...why doesn't anyone issue them? After all, it is 15 years since I first presented the bond concept in a public forum. I have since given talks about it to numerous audiences; I have published articles, papers and books on the subject. I have spoken to senior politicians, economists and officials. Yet to my knowledge, not a single body has yet issued Social Policy Bonds for any social or environmental objective.
Initially I thought governments would be most interested in the bonds. They spend vast sums of money - around 40 per cent of national incomes - on social and environmental activities, so you might imagine, as I did, that they would be keen to try out any idea that could make their spending more cost-effective. I was probably naive. Governments, I now believe, are quite happy to pursue failed policies as long as these policies have been done before. Supporting a failed but conventional policy less risky to the aspiring politician or bureaucrat than supporting a new policy, even one that is far more likely to succeed. This is what happens when the people in government, invariably (in my experience) well-meaning and hard-working, are rewarded for carrying out activities rather than for achieving outcomes. Provided their programmes have been tried before, their careers are unlikely to suffer.
What about the private sector? I have tried to interest various philanthropic organisations, but not a single one has had the courtesy even to respond to my initial approach. Think-tanks and non-governmental organisations have been more forthcoming, and I have spoken to some of them and they have published my work. None, though, has taken the idea further. I suspect this is because Social Policy Bonds are a 'right wing' (market) way of achieving 'left wing' (social) goals. The right wing doesn't like any sort of intervention, while left wingers see the word 'markets' and run a mile. This is pure speculation on my part, of course.
I am, though, heartened by individuals who have seriously considered issuing their own Social Policy Bond issues for goals as diverse as open source software completion, voter registration and literacy in India and Pakistan. So far none of these has come to fruition, but I am hopeful that they might. If you are interested in issuing Social Policy Bonds for any social or environmental goal please leave a comment or email me directly via the address in my profile.
1 comment:
Observation ... most senior gov bureaucrats are in their 50s (if not older) and are the least likely to rock the policy boat if they want to reach retirement age with their cushy golden handshake. I refer you to Peter Drucker's observation (see http://www.context.org/ICLIB/IC32/Drucker.htm) that *NO* US government social program has worked (with one exception). The political landscape means that it is easier starting a *NEW* initiative (with associated horn-blowing) than to audit past efforts (which would unduly embarass the incumbant or even worse, cast the opposition in a good light).
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