How is the welfare state diversifying? The process of introducing Social Impact Bonds in Finland

Authors

• Pekka Pennanen Deloitte
• Anu Katainen Helsingin yliopisto
• Jyri Liukko Eläketurvakeskus
• Heikki Hiilamo Helsingin yliopisto

DOI: https://doi.org/10.30668/janus.125048

Abstract

Social policy is often reformed in unexpected and short periods, in 'policy windows'. In the article, we explore the process of promoting Social Impact Bonds (SIBs), as part of a new kind of organisation of welfare services. In the study, we use John Kingdon’s theory of multiple streams. As research material we use expert interviews and parliamentary documents. The method of the article is based on case study analysis. Social Impact Bond began to be promoted in Finland in a person-driven manner. The model gained political support through the activity of individual actors, the political situation, and unexpected events. A key coincidence in promoting Social Impact Bonds was the refugee crisis of 2015, in connection with which it was decided to apply the model in the integration of asylum seekers. The refugee crisis and the political support for the SIB model through personal relationships appear as a 'policy window' of policy measures in which the introduction of the model was made possible. Later developments have shown that the model came to stay in Finland. This article reveals the importance of personal-level connection in changing social policy.