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The Potential and Limitations of Impact Bonds

1 January 2015
Case Study
Publisher : Brookings

16249

This paper explores the potential benefits and limitations of impact bonds, which aim to attract private investment to social programs by linking returns to achieved outcomes. It discusses how these bonds can bring together diverse expertise, enable investment in prevention, and foster flexibility in service delivery. However, it also highlights challenges such as complexity, high development costs, difficulties in defining measurable outcomes, and the potential for limited innovation or the “financialisation” of public services.

Author(s) :

Emily Gustafsson-Wright, Sophie Gardiner, Vidya Putcha

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Key topics

Innovative Finance/ Blended Finance

Also found in

Financial Stewardship, Sustainability, & Accountability

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