The Antipodean SIB movement spreads – as the Kiwis look at bringing more SIBs to New Zealand. That is a marvellous boost coming from a nation which starting with Labour PM, the late, great, David Lange has a long and dynamic history of making the economy better for all while not being afraid to us all manner of deregulatory and innovative methods to do so.
We conclude with an article by some interloper called Patrick L Young (whoever he is) discussing Britain’s economic future. You can skim to near the end where he endorses the deployment of more Social Impact Bond structures (as was indeed a manifesto commitment by the governing Conservatives, amongst other parties). Alas the traditional UK NGO community will probably be apoplectic at my prognosis of what is to come but then again they appear broadly to be reluctant to endorse PFS structures despite the reality that the magic money fairy era giving grants left, right and centre, has evaporated.
Investing For Success: Social Impact Bonds & The Future Of Public Services
The New Zealand Initiative
Across the public sector, New Zealand is exploring new ways of contracting and delivering social services.
Social Impact Bonds (SIBs) – sometimes referred to as social bonds in New Zealand – is another innovative way of funding and delivering social services.
SIBs are an attractive model because their potential to shift financial risk from taxpayers to the public sector, they incentivise achieving outcomes, and can offer social service providers more freedom and flexibility than traditional government contracting.
This report introduces the concept of SIBs, outlining its general strengths and challenges. The report then looks at how SIBs have been implemented overseas, and what lessons New Zealand can learn from overseas experience. Finally, the report includes a number of suggestions for how SIBs can be successfully applied in New Zealand, given our unique political and regulatory environment.
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Treasury Should Lead The Way On Social Impact Bonds
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Treasury should set up a special unit to lead private companies looking to make a return on social services, a new report says.
Social impact bonds are becoming more frequent in the United States and the United Kingdom, but have yet to be tested in New Zealand.
They involve private and non-profit organisations partnering with the Government to fund and deliver services to improve social outcomes.
If the contracts achieve agreed results, investors get paid back their investment plus a return.
Right-wing think-tank The New Zealand Initiative has released a report analysing overseas examples and looking at the application of social bonds in New Zealand.
One of the authors, Dr Bryce Wilkinson, said they could have a real impact here.
Innovation Through Social Bonds ‘Offers Results’
Voxy
Innovation in delivering government services through social impact bonds works overseas and could work here too, says Äkina Foundation CEO Alex Hannant.
Responding to today’s release of The New Zealand Initiative’s report Investing for Success: Social Impact Bonds and the future of public services, Mr Hannant said social impact bonds reward results.
“This model of contracting is focused on results – if you can demonstrate you’re making a difference, you receive payment. It’s part of a move to focus more on outcomes and to encourage innovative ways of achieving them. This means identifying where the biggest changes can be made – often in areas where early interventions make sense and save both harm and money down the line; such as reducing homelessness or reoffending.”
Mr Hannant said this model wouldn’t work for every type of social service and care was needed to ensure that compliance costs were not prohibitive, that the system could not be manipulated and that the intention of the service remained at the heart. He said social impact bonds were not the single answer – it was a complementary tool to deliver results alongside other approaches.
Britain’s Economic Future
Patrick Young – RT
British voters have pragmatically repudiated delusional ‘Mili-marxism’. Now economic upheaval truly begins.
A new air of optimism to overcome the nagging negatives of defeated, defeatist, opponents is vital. Britain must further embrace creative funding approaches such as Social Impact Bonds, improving society, reducing cost & risk to a government without spending capacity. David Cameron must clearly champion private enterprise – the only engine of lasting economic growth.