Social Impact Bonds: An Innovative Mechanism of Funding for Social Problems in Developing Countries

Abstract

In today’s complex world the government resources and charitable donations are insufficient to address the world’s social problems. An impact investment offers a new alternative for channeling private capital for social benefit .Social Impact Bonds (SIB) an innovative financial instrument which facilitates fund flows to address major social problems. It is a public-private partnership that drives government resources toward social programmes.