Three good articles today, the DIB working group report as well as analysis of how the USA and Canada need to use SIBs/DIBs to help keep the wheels of anticipated government programmes functioning…
Despite a series of public announcements made by governments across the country over the past few years, the provocative SIB model has remained relatively under the radar in Canada. However, the Canadian marketplace is awakening, quietly shifting from concept ideation to more rigorous analysis of the opportunities.
How these opportunities are being unearthed may surprise you.
Canadian non-profits have not had the benefit of an RFI/RFP process to respond to, as in the State of Massachusetts, nor have they received support from a social innovation fund. There is no centralized technical expertise in government, nor is there a Social Outcomes Fund to incentivize government implementation. And no, we don’t have a £600 million fund as a primary investor to fuel the market.
Despite not having this catalytic infrastructure, Canadian non-profits continue to innovate and are showing an interest in experimenting with new funding models.
In a bygone era government was solely responsible for addressing the Nation’s biggest problems, from building the interstate highway system to the New Deal social programs. However, today’s challenges are more complicated and interconnected than ever before and cannot be solved by a single actor or solution.
That is why government has an opportunity to engage with the actors in the Impact Economy from non-profits to businesses. The results could create jobs, drive new solutions, and catalyze a vibrant new economy.
Government has an opportunity to work with non-profits, the private sector, and organizations in between (such as social enterprises) to solve some of nation’s toughest challenges by catalyzing the Impact Economy. It is already experimenting with initiatives such as the Social Innovation Fund (SIF), the Small Business Administration’s (SBA) SBIC Impact Investing Program, and Social Impact Bonds (SIBs).
The Report of the Development Impact Bond Working Group
This report by the Center for Global Development and Social Finance explains how Development Impact Bonds (DIBs) can increase the efficiency and effectiveness of development funding. Based on Social Impact Bonds in industrialized countries, a DIB creates a contract between private investors and donors or governments who have agreed upon a shared development goal.