A Policy Outcomes Comparison: Does SIB Market Discipline Narrow Social Rights?

Abstract

This article argues that the outcomes-based management schemes in social impact bonds (SIBs) simplify social impact and often ignore the complex ecosystem of more powerful actors that contribute to social problems. Using human ecological theory, it focuses on early care and education SIBs across the OECD to show how the focus on clients and metrics at the micro scale fails to achieve broad outcomes and may even narrow social rights. By contrast, SIBs that focus on meso- and macro-level actors have more opportunity to effect systemic change and broaden social rights. However, SIBs are rarely focused on powerful private market actors.