Two interesting stories to end the week:
Government’s Big Problem & How To Fix It
John Roman, Ph.D. – The Huffington Post
In public policy (and life in general), addressing a dangerous risk is more cost-effective than fixing a problem after it emerges. Yet, most government spending is focused on reacting to problems rather than preventing them. A new approach to funding called pay for success (PFS) has emerged as a potential solution to this dilemma.
Social Entrepreneurship Focus Of Conference At UVa
Tim Shea – Charlottesville Tomorrow
More than 250 government and business leaders packed Newcomb Hall at the University of Virginia recently to learn about a creative financing tool aimed at solving social problems.
Under the innovative funding mechanism — known as pay for success bonds, or social impact bonds — private investors put up money and manage a public project. They are usually targeted at improving outcomes for at-risk populations, with the end goal of reducing government spending on those populations in the long term.