PLY: Money is a curious thing as evidenced by the Salt Lake Op-Ed first up. It realises there isn’t any way government can extend its already over-extended, indebted, position but at the same time describes SIBs as a ‘pseudo-science.’ Arguing against the money irrational is a challenge but as I will not tire of noting the industry can do so with patient coherent arguments pushing the case for SIBs.
Op-ed: Utah Schools Deserve Better Than Pseudo-Science Of ‘Pay for Success’
Luke Garrott – Salt Lake Tribune
The concept of a “social-impact bond” sounds good. There is a need for investment in segments of the population that consume disproportionate amount of resources, like the chronically homeless, early-onset diabetics or kids who fall behind in school. The idea is that if you intervene early and with precision, like spending money on “housing first” to keep the chronically homeless out of emergency rooms, nutrition and exercise for school kids who are trending towards obesity or pre-K for “at-risk” youth who are headed for special education, then lives are improved and money is saved.
But government doesn’t have the money, so it’s increasingly turning to private-sector partners like Goldman Sachs. As someone who cringes at seeing the commercialization of public space, especially schools, I am naturally skeptical. But if public money truly isn’t there, then the concept of a social-impact bond is worth trying. If the program works — the chronically homeless make fewer ER visits, kids don’t get Type-2 diabetes or special ed isn’t needed — then the government pays back the investor with the savings created by the intervention. Sounds pretty good, right?
Big Society Capital Names Cliff Prior As New Chief (subscription)
Sarah Gordon – Financial Times
Big Society Capital, the social investment firm set up by financier Sir Ronald Cohen, is to appoint Cliff Prior as its new chief executive.
Mr Prior will take over from Nick O’Donohoe, the company’s first chief, who is joining the Bill and Melinda Gates Foundation as a senior adviser on blended finance.