This article can be found in the current issue of the Journal of Urban Affairs regarding Social Impact Bonds and the Urban Transformation.
This article currently has free access and is available to read and download.
A fictitious commodification of local development through development impact bonds?, by Juliette Alenda-Demoutiez
For a video resources provided by the author please click here!
This article explores the dynamics of an emerging innovation, the development impact bond (DIB), a contract established among several actors with a development objective. Because there has been limited exploration and questioning of the ideologies behind the DIB, the aim here is to address this issue. This work, based on a literature review, is a contribution to understanding DIBs in the specific context of developing countries but, more generally, the financialization of social initiatives and the implication for the governance of local scales. I show that DIBs can be thought of as “fictitious commodities” exchanged within private–private partnerships. If the local states become a key component of the new modes of local regulation, favoring the supranational and subnational scales, local authorities are not involved in DIBs. The evolution of welfare as a development, through the question of this local scale, with the growing involvement of the private sector is therefore of great importance.