Appendix A provides more details into the structure of three example SIBs: The Higashiomi City Pilot SIB, Colorectal Cancer screening in Hiroshima Prefecture SIB, and Smoking Cessation Support Project for Smokers Living and Working in Toyonaka City SIB. Out of the eight SIBs SIIF has been involved in, four were fully redeemed, while four did not meet expectations. Regardless of outcome, these experiences were invaluable for SIIF’s growth and learning. The pilots underscored critical elements that would shape their approach to future investments, particularly the importance of strong community engagement and clearly defined metrics for success. SIIF conducted evaluations of these SIB programs, extracting lessons from both successes and failures. For example, in the Okayama City Health Promotion SIB, targets were not met due to overly ambitious goals—three times higher than the previous SIB— and the impacts of COVID-19. Additionally, knowledge transfer proved difficult during government transitions over the five-year period. These findings highlighted the need for future deals to include contingency plans for unexpected events and strategies for preserving institutional knowledge within partnerships. Each SIB was an opportunity to test how SIIF could operate within the broader impact ecosystem, refining their methods while navigating the complexities of aligning financial and social outcomes. What did the team learn from this innovation? One key takeaway was the difficulty of changing existing administrative methods and budgeting processes within government systems. As Michiru Toda pointed out, “Given the constraints of current administrative structures, it may be more effective to prioritize impact measurement, evaluation, and decision-making within governmental projects, rather than insisting on fully implementing a Social Impact Bond (SIB) model.” 24 Dormant Accounts Japan’s Dormant Deposits Utilization Act, which came into effect in 2018, also mirrors the UK’s Big Society Capital model. The policy allows for funds from long-unused bank accounts to be repurposed for public benefit projects. This fund became an invaluable tool, unlocking a hidden pool of resources that had the power to address Japan’s pressing social issues. By redirecting these funds towards community-level projects and social enterprises, dormant account utilization could help localized initiatives gain the financial support they needed to scale their impact.
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Ten Years in the Making
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