Don't rely on government to sort things out, nor to be the first to target outcomes as a policy priority, as against staying in power and disbursing funding to favourite lobby groups. Who in the private sector might be interested in privately issued Social Policy Bonds, and why?
- Philanthropists and others who are cash-rich but time-poor and have high ideals that can be expressed as quantifiable social and environmental objectives. They could collaborate and issue their own Social Policy Bonds, setting up an escrow account for funds to redeem them. Less wealthy people – ordinary members of the public – could be asked to swell this account by depositing their contributions into it. Philanthropists and their organizations, without exception, resolutely ignore my emails, but one lives in hope.
- Organizations in the private sector already involved in trying to achieve the targeted objective. They could seek funding from holders of the relevant Social Policy Bonds, who, if they believe these organizations’ activities are efficient will find it worthwhile to help finance their existing projects.
- People could set up new organizations specifically to buy the bonds, work towards the targeted objective, and sell their bonds once they have risen in value.