Response: The Payoff of Pay-for-Success

Fellow Mark T. Fliegauf responds to Harvard Business School’s Kasturi Rangan and Lisa Chase in the Stanford Social Innovation Review and argues that Social Impact Bonds and Pay-for-Success contracts encourage governments to spend more money – more wisely — on social programs:

In their insightful article, “The Payoff of Pay-For-Success,” Kasturi Rangan and Lisa Chase highlight the promise and potential pitfalls of an emerging trend in government procurement: pay-for-success contracts (PFS), and more specifically, social impact bonds (SIBs). While their analysis is confined to PFS and SIB contracts in the United States, their conclusions are applicable beyond North America...