CY PLAN 113B Lecture Notes - Lecture 21: Social Impact Bond, Rikers Island, Cognitive Behavioral Therapy
26 Dec 2018
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Document Summary
Cd finance tools very effective for expanding access to capital for. Assets like affordable housing, early childhood education centers, charter schools, small businesses. Potential for a return on loans and investments (with risks mitigated through government regulation incentives and guarantees) Social problems- such as gaps in educational attainment, homelessness, recidivism- have been harder for cd to tackle with private sector dollars. Generally rely on grants and program funds that are spent but not recaptured in the form of payments on a loan or investment. Solving these problems generates returns (higher incomes. Lower prison costs) but the wrong pocket problem and the long time frame to get results makes it difficult to get politicians to invest in these program. Financing structure to capture downstream government savings to fund upstream community investments. If there is a discal benefit to social services of community development interventions we should be able to invest in those future savings.
