1 / 13

Harnessing Social Policy Bonds for Effective Social Change

Social Policy Bonds offer a transformative approach to tackling complex social and environmental issues. By focusing on clear, targeted outcomes, they enable governments and markets to work synergistically. This method rewards the achievement of desired outcomes instead of traditional mechanisms that often only perpetuate problems. With efficiency, stability, and transparency, Social Policy Bonds create financial incentives for stakeholders to focus on meaningful change. By auctioning bonds to the highest bidders, this strategy aligns financial rewards with societal goals, fostering innovative solutions to pressing challenges.

rhona
Télécharger la présentation

Harnessing Social Policy Bonds for Effective Social Change

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Policy as if outcomes mattered Social Policy Bonds www.SocialGoals.com

  2. Outcomes • Social and environmental outcomes are those that are meaningful to ordinary people

  3. Social problems are currently solved indirectly • Relies on correct identification of relationship between cause and effect • Depends on people whose success does not generate greater financial reward

  4. Where government works best • Relationship between cause and effect is clear and static • But today many social and environmental problems are complex and fast changing • Best solutions to such problems are evolutionary: terminate failures

  5. The unimportance of being right • Failures don’t terminate: they can self-perpetuate or even self-reinforce • Success and reward are uncorrelated

  6. Society is complex and fast-changing • Too complex for any single organisation to comprehend • Need evolutionary methods: diverse, adaptive approaches

  7. Solution • Specify targeted outcome • Reward achievement of the outcome • Subordinate markets to outcomes, not the other way round

  8. Social Policy Bonds • Contract out achievement of outcome to highest bidders • Bonds auctioned and tradeable • Bonds redeemable once objective achieved

  9. Generating incentives • Market value of bonds approach redemption level as goal becomes more likely • Incentives cascade down from bond holders • Incentives dictate structure as well as activities

  10. Potential problems • Free-riders? • Rewarding people out of proportion to their efforts?

  11. Advantages • Efficiency • Stability • Transparency • Buy-in

  12. Social Policy Bonds • Governments do what they are good at: • Articulating society’s goals • Raising revenue • Markets do what they are good at: • Allocating scarce resources with maximum efficiency

  13. Social Policy Bonds • www.SocialGoals.com • rh@socialgoals.com

More Related