Social Impact Bonds
SIBs have emerged in recent years as an innovative way to provide public-private partnerships (PPPs) with welfare services that pay private entities for achieving measurable impact. Essentially, social impact bonds (SIBs) are contracts between the government and the public sector that fund better outcomes for citizens and pass the savings on to investors. Through performance-based contracts, social
impact bonds are a unique form of public-private partnership.
In emerging or developing countries, Social Impact Bonds can be set up to finance public policies of general interest. People and organizations that are interested in contributing to the development of the nation can greatly benefit from these bonds. Social Impact Bonds help individuals/businesses to identify the problems in different sectors and find possible solutions, raise funds for the project from private investors and assess the project’s success. Although the biggest challenge for the parties involved is that in traditional means it becomes difficult to track and record the progress of the project or to know the impact caused.
Incorporating trending & smart technologies, the technological advancements have upgraded the opportunity for individuals and organizations that are interested in SIBs. They can track the progress of the projects and optimisess to avoid any kinds of risks. Investors can also check the possible returns in the digital interface.
