Purpose
The purpose of the SIB model is to generate costsavings
for a government, focus on outcomes rather
than inputs or outputs, and reduce political and financial
risk. SIBs were created to alleviate high governmental
spending associated with social problems [5]. For
example, over the past few decades, the government has
devoted a considerable sum to alleviate homelessness,
reduce prison recidivism, and increase job placement.
However, government agencies often struggle to find
ways of spending these funds that actually make an
impact. Even when innovative best practices exist to
address these social problems, government agencies and
non-profit contractors are often slow to adopt them.
The biggest motivator for governments to implement
SIBs is the potential for cost-savings. Governments will
analyze the SIBs before they are implemented to see if
there may be some benefit for these programs. Where
the savings are seen depend solely on the type of SIB. For
example, if there is a health-related SIB, this may create