Social Impact Bonds in the context of the reform of the public procurement law: Challenges and opportunities Guillermo Rodrigo Corredor Castellanos

Abstract

The decline of State's capacity to finance solutions to social problems has become a common problem in a context signed by a global economic downturn and de-industrialization processes. To overcome this situation, the private sector and the so-called 'social sector' have been involved in the creation of novel financing mechanisms. The Social Impact Bonds are part of these innovations that could contribute to the efficiency and transparency of public spending. Within this scenario, the challenge for those who promote these innovative tools seems to be to achieve effective transformation of those rigid contracting models to which are subject public authorities.