The upbeat news is from Australia, the second article appears somewhat myopic suggesting NPX is the only way forward…
Antony McMullen – Pro Bono Australia
In an Australian first, the New South Wales Government will target prisoner reoffending through a new impact investment. This is a positive public policy move and contrasts with the usual “law and order auction” that results in harsher sentencing and prison being only seen through the prism of punishment. Research tells us that longer sentences and time inside do not act as a crime deterrent.
Apart from reducing real harm in community there is money to be saved. It costs around $74,000 per annum (or about $200 a day) to incarcerate a prisoner. Costs particularly spiral when prison becomes a revolving door. According to the Saturday Age the Victorian recidivism (repeat-offending) rate for 2013/2014 was 40 per cent, up from a low of 34 per cent four years previous. This is where social impact bonds come in through investing in rehabilitation rather than more prison beds.
Not Very Social, Not Very Impactful, Not Really Bonds: The Capital Market’s Holy Roman Empire
Lewis McLellan – GlobalCapital
Inaccurately named and providing only debatable value, the PFS SIBs are not the panacea some hoped they might be.