But since the market situation has changed dramatically, one can hardly expect an acceleration of growth and interest in impact investing by market players, since what is needed first and foremost is general economic stabilization.
The market situation has changed dramatically, one can hardly expect an acceleration of growth and interest in impact investing by market players.
According to Sir Ronald Cohen, founder of Social Finance and pioneer of social impact projects worldwide, the SIB model optimizes risks, returns and impact, as return on investment does not depend on the stock market activity but solely on the social impact achieved.
"This gives us hope that the development of impact investing will take place primarily through the development of the SIB model", Tatiana Burmistrova explains.
Alexey Ryzhkov, the founder of Seven Suns Development Group, entrepreneur and social investor, believes that at the moment we can only talk about individual examples of social impact projects or the establishment of such a niche in the market.
"The current model of social structure in the world in general and in our country in particular does not provide for or accept the existence of such a phenomenon as social investment and social investors. It is rather an exception to the rule. The very notion of "social investment" means people acting from surplus rather than deficit; it means the society has confidently reached the level of carrying out independent economic activity; it means the realization that every activity has its social impact in one way or another. And we need to make sure that this impact is positive and constructive, which in turn means that people are ready to take responsibility for society into their own hands. The existence of a large number of people in the society who have crossed this path on their own, allows us to raise the question of the transition to the economy of positive social impact. But this can only work fully if all of the society, that is, the majority of people in the society, have realized these things or at least share an understanding of them. This is a very high development level. Until we as a society have realized this, we can talk about individual examples of social impact projects or about creating a niche in the market that will include various positive social impact projects and enterprises. We need to make this niche a trendsetter in the market of independent economic activity. The world is now experiencing a tectonic shift of global transformation, as President Putin says. Russia has its own role in this process – the role of a crossroads, which should unite the world, first preventing it from self-destruction, acting as an exemplary country – a design of positive, constructive social impact, if you will, then spreading this model to the whole world. We’ll be working on this", Alexey Ryzhkov says.
The SIB model is a long game, which should have its own logic of change and monitoring of intermediate results.
The mechanism of social impact bonds initiated by VEB.RF was included in the Concept for Improving the Efficiency of Budget Expenditures in 2019–2024. Resources, including financial resources spent on social problems, must improve the quality of life of citizens.
According to Tatyana Burmistrova, there is a growing consensus in the society that the focus of paying for public services should shift from ensuring the fulfillment of formal quantitative results to achieving social effects.