Social Impact Bonds: Instrument of City Change? Tjalling de Vries Municipality of Enschede URBAN FUTURE Global Conference Tjalling de Vries Municipality of Enschede

Social Impact Bond (SIB): a short introduction Traditional subsidies

Social Impact Bond (SIB): a short introduction

What’s new?

Spectrum of investments + + Why would a bank invest in social problems?

Back to reality - The Rotterdam case

6.700 people on welfare benefit (9,4 % unemployment) Relatively low educated population Limited amount of jobs Huge budget problems on welfare for the municipality 6 km away… Low unemployment rate Great job opportunities Back to the future: the Enschede SIB-to-be

Some facts and figures

More facts and figures Datum: spreker:

Is a SIB the Holy Grail for every social problem? So no, it’s not the solution to every problem (but it might solve some).

To good to be true? To agree on a way to measure the real effects of the intervention is HARD! All parties involved must work towards a solid contract, on a base of trust (hence: it takes al lot of time!) Within the municipality, both policymakers, management and representatives have to be committed Only a limited number of topics are suitable for this instrument.

But don’t leave yet! Investors are really interested, and help us to spend our money more efficient. New partners generate new insights Financial risks are put on the market: SIB is real pay for success. Helps to set priorities in times like these. SIB will generate more innovation, especially in cities! Possible topics:

Any questions? Questions to me? And my question to you: what topic for a SIB can you think of?