The Importance Of Social Bonds

1418 Words 6 Pages
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 …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, …show more content…
They have more of a responsibility to change or adapted the program if it isn’t working. Investors may not have the same concern for the people dealing with these social issues. Money could be the driving factor for people investing, rather than improving social issues. Although it is positive within communities to have private sectors funding social issues, the lack of knowledge from other social bonds being used overseas is concerning and a risk for investors. Investors may be getting involved in a program that is deemed to be a failure and the Government just using taxpayer money to bail them out (Davidson, 2015). The right blend for implementing social bonds is to have the private investors having majority of the control. They are the ones funding the start of the investment and need the ability to fund and help the organisations freely. However, without the support of the Government and the enticing reward for achieving goals, private sectors would not invest (Griffiths & Meinicke, 2014). Without the Government support, social bonds would not be successful in New Zealand. Everyone with mental health issues needs equal ability to be funded by this program, even if they are the more difficult and expensive

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