Ultimately amid the great benefits of new products where financial promoters often fall down is on the hype and on the glib. In this case a useful article about an interesting avenue and its offshoots for investment obsesses on a prevailing, incorrect socialist myth about income and wealth disparity actually being a problem – yes it is when it’s Egypt and the bottom end of society are in poverty and unable to move up the ladder but it cannot be applied to every society with a broad (glib) brushstroke.
Indeed in the UK the income gap has actually narrowed in recent statistics.
The thing we need is development and growth. Nobody gets that by attacking the top or the middle or anywhere else. Lifting the bottom is the key and that is how SIBs can clearly help in a way which is symbiotic for all members of society. This is the great benefit of Pay for Performance bonds.
Capitalism 2.0 In The Advent Of The Growing Income Gap
blue & green tomorrow
There is something in the air. Collaborative working spaces, social innovation, crowdsourcing and crowdfunding, impact investing, social impact bonds, venture-philanthropy, social enterprises, triple-bottom lines, social return on investment and social entrepreneurship are all on the rise.
Organisations like the Hub and the Centre for Social Innovation in Canada are flourishing with social entrepreneur memberships and incubating various start-ups or social enterprises; IndieGogo and Kickstarter are just two of the dozens of crowdfunding platforms now available; MaRsDD, the Rockefeller foundation, Deloitte, FinanceForGood and many others are all exploring the notion of social impact bonds, impact investing and other new innovative ways to fund initiatives for impact; funders like the Ontario Trillium Foundation are looking for non-profits to demonstrate a social return on investment and are encouraging them to act more like enterprises; and philanthropists are even being encouraged to act more like socially-minded investors.
These shifts in business are not occurring within silos; they are all a part of a larger movement – a movement that is gaining traction and may be referred to as Capitalism 2.0.