A Policy Outcomes Comparison: Does SIB Market Discipline Narrow Social Rights?

Abstract

This article argues that the outcomes-based management schemes in social impact bonds (SIBs) simplify social impact and often ignore the complex ecosystem of more powerful actors that contribute to social problems. Using human ecological theory, it focuses on early care and education SIBs across the OECD to show how the focus on clients and metrics at the micro scale fails to achieve broad outcomes and may even narrow social rights. By contrast, SIBs that focus on meso- and macro-level actors have more opportunity to effect systemic change and broaden social rights. However, SIBs are rarely focused on powerful private market actors.

Keywords:

• social impact bonds
• early care and education
• human ecological analysis
• comparative case analysis

Acknowledgments

This work was supported in part by the United States Department of Agriculture (USDA) National Institute of Food and Agriculture, Agricultural and Food Research Initiative Competitive Program, Agriculture Economics and Rural Communities (grant numbers 2017-67023-26226 and 2019-68006-29674). An earlier version of this paper was presented at the Government Outcomes Lab conference on social impact bonds held in Oxford, UK in September 2018.

Additional information

Funding

This work was supported by the Agriculture and Food Research Initiative, US Department of Agriculture, National Institute of Food and Agriculture, Agricultural and Food Research Initiative Competitive Program, Agriculture Economics and Rural Communities [2017-67023-26226 and 2019-68006-29674].

Notes on contributors

Allison E. Tse

Allison E. Tse holds a Master of City & Regional Planning from Cornell University. Her research focuses on social impact bonds as well as fiscal and economic development policy in local governments in the United States and Canada. She currently works for a private foundation in Toronto.

Mildred E. Warner

Mildred E. Warner is a Professor in City & Regional Planning at Cornell University. Her research focuses on the economic development, social services, and environmental policies of local governments. She is an international expert on new models of service delivery and finance, especially in the context of privatization and decentralization.