highlighting its dual objective of measurable impact and financial return. “When most investors make decisions as much about impact as their returns, then we will have impact economies,” Cohen declared at the opening of GLM 2024. 
If there is an invisible hand regulating the market, Cohen has pointed out that impact investing is the invisible heart.
The well-known investor and philanthropist highlighted the need for accurate metrics to differentiate impact investing from the ESG approach. “ESG promises both impact and return, but does not measure impact accurately. Now more than ever shows the need for measurement,” said Cohen.
Sir Ronnie Cohen is a leading international philanthropist, venture capitalist, private equity investor and social innovator, who is driving the global impact revolution.
Cliff Prior, CEO of GSGImpact, said that impact investing is “a transformation where money and other resources go towards positive impact objectives” and added that “it is a new financial system that is growing rapidly”.
In 2022, the money available for impact investing in the world reached 1 trillion 164 billion dollars globally (US$ 1,164,000,000,000,000,000). Of this total, in Latin America the figure is close to four thousand eight hundred million dollars (US$4,800,000,000,000).
Roberto Artavia, president of VIVA Trust, VIVA Idea and INCAE Business School, supported Cohen’s vision, emphasizing that the impact economy must think long-term. “The impact economy has to think in terms of generations, because problems are not solvable in the immediacy,” Artavia said. He also stressed the importance of diversity and transparency in the marketplace to drive effective change.
Nick Hurd, another speaker on the first panel on Monday 17 at the Spanish Cultural Center, called on governments to take more decisive action to force companies to make a positive impact. Although progress has been made through incentives, much remains to be done, Hurd insisted.
Flora Montealegre, executive director of CRUSA, highlighted Costa Rica’s achievements in sustainable development and conservation, noting pending challenges in education and quality employment. “We still have many challenges, such as education and quality employment, for certain sectors of education,” admitted Montealegre. He stressed the need to rethink the country’s development model and the work of Fundación CRUSA in innovating projects for social change.
CRUSA Foundation is one of the organizations that collaborated to carry out this series of events on sustainable economies. CRUSA Foundation, from 2018 to 2023, has invested more than $20 million, leveraging more than $80 million, in collaboration with more than 60 organizations, benefiting more than 90 thousand people. Montealegre emphasized that “investment must be strategic, collaborative and benefit the greatest number of people”.
Place-based impact investment will be a central theme at this year’s GLM meetings. This approach uses geography to contextualize investments in a specific community, considering local social, environmental and economic factors.
VIVA Idea, together with GSG Impact’s Latin American National Partners, seeks to promote this innovative approach, convinced that it can offer sustainable solutions and lasting benefits for both communities and investors.
For VIVA Idea, impact investing is key to advancing vulnerable communities, bringing investment to where it is most needed and creating positive environmental and social impacts.