Social Policy Bonds

What are Social Policy Bonds?

Social Policy Bonds are non-interest bearing bonds, redeemable for a fixed sum only when a targeted social objective has been achieved. The bonds would be backed by government or private bodies, auctioned on the open market, and freely tradable at all times. A Social Policy Bond regime would:

• Inextricably link rewards to outcomes rather than inputs, outputs, activities or institutions; and
• Inject the market’s incentives and efficiencies into the achievement of social and environmental goals.

The effect of a Social Policy Bond regime is to contract out the achievement of social and environmental goals to the private sector. Because they do not prejudge how objectives shall be achieved, the bonds would encourage diverse, adaptive solutions.

Social Policy Bonds could target any quantifiable social and environmental goal: less pollution, less crime, better health and education outcomes, and higher literacy rates, for example. At the global level, Social Policy Bonds could address climate change, the consequences of natural disasters, and violent political conflict (war and civil war). A Social Policy Bond regime would enhance the efficiency, stability and transparency of policymaking.

For summaries of the Social Policy Bond principle, see the links below. For essays about how to apply Social Policy Bonds to different policy areas, click on Applications in the navigation bar. To see how Social Policy Bonds would address current policy issues and to make comments, visit the Social Policy Bonds blog. To buy the definitive book about Social Policy Bonds, click here. To find out more about the book and read excerpts, click on The Book in the navigation bar on the left, where you can also find out how to download the book, free of charge, as a pdf. For a comparison of Social Policy Bonds with the Social Impact Bond concept, see the FAQs of this site. To find out how to contact me via email, click on the last button in the navigation bar. This site last updated 16 September 2012

Social Policy Bonds in 600 words
Social Policy Bonds in 2400 words
Social Policy Bonds in 4200 words
Social Policy Bonds: Powerpoint presentation (13 frames)