Introduction
As funding for non-profit organisations falls annually, government’s across the globe need to look for ways of funding without negatively affecting the public sector. The 2015 New Zealand budget set aside $28.8 million for four social bond programmes. Social bonds are means of funding social developing, non-profit organisations with the aim of minimal public sector impact. Social bonds offer means of funding without risking government cost. However it runs the risk of the private sector jumping on the opportunity to commercialise non-profit organisations. This essay will examine these advantages and disadvantages of the use of social bonds and analyse the appropriate blend of government and business in delivering public services. …show more content…
While it is clear social bond programmes have disadvatages, the positives outweigh the negatives. The negatives do present some concern, however, leading to a conclusion that only a limited number of social bonds should be implemented and this implementation should be done gradually. A smaller number of social bond programs reduce the impact of commercialisation on social services in general and, through gradual implementation, the cost and time to set up the programs will be spread over time and reduce mass reallocation of resources. Additionally, the commercialisation of public services, while a concern, can be monitored by the implementation processes to prevent any impropriety or compromise of social services. These negatives are not so strong as to eliminate social bonds as a valid option. Social bonds provide a funding solution where investors are rewarded by achieving positive outcomes but if unsuccessful, the cost isn’t coming out of the tax payers pocket, this, combined with the benefits of evidence based action provide a hugely beneficial option for governments, which, if introduced in small numbers and gradually, have relatively few …show more content…
This system enhances the benefits of social bonds, reducing the risk of loss to the government and encouraging greater achievement, whilst reducing the impacts of the negatives by spreading out the time and resources required for implementation and reducing any commericialising influence. On this basis, New Zealand should continue their current system of Social Bonds, as they have been implemented gradually and on a limited basis and allow the country to exploit the benefits of this unique concept, particularly in riskier
As funding for non-profit organisations falls annually, government’s across the globe need to look for ways of funding without negatively affecting the public sector. The 2015 New Zealand budget set aside $28.8 million for four social bond programmes. Social bonds are means of funding social developing, non-profit organisations with the aim of minimal public sector impact. Social bonds offer means of funding without risking government cost. However it runs the risk of the private sector jumping on the opportunity to commercialise non-profit organisations. This essay will examine these advantages and disadvantages of the use of social bonds and analyse the appropriate blend of government and business in delivering public services. …show more content…
While it is clear social bond programmes have disadvatages, the positives outweigh the negatives. The negatives do present some concern, however, leading to a conclusion that only a limited number of social bonds should be implemented and this implementation should be done gradually. A smaller number of social bond programs reduce the impact of commercialisation on social services in general and, through gradual implementation, the cost and time to set up the programs will be spread over time and reduce mass reallocation of resources. Additionally, the commercialisation of public services, while a concern, can be monitored by the implementation processes to prevent any impropriety or compromise of social services. These negatives are not so strong as to eliminate social bonds as a valid option. Social bonds provide a funding solution where investors are rewarded by achieving positive outcomes but if unsuccessful, the cost isn’t coming out of the tax payers pocket, this, combined with the benefits of evidence based action provide a hugely beneficial option for governments, which, if introduced in small numbers and gradually, have relatively few …show more content…
This system enhances the benefits of social bonds, reducing the risk of loss to the government and encouraging greater achievement, whilst reducing the impacts of the negatives by spreading out the time and resources required for implementation and reducing any commericialising influence. On this basis, New Zealand should continue their current system of Social Bonds, as they have been implemented gradually and on a limited basis and allow the country to exploit the benefits of this unique concept, particularly in riskier