The solutions for socioeconomic development are no longer only in the public sector. Latin America has changed dramatically over the last decade, and the private sector can play an increasingly important role in the region’s progress. That’s where social impact investing comes in—a way that investors can make money while doing social good.
The White House has appointed a social innovation czar and the Inter-American Development Bank is doing work every day in this expanding arena. Is social impact investing one of the keys that will finally unlock the region’s intractable inequality?
In this new Latin America Center analysis, released today, Adrienne Arsht Center Senior Non-Resident Fellow Gabriel Zinny dissects how businesses, governments, and multilateral institutions can better provide goods and services to the underserved while making money.
Read this and key recommendations for accelerating the sector here:
- Formalize it. A clear, market-based legal system enforced by a solid judiciary branch is fundamental to attracting impact investments.
- Seed it. Governments should subsidize a measure of the often-lacking venture-stage capital for projects, especially when the entrepreneurs come from less-affluent communities.
- Decentralize it. Local governments should be viewed as public sector partners as they often have more flexibility to spur private social enterprise.
- Read more here…