Bonos de Impacto Social – EN webmaster
A Social Impact Bond (SIB) is a financing mechanism that combines outcome payments, cooperation between public and private sector, and impact investing to resolve social problems. Initially developed by Social Finance as a mechanism of separation between the cost of a social intervention and the cost of actually obtaining results, SIBs allow public spending to be transformed towards cost efficient, preventive policies.
A SIB has one or more investors providing the working capital needed by the intervention, one or more service provider specialized in the social problem at hand, and one or more outcome payers form the public sector that repay the investors if and when the expected results are achieved.
Trifecta of benefits for taxpayers, governments, and investors
Greater transparency in the use of public resources
Transfers the risk of implementation of social interventions from the government to the private sector, allowing the government to have greater incentives to innovate in preventive policies
Flexible interventions that adapt to each participant´s needs unlike anyother public program that employs a “cookie cutter” approach to social interventions