A Responsibility to Profit? Social Impact Bonds as a Form of “Humanitarian Finance”

Recent years have seen the emergence of social impact bonds (SIBs), geared toward funding social interventions while earning financial returns. The article proposes to conceive of SIBs as a practice of contemporary humanitarianism. In an effort to trace the politics of such humanitarian finance, the article analyzes a SIB that sought to improve outcomes for homeless persons in London. It argues that, instead of relying on sentimental stories, the project was animated by a results-oriented, technocratic culture geared at solving social problems (rather than just alleviating suffering). Its mode of reasoning, however, directed attention to highly vulnerable individuals — and away from the structural conditions that perpetuate poverty. But at the same time, the scheme reworked exclusionary constellations “from within.” Thus, such humanitarian finance simultaneously performs a relation of inequality and a relation of assistance. The article makes the case for an ongoing engagement of both dynamics, together.