Social issues are becoming more and more common. The new initiative for New Zealand to use private investors to fund social issues is still not proven to be successful. Many argue that the Government is jumping into a venture they really have no knowledge on, due to lack in number of countries using Social bonds. However the massive potential for improvement in social issues is undeniable using this method. Social bonds seek to help many social issues, with the first in New Zealand looking to get people with mental health issues back into the workforce. This innovative idea should not be used in New Zealand because the Government needs proof the social issue is improving before they get involved. Without Government support, private sectors would not be as inclined to invest in social bonds.
Social Bonds are a new innovative way to allow private, non-profit organisations to fund public services, without Government funding until they are proven to be successful. Social Impact Bonds (SIB) allow the Government to see if social outcomes can be achieved within a time frame with the funding from private investors. The Government repays investors their initial investment …show more content…
Government funding for social issues is very limited and susceptible to being cut. The idea of social bonds helps prevent organisations receiving funding cuts from the Government. In 2014, the Canterbury Health Board put a proposal through to the Ministry of Health to receive $4.5 million dollars towards helping people with mental illness. 67% cases concerning mental illness are children and youth, up to 80% adults in 2014, which increase by 102% from 2013. The staggering amount of people with mental illness is a major concern the community, however the funding was denied (Stewart,
Social Bonds are a new innovative way to allow private, non-profit organisations to fund public services, without Government funding until they are proven to be successful. Social Impact Bonds (SIB) allow the Government to see if social outcomes can be achieved within a time frame with the funding from private investors. The Government repays investors their initial investment …show more content…
Government funding for social issues is very limited and susceptible to being cut. The idea of social bonds helps prevent organisations receiving funding cuts from the Government. In 2014, the Canterbury Health Board put a proposal through to the Ministry of Health to receive $4.5 million dollars towards helping people with mental illness. 67% cases concerning mental illness are children and youth, up to 80% adults in 2014, which increase by 102% from 2013. The staggering amount of people with mental illness is a major concern the community, however the funding was denied (Stewart,