GS2 · 10 marks · 150 words

Outcome-based finance models such as social impact bonds have the potential to truly catalyse change and deliver socio-economic impact at scale. Discuss.

Answered by 3 toppers · CSE 2023–2025

Policy Design and ImplementationNGOs, SHGs and Civil SocietyTransparency and AccountabilityWelfare Schemes

Syllabus: Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

How toppers approached it

From 2 of the 3 answers · about 200 words.

Opening

  • A definition1 of 2
  • No separate opening1 of 2

Body

  • Points2 of 2

Close

  • A summary1 of 2
  • A way forward1 of 2

The toppers’ answers

Aditya SrivastavaAIR 1 · CSE 2023 · 30 wordsTheir whole copy

Opening

Social Impact bonds provide returns based on the outcomes of the scheme in which invested.

Body

Diagram
- Have potential to revolutionize -> bring outcome based budgeting -> promote social impact rather than just huge targets -> promote the values of welfare State (Article 38) -> lead to better fund utilization & fiscal discipline

However there are challenges -

Diagram
- Challenges -> low rate of return of low investment -> lack of clear definition of outcomes -> lack of investor confidence due to lack of participation -> top down approach without participation by people - Way ahead -> have a value based approach v define the outcomes and quantity -> promote the discounting & trading of these bonds

Close

This would help to achieve Social welfare via fiscal discipline.

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