Yakutia will become the first region where the Social Impact Bond (SIB) project is actually implemented [social impact bond is a financial instrument that allows to attract private capital into the non-profit sector and ties the income to achievements in solving social problems, – Ed.]. <…> We have chosen a pilot district with 25 schools and 5,000 students. Over the course of the next three years together with our colleagues from the Higher School of Economics we are going to test all best practices and technologies and try to find the practices that were born here, in our soil, and let them grow. For this purpose, the Far East Development Fund is allocating funds for the period of three years, and in case there is social impact we, as a region, are willing to fully reimburse all expenses — Vladimir Solodov, Chairman of the Government of the Republic of Sakha (Yakutia).
The key element of SIB is that we transfer the risk of project implementation from the state to the business: we use private investments rather than budget funds, and we focus on the result that we are achieving. If the goal is achieved, the state compensates expenses and remunerations to investors — Svetlana Yachevskaya, Deputy Chairman of the Management Board – Member of the Management Board, State Development Corporation "VEB.RF".
There are social impact projects, those SIBs, that catalyse investments and participation in social projects — Ewa Konczal, Central and Eastern Europe (CEE) Manager, The European Venture Philanthropy Association (EVPA).
I think that the future lies in SIBs, as well as direct and individual impact investing. <…> It is impossible to efficiently change the situation in the country exclusively with charity or business. What is going on now is one of the most important steps towards a new system of solving social problems — Evgenia Telitsyna, Executive Director, Reach for Change Foundation Supporting Social Initiatives for Children .