Social Policy Bonds

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Social Policy Bonds

URL = http://socialgoals.com

Description

"What are Social Policy Bonds?

Social Policy Bonds are non-interest bearing bonds, redeemable for a fixed sum only when a targeted social objective has been achieved. The bonds would be backed by government or private bodies, floated by auction, and freely tradable at all times.

A Social Policy Bond regime would:

Inextricably link rewards to outcomes rather than inputs, outputs, activities or institutions; and

Inject the market's incentives and efficiencies into the achievement of social and environmental goals.

The effect of a Social Policy Bond regime is to contract out the achievement of social and environmental goals to the private sector. Because they do not prejudge how objectives shall be achieved, the bonds would encourage diverse, adaptive solutions. Social Policy Bonds could target any quantifiable social and environmental goal: less pollution, less crime, better health and education outcomes, and higher literacy rates, for example. At the global level, Social Policy Bonds could address climate change and violent political conflict (war, civil war and terrorism). A Social Policy Bond regime would enhance the efficiency, stability and transparency of policymaking."

The blog on social bonds developments at http://socialgoals.com/blog/blog.html