Social Impact Bonds and Public Accountability: A Systematic Review of Empirical Research

Abstract

Social Impact Bonds (SIBs) have emerged as an innovative financing mechanism in public service delivery, linking private investment to measurable social outcomes. This systematic literature review synthesizes empirical research published between 2020 and 2023 to examine the implications of SIBs for public accountability. While SIBs can promote performance-based outcomes and evidence informed policymaking, the analysis identifies critical challenges related to transparency, controllability, responsiveness, and liability. The involvement of multiple stakeholders and complex contractual arrangements may obscure decision-making, limit oversight, and constrain the flexibility of service providers. The findings highlight the importance of careful design and implementation to balance private investment incentives with robust accountability mechanisms. This review provides insights for policymakers and practitioners seeking to leverage SIBs effectively while safeguarding public interests.