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, auctioned on the open market, 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 most efficient operators - whether they be in the private private or public sector. Because Social Policy Bonds do not prejudge how objectives shall be achieved nor who shall achieve them, they would encourage diverse, adaptive solutions.
Social Policy Bonds could target any quantifiable social and environmental goals, such as less pollution, less crime, better health, and universal literacy. At the global level, Social Policy Bonds could reduce the consequences of natural or man-made disasters and bring about an end to violent political conflict. Because a Social Policy Bond regime would enhance the efficiency, stability and transparency of policymaking, it could encompass goals that are currently ignored policymakers.
For summaries of the Social Policy Bond principle, see under the Overviews link in the left-hand menu. For essays about how to apply Social Policy Bonds to different policy areas, click on Applications. For news of, and media reaction to, the concept see News. To read about some more detailed aspects and implications of the bonds see Features. To buy the print or Kindle versions of the definitive book about Social Policy Bonds and to read excerpts, click on The book, where you will also see links to pdf files of the book's chapters, all of which can be freely downloaded. To see why I am ambivalent about Social Impact Bonds, click here or here. Answers to Frequently Asked Questions can be found on the FAQs page.
People other than governments can issue Social Policy Bonds and the Issue your own page in the left-hand menu links to a paper explaining how. To keep up to date with my most recent thoughts on the bonds and policy, click on News in the left-hand menu and the Social Policy Bonds blog. For links to my blog, how to contact me and some of my other work please click on Blog/Contact in the left-hand menu. For criticisms of Social Policy Bonds, and my responses please see Criticism in the left-hand menu.
