The Study Of Social Impact Bonds

Social impact bonds(SIBs,for short) make up the imperfection of the partnership between the public section and the private department.They build a stable situation among government,social organization and social capital,and are used as a effective method to deal with the tough social problems within limited funds in western country.SIBs projects to reduce the recidivism rate in western country afford us lessons that merit attention the situation in which public private partnership is prevalent and the recidivism rate is quite high.First of all,this thesis overviews the research documents to understand the internal situation of SIBs study.Overall,there are few research results,and results in finance is a lot,but in public administration is few.To clarify the definition of SIBs,it’s a partnership among government,investor,service provider and other stakeholders. SIBs don’t have fixed revenue,and it’s liquidity is low in the second market. This paper regards SIBs as a new instrument in the impact investment through the precise localization in socially conscious investment.And also,about the other two key tern,recidivism rate and SIBs projects to reduce the recidivism rate,this thesis gives definition to contribute to discussion in the next section.Second,build the basic model of SIBs.The application of SIBs needs to meet five requirements,that is enough high net profit,outcome that is measurable,clearly define the target population,and prevent the target population from harm. And then analyze the actors’ responsibility,include government organizations,project manager,project agency,private investor and other participants.What’s more,from the benefit accounting of SIBs,to discuss the nine basic procedure to structure the SIBs,that is the source of project,define the social problem,design intervention pattern,cost budget,evaluation method,project funds flow and payment plan,management structure,the assessment of outcome and performance appraisal.Third,analyze the function and risk of SIBs.SIBs have five function.They can intervene the social problems early,provide social service professionally,share the investment risk reasonably,strengthen the management ability of intermediary,and also to help build a more responsible government.SIBs have four risks.They can lead to benefit allocation conflict among different level government,concern about the accuracy of result evaluation,imbalance between risk and income of investor,and the challenge about determining the service field.Forth,review the SIBs projects to reduce the recidivism rate among the world.This paper review the SIBs projects’ development circumstance and the service field involved.And then focus on the SIBs projects to reduce the recidivism rate in the United Kingdom and the America to draw lessons learned so far.Fifth,sum up the enlightenment of SIBs for Chinese practice.This thesis analyzes the current situation of Chinese recidivism rate.And then discusses the the system basis of the application of SIBs in the field of recidivism. Ultimately,put forward five suggestion to develop SIBs in China,that is,build recidivism information platform,build SIBs study platform,implement the trial in local level,enlarge the investor scope,and perfect the supporting system.