Three good articles to read today, rounding off another eventful week in SIB News!
SIBs Can Help Solve Difficult Social Problems
Greg Keesling – The Hill
Our nonprofit, RecycleForce, is a social enterprise providing life-changing employment and workforce training to formerly incarcerated individuals by offering some of the most comprehensive and innovative recycling services in Indiana. We are pleased that our recycling provides much of our nonprofit’s revenue each year, but because our model is heavy on training and counseling costs, the revenue from the recycling operation does not cover all of our costs. Every year presents a new challenge to identify and cobble together various grants, government contracts and philanthropic support to fill that funding gap and advance our mission. Every minute that we spend seeking additional funds is a minute we are not serving our employees and our community.
One especially exciting idea to address the way we, as a society, respond to these problems is the creation of social impact bonds (SIBs). SIBs are innovative, results-focused financial instruments that create public-private partnerships to address some of our nation’s most intractable and pressing social challenges. SIBs present an opportunity for governments to address root causes of societal issues by scaling up preventative social and public health interventions.
Australia – Treasurer Curtis Pitt’s Budget Leaks Point To A Mole In Treasury
Amy Remeikis – Brisbane Times
Queensland Treasurer Curtis Pitt said it was “concerning” he appeared to have a talkative “little birdie” in Treasury, but said he would not be engaging in a game of whack-a-mole.
The government has been whispering of a mole since Opposition Leader Lawrence Springborg announced the LNP’s intention to instigate a Social Benefit Bond trial at the party’s State Convention on Sunday.
Social Benefit Bonds were part of the “innovation” measures announced by Mr Pitt in his first budget, with $3 million set aside for the program.
Market-led proposals were another common-element between the two parties.
Opposition Leader Lawrence Springborg took the opportunity of praising the government for following its lead, singling out the measures as some of the very few positive items contained in the budget.
But Mr Pitt said he smelt a skunk.
How Private Sources Of Development Finance Could Be Key To Asia’s Future
Stephen Groff – The Guardian
On a larger scale, we need to shift our focus to outcomes from private sector support – not just inputs. Social impact bonds, for example, help governments address one of their biggest challenges – finding the resources to deliver quality public services – by getting private investors to fund them. These bonds encourage investors to provide working capital to a service provider. In return, investors receive a return over time, dependent on the actual services delivered. This arrangement makes service providers more innovative and cost effective, while lifting funding pressures from governments. In India, this kind of financial product has been used to help get girls into school.