The Development of Social Impact Finance and the Post-COVID-19 Transition

Abstract

This paper investigates new financial instruments within the aggregate of social impact finance, which has developed particularly following COVID-19. The focus is mainly on Social Impact Bonds (SIBs) and the Italian Social Fund. The multi-stakeholder logic of SIBs and social funds is well suited to finance social innovation projects fundamental to revitalizing local communities and urban areas. These new financial instruments can play a crucial role in simplifying the launch of local development processes and placing environmental sustainability and biodiversity as essential variables of the new EU Sustainable Development Strategy.