16. Social Finance in Developed Markets: Successes and Failures

This chapter delves into the world of social finance, exploring its successes and failures in developed markets. It begins by introducing the concept of social finance and its various tools, such as loans to financially excluded individuals, sustainable credit unions, social impact bonds, and social venture capital. The chapter then examines the role of governments, international organizations, and social banks in promoting social finance, highlighting their successes and challenges. It also provides examples of thriving social banks operating in advanced countries, such as the Charity Bank in the United Kingdom, Triodos Bank in the Netherlands, and Banca Etica in Italy. The chapter then explores the concept of impact investing, focusing on social impact bonds and social venture capital. It provides examples of successful social impact bonds, such as the Peterborough Prison SIB in the United Kingdom and the Aspire SIB in Australia. The chapter also discusses the role of crowdfunding and other impact investments in raising funds for social causes. It concludes by highlighting the challenges and opportunities in the field of social finance and the need for collaboration and innovation to address societal challenges and promote sustainable development.