Setting up a SIB in Estonia

Lessons learned by the Good Deed Foundation

Joanna Hofman, RAND Europe31 May 2016

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About the SIB Estonia 2015 project

• Implemented by the Good Deed Foundation in Estonia

• Funded by the EC through the EaSI programme in 2014-2015 as one of pilot projects that supported the development of the market for social enterprise finance

• Reported lessons learned to RAND Europe that was tasked to document experiences and share learning among the pilot projects and a wider audience

Insert picture here – to edges

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Project objective and activities

Set up and prepare the successful launch of the first SIB in Estonia in 2015 through:1. Introducing SIBs as a model to private investors and state actors

2. Analysing and comparing existing research on potential applicable problems for SIB in Estonian social policies

3. Analysing the supply side of the SIB

4. Negotiations with interested stakeholders and selecting the problem area

5. Analysing and designing the impact measurement system

6. Disseminating information among suitable social enterprises

7. Preparing legal documents and frameworks

8. Signing the agreements to set up the SIB

9. Disseminating information

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Reoffending among adolescence

• Age group: 14-17 year olds• Intervention: Aggression

Replacement Training (ART)

Figure 1: ART logic model

Source: GDF (2015b) adapted from EPIS Center (n.d.)

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Seven critical areas where lessons were learned and shared (credits: GDF)

1. Mapping and selecting a problem area for SIBs:– Availability of data required

– Implementation of a model that falls under competencies of multiple actors

2. Mapping interventions:– Risk appetite (preference for evidence-based interventions over experimentation

among state actors)

– Exit strategy (sustaining the intervention and its quality after the SIB contract ends)

3. Mapping and selecting service providers– Timing the launch of a SIB in the market with a limited number of eligible service

providers (simultaneous implementation of EU-funded projects/programmes)

– Experience in impact measurement

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Cont. (credits: GDF)

4. Mapping investors– Low investment volumes

– High risk awareness

5. Impact framework– Creating a detailed protocol for impact measurement

– Establishing target levels (for reduction of reoffending)

– The cost of impact measurement

6. Legal framework– Multi-year budgetary commitments for state actors

– Early development of legal framework and preparation of a public procurement procedure

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Sources / credits:

• GDF (2015a). Final technical implementation report

• GDF (2015b). Feasibility study on implementing Social Impact Bonds in Estonia

• EPIS Center (n.d). ART Logic Model. Accessed at: http://www.episcenter.psu.edu/sites/default/files/ebp/ART_Logic_Model.pdf (01.06.2015)

• Tallinn Estonia, photo by TausP. (Creative Commons)

• Don´t let it happen again, photo by Pablo Fernández (Creative Commons)