It may seem beyond this parish but I would note the sad demise of David Bowie, may he rest in peace, who, in addition to his popular music escapades, made a footnote in financial history with his bond issuance securitising recording royalties to a bond. This innovation (created by banker David Pullman) is clearly amongst the parental lineage of the Social Impact Bond family. Thus we thank Ziggy Stardust for encouraging the development of Pay For Success structures.
In the US, there are more opportunities to fund education (‘though it may be no bad idea to inject competition to encourage lower cost of provision through technology too) while in the UK ongoing public distrust with the NGO sector is encouraging expansion of Freedom of Information to what amounts to an increasingly politicised and often opaque, consumer of government subsidy.
Sean Cavanagh – EDWEEK
A provision in the Every Student Succeeds Act supports a relatively new approach to investing in public education, one in which private and public entities that pour money into school programs can get financial rewards if they show results.
The law calls those efforts “pay for success” initiatives. It’s a concept that has been tested in different areas of government, including with public preschool students in Utah, where it has generated controversy.
Mark Wallace – Conservative Home
It’s always nice to see an idea go from a ConHome blogpost to Government policy – and I’m pleased to report that another example appears to be in the offing.
Back in August, as the Kids Company fiasco reached its peak, I suggested some ways to avoid such disasters in future.