Review:
Social Impact Bonds
overall review score: 4.3
⭐⭐⭐⭐⭐
score is between 0 and 5
Social impact bonds (SIBs) are a financial tool that enables the public sector to leverage private capital to fund social programs with a focus on achieving measurable outcomes.
Key Features
- Partnership between government, investors, and service providers
- Outcome-based funding model
- Potential for risk-sharing between stakeholders
Pros
- Encourages innovation in social service delivery
- Shifts risk from taxpayers to investors
- Focuses on measurable results
Cons
- Complex structure may be difficult to implement
- Potential for conflicts of interest among stakeholders
- Limited evidence of long-term impact