The Development of Social Impact Finance and the Post-COVID-19 Transition

Abstract

This paper investigates new financial instruments within the aggregate of social impact finance, which has developed particularly following Covid-19. In particular, the focus is on Social Impact Bonds (SIBs) and the Italian Social Fund. The multi-stakeholder logic of SIBs and Social Fund are well suited to finance social innovation projects that are fundamental for revitalizing local communities and urban areas. These new financial instruments can play a crucial role in simplifying the launch of local development processes and placing environmental sustainability and biodiversity as crucial variables of the new EU Sustainable Development Strategy.