How do social impact bonds really work?
Social impact bonds (SIBs) seem irresistible. With the goal to pursue some form of social impact, the government contracts a provider which is financed by a third party investor. While the provider and the investor share the delivery risk, the public only pays in case the specified goal is achieved. Everybody wins! Or is the reassuring logic of SIBs too good to be true? The website Howdosocialimpactbondswork.com shows in the shortest way possible, well, how social impact bonds work.