SF Fed Community Development Investment Review: Pay for Success Financing

Published Monday, April 1, 2013 | by Ian Galloway

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With 39 authors and 22 essays, Volume Nine, Issue One of the Federal reserve Bank of San Francisco's Community Development Investment Review is one of the largest yet. Entirely focused on Pay for Success, the journal is broken down into three sections: Background & Context, Roles & Responsibilities, and Applications & Models. Contributors range from NFF's Kristin Giantris and Bill Pinakiewicz to Annie Donovan and Jonathan Greenblatt of the White House. The journal encompasses a range of perspectives from varied of roles on the PFS continuum, including service providers, government, private investors, and researchers. 

An excerpt from Ian Galloway's (Federal Reserve; issue editor) foreword:

This issue of the Community Development Investment Review attempts to do two things. The first is to serve as a comprehensive resource for the most current thinking on the origins, models, and potential implications of Pay for Success. The second is to encourage readers to weigh its exciting potential against its possible pitfalls. Pay for Success is a tantalizing idea but it raises important questions. Are we privatizing important government services that should remain under public control? How can we accurately measure and enforce “success”? Can we guard against fraud? Can we effectively balance our often-conflicting goals of equity, efficiency, and efficacy? Understanding and answering these, and other, questions is a crucial first step before widespread adoption of Pay for Success tools.