Furthering business efforts to reduce social risk and promote peacebuilding

Given that businesses and governments have an interest in reducing systemic country risk, the purpose of this chapter is to discuss proactive approaches for addressing political and social risk at their source. One way to do so is through public–private partnerships (PPPs). Using PPPs, the public and private sectors can pool resources and expertise to tackle problems that might otherwise go unaddressed. Using two case examples of a new kind of PPP, we analyze the potential for social impact bonds (SIBs), also known as pay-for-performance instruments, to serve as one way for the public and private sectors to work together to improve social and economic conditions in a country.