Interesting news from Queensland while our lead story wonders if SIBs can survive. ….against a background where government is bust pretty much the world over, I think the question is how would society fare if SIBs are not sustained?
Where next with social impact bonds? Will they redefine how governments provide highly effective social services, spur outcome-based innovation among service providers, and provide financial returns for investors willing to take risks; or will social impact bonds join the graveyard of overhyped innovations that couldn’t scale beyond a few demonstrations?
Will social impact bonds join the graveyard of overhyped innovations that couldn’t scale beyond a few demonstrations?
THE $1.5 trillion superannuation sector and the Queensland government are eyeing NSW’s pioneering use of bonds to invest in social infrastructure and, in one instance, help rehabilitate young sex offenders.
The bond-style model would be a first for Queensland, closing a tender on Friday for a “payment by outcome” program it hopes will find a way to deal with young indigenous repeat sex offenders in Townsville.
Social bonds raise capital for investment in an area of policy and pay a return — from public savings — where a measurable outcome has been achieved, for example, reducing the number of children in foster care.
Such bonds have long been used in Britain, but Australia had never used the innovative financial product to address public issues until the NSW government launched a $7 million bond in March to help keep struggling parents of newborn children together as a family.