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, their theoretical motivation, and their global proliferation. The book critically assesses the potential of SIBs to constructively contribute to solving the multifaceted 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 transaction costs. Drawing on mainstream and heterodox 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 SIB projects. Challenging the assumptions and narratives put forward by proponents of the model, they offer practical policy recommendations for SIBs and explain what the model tells us about the potential for transformational change for the better.
About the authors
Jesse Hajer is an assistant professor in the Department of Economics and Labour Studies program at the University of Manitoba.
Born in Sheffield, England, John Loxley came to Manitoba in 1974 to work for the NDP. He became deeply involved for many years with several Aborignal organizations. In 1977, Loxley became a Professor of Economics and the University of Manitoba and later became the head of the department. In 1991, Loxley formed ChoÂ¡cesâ”A Caoalition For Social Justiceâ”in response to the neo-conservative policy decisions being made by the Winnipeg City Council and the Government of Manitoba. Loxley received the Joe Zuken Citizen Activist Award in 200 for outstanding contribution to the social, political, and cultural life of Winnipeg.