Social Service, Private Gain: The Political Economy of Social Impact Bonds

By Jesse Hajer and John Loxley

© 2021

The 2008 financial crisis and its subsequent economic impacts generated a challenge for national and regional governments across the world. From this economic ruin, the Social Impact Bond (SIB) was born as an alternative mechanism for government procurement and delivery of social public services.

Social Service, Private Gain examines the evolution of SIBs, how they work, what their theoretical motivation is, and their proliferation globally in their short period of existence. The main intervention of the book is to critically assess the potential of SIBs to constructively contribute to solving the multi-faceted social challenges emerging from a context of entrenched and growing inequality. Claiming to bring incremental resources to the rescue, SIBs have taken up disproportionate space with new legislation, policy, subsidies, institutional supports, lobbyists, and "intermediaries" facilitating SIBs and thriving on their associated transactions costs. Drawing on mainstream and unconventional economic theory, practical case studies, and empirical data, Jesse Hajer and John Loxley generate new insights based on the limited but still suggestive publicly available data on SIBs projects. Challenging the assumptions and narratives put forward by proponents of the model, they offer practical policy recommendations for SIBs along with what the model tells us about the potential for transformational change for the better.

Continue Reading Read Less

Product Details

  • World Rights
  • Page Count: 384 pages
  • Dimensions: 6.0in x 1.0in x 9.0in
Product Formats

SaveUP TO 9239

Book Formats

SKU# SP005037

  • AVAILABLE JUL 2021

    From: $29.96

    Regular Price: $39.95

    ISBN 9781487526917
  • AVAILABLE JUL 2021

    From: $63.75

    Regular Price: $85.00

    ISBN 9781487503284
  • AVAILABLE JUL 2021

    From: $29.96

    Regular Price: $39.95

Quick Overview

This book examines Social Impact Bonds as a means to finance social services, and how mainstream and heterodox economic theory can help understand their existence and emergence.

Social Service, Private Gain: The Political Economy of Social Impact Bonds

By Jesse Hajer and John Loxley

© 2021

The 2008 financial crisis and its subsequent economic impacts generated a challenge for national and regional governments across the world. From this economic ruin, the Social Impact Bond (SIB) was born as an alternative mechanism for government procurement and delivery of social public services.

Social Service, Private Gain examines the evolution of SIBs, how they work, what their theoretical motivation is, and their proliferation globally in their short period of existence. The main intervention of the book is to critically assess the potential of SIBs to constructively contribute to solving the multi-faceted social challenges emerging from a context of entrenched and growing inequality. Claiming to bring incremental resources to the rescue, SIBs have taken up disproportionate space with new legislation, policy, subsidies, institutional supports, lobbyists, and "intermediaries" facilitating SIBs and thriving on their associated transactions costs. Drawing on mainstream and unconventional economic theory, practical case studies, and empirical data, Jesse Hajer and John Loxley generate new insights based on the limited but still suggestive publicly available data on SIBs projects. Challenging the assumptions and narratives put forward by proponents of the model, they offer practical policy recommendations for SIBs along with what the model tells us about the potential for transformational change for the better.

Continue Reading Read Less

Product Details

  • World Rights
  • Page Count: 384 pages
  • Dimensions: 6.0in x 1.0in x 9.0in
  • Author Information

    Jesse Hajer is a professor in the Department of Economics at the University of Manitoba.


    John Loxley was a professor in the Department of Economics at the University of Manitoba and a Fellow of the Royal Society of Canada.
  • Table of contents

    Preface 
    Acknowledgements 
    List of Tables 
    List of Figures 

    INTRODUCTION

    Part A: The Characteristics and Emergence of the Social Impact Bond Model

    Chapter 1: The Structure of Social Impact Bonds 
    Introduction 
    I. Defining SIBs 
    II. Public versus Private Dimensions in Social Service Provision
    III. Defining Features of SIBs 
    IV. Conclusion 

    Chapter 2: The Short History of SIBs and the Development of the Enabling Field 
    Introduction 
    I. The Scale of Impact Bonds by Sector 
    II. The Distribution of SIBs by Country 
    III. SIBs Delivering results 
    IV. Investor returns 
    V. Conclusion 

    Part B: Efficiency-Based Explanations of SIB Emergence

    Chapter 3: The Rationale of SIBs 
    Introduction 
    I. Claim 1: SIBs Allow More Social Programs to be Delivered 
    II. Claim 2: Better programs: Higher quality and greater effectiveness 
    III. Claim 3: Better system: 
    IV. Conclusion 

    Chapter 4: Social Impact Bonds as Public Private Partnerships
    Introduction 
    I. Review of the Public Private Partnership (PPP) Infrastructure Delivery Model
    II. SIBs as Public Private Partnerships
    III. Economic Theory and Modeling of PPPs and SIBs
    IV. A Comparative Framework for Evaluating SIBs versus conventional procurement 
    V. Conclusion

    Part C: The Political Economy of SIBS

    Chapter 5: Private Institutional Participants in SIBs
    Introduction 
    I. The Institutional Participants in SIBs
    II. Service Providers: The Significance of the Non-Profit Form 
    III. Altruism, Intrinsic Motivation and Reciprocity 
    IV. Implications for SIB Implementation and Design
    V. Conclusion

    Chapter 6: Government
    Introduction 
    I. Motivations of Government
    II. Relative Cost Critique
    III. Theories of the State
    IV. Implications for SIB Design and Regulation
    V. Conclusion

    Chapter 7: The Political Economic Context of SIB Emergence
    Introduction
    I. Defining neoliberalism
    II. Financialization
    III. Comparative Analysis of SIB Leaders and Followers
    IV. Side note: The UK Versus the US
    V. Conclusion

    Chapter 8: Development Impact Bonds
    Introduction
    I. Expanding Enabling Fields 
    II. Examples of DIBs 
    III. Other Observations on Existing DIBs 
    IV. A Closer Look at the Claimed Rationale of Results-Based Aid and its Challenges 
    V. Are DIBs the Future for Foreign Aid? 
    VI. DIBs and the Need for Foreign Aid 

    Chapter 9: Policy Recommendations, Reforms and Alternatives 
    Introduction 
    I. Recap of Policy Recommendations 
    II. The Micro Alternative: Conventional delivery through (re)building state capacity 
    III. The Macro Alternative: Universalism vs. Individualized Approaches 
    IV. Conclusion 

    References 

    Appendix A Review of Meta-analytical Studies on Common SIB Policy Sectors 
    Appendix B: Sector Proportion of SIBs, by Country 
    Appendix C: Reported and Estimated SIB Maximum and Expected Investor Returns 
    Appendix D: Description of Value for Money Analysis in Applied Public Finance 
    Appendix E: Social Investment and Entrepreneurship Concepts 
    Appendix F: Development Impact Bonds

Related Titles