Social Impact Bond Scheme Spreading among Japan Local Govts
Tokyo, Jan. 25 (Jiji Press)--A growing number of local governments in Japan are turning to a scheme called social impact bond, in which administrative services are outsourced to the private sector and payments are made according to performances.
The SIB system, while curbing fiscal spending, enables administrative bodies to improve the effectiveness of their services by encouraging companies involved to come up with creative ideas.
Companies carrying out projects under the scheme and financial institutions that provide funds for them can earn a profit and at the same time make contributions to resolving social challenges.
SIB started in Britain in 2010. Performances of SIB-related projects are evaluated by third-party organizations.
In Japan, the use of SIB is gradually spreading after it was first introduced in fiscal 2017 in the city of Hachioji, Tokyo, and Kobe, the capital of the western prefecture of Hyogo.
[Copyright The Jiji Press, Ltd.]