Paper presented at Clinton Global Initiative
ARLINGTON, VA -- Findings from a research paper on Social Impact Bonds, co-authored by Michele Smith, Director of Strategic Analytics at Child Care Aware® of America, will be presented at the Institute for Child Success seminar Early Childhood Social Impact Finance: Possibilities and Challenges on June 25 in Washington, D.C.
Also known as 'Pay for Success' projects, this financing approach aligns the interests of private and philanthropic investors with the public around social services. This new way of financing social initiatives pays investors only if the program succeeds. Investments are focused on proven, high-impact interventions that create measurable social benefits and save government money.
“This paper demonstrates the kind of thought leadership that is vital to protecting and strengthening smart investments in young children,” said Lynette M. Fraga, Ph.D., Executive Director of Child Care Aware® of America.
Financing Human Capital Development for Economically Disadvantaged Children: Applying Pay for Success Social Impact Finance to Early Child Development, is co-authored by Smith; Robert H. Dugger, Chairman of the ReadyNation Advisory Board and Invest in Kids Working Group; and Janis A. Dubno, Senior Policy Analyst at Voices for Utah Children. Dugger will present at the seminar.
“This paper illustrates how an innovative financing concept can be applied to provide economically disadvantaged children with interventions that could offer a lifetime of benefits,” said Dugger, who presented the paper at the recent Clinton Global Initiative.
Dubno, who will present the paper at a symposium on economics hosted by the Center for Studies in Economics and Finance and the Innocenzo Gasparini Institute for Economic Research in Capri, Italy next week said, “In Salt Lake City, we're moving forward. The Pritzker Foundation and Goldman Sachs together are committing $7 million in partnership with the United Way of Salt Lake to implement an actual prekindergarten pay for success project. In the first year, 450 children will come off the wait list and be placed into high-quality Pre-K in Salt Lake’s Granite School District.”
Smith said, “This type of finance has already been applied to other social interventions for chronic homelessness in Massachusetts and juvenile incarceration in New York City. Given that interventions with disadvantaged children have much higher economic returns the earlier they occur in a child’s lifecycle, we thought it would be important to explore how pay for success could be applied in early childhood education.”
Child Care Aware® of America is our nation's leading voice for child care. We work with state and local Child Care Resource and Referral agencies and other partners to ensure that all families have access to high quality, affordable child care. We lead projects that increase the quality and availability of child care, offer comprehensive training to child care professionals, undertake nationally recognized research and advocate child care policies that improve the lives of children and families. Learn more at www.usa.childcareaware.org.