Three good stories today. The NY Times headline says it all while the global element to DIBs is huge in the third story. Meanwhile a typically robust piece from Australia promoting the bonds…
The New York Times
The Development Impact Bond is almost exactly the same as the Social Impact Bond, the hottest idea in social-service provision (an oxymoron if ever there was one) of the last few years. One difference is who repays investors if the program succeeds. With a social impact bond, the government does. With a development bond, payment would fall to international donors such as foundations or government agencies such as Britain’s Department for International Development or the U.S. Agency for International Development.
There’s one more difference — D.I.B.’s don’t yet exist. They are just a gleam in the eye of a few creative thinkers — specifically, those who make up the Development Impact Bonds Working Group, which has just published a draft containing feasibility studies for six potential D.I.B.’s, including the sleeping sickness project.
Today’s homeless are very different to even 10 years ago, says Homelessness NSW CEO, Gary Moore.
New investment to reduce the risk of homelessness, to get people out of the homeless services system quickly and to focus on post-crisis support are key, Mr Moore said.
Mr Moore said measures like social impact bonds, NDIS-style consumer payments, targeted tax breaks for community housing investment, encouraging better use of under-utilised dwellings, and more effective rental brokerage and tenancy maintenance schemes should all be examined.
Center for Global Development
The UK Ministry of Justice has released interim results for the Peterborough Prison Social Impact Bond: reconviction of former prisoners in the pilot has been reduced by 6% over two years, compared to a national increase of 16% over the same period. Although it is too soon to draw conclusions about the success of the Peterborough SIB, these early numbers suggest that programmes to reduce recidivism are being managed well and are addressing the needs of Peterborough ex-prisoners. The innovation of the Social Impact Bond is not just that it is a new financing instrument but that this has created space for a new business model for delivering complex social services. It is this possibility of opening up new ways to manage service delivery that led us to consider whether a similar approach could also be important for development.