Today the Manitoba government announced the opening of a request for proposals for Social Impact Bonds, a scheme in which private companies profit off social service delivery.
“There was a time when the private sector would simply make philanthropic donations as part of their corporate responsibility to the community” says Terry Egan, President of CUPE Manitoba. “Social Impact Bonds take that corporate philanthropy and turn it into a private money-making scheme”.
While Pallister claims that Social Impact Bonds would foster “private-sector innovation,” these companies will seek to invest in only the non-government agencies that would see profitable outcomes, rather than programs that seek to address long-term root causes of many of societies deep and complex issues, including poverty.
“Social Impact Bonds are like P3s, for social services. We have the in-house expertise we need to deliver social services right here in Manitoba,” said Egan. “There’s no need to outsource the financing, planning and evaluation of social programs to consultants and corporations”.
For more information on Social Impact Bonds, see these helpful links:
Profiting form children: a child care social impact bond in Chicago
CUPE Table Talk: Social Impact Bonds: The next horizon of provatization
CUPE Economy at Work: Economics 101 – Decoding Social Impact Bonds