Позитивные изменения. Том 2, №4 (2022). Positive changes. Volume 2, Issue 4 (2022)

Foreign projects usually have several investors — a sample analysis has shown that about a quarter of all projects have a single investor (including that combining the finances of several persons), about a third of projects have 2–3 investors, and more in the rest of the cases (up to 9 investors in one project). In Russian practice, all projects have a single investor (project organizer, according to the Russian law). The development of tools aimed at the participation of several investors in one project can help to attract new investors and increase the potential volume of investment. Investor involvement can also be synchronized with the corporations' ESG agenda, given the direct focus of social impact projects on the assessment of social effects (for example, the presence of a direct measurable social effect is one of the key principles of VEB.RF's ESG strategy[57]).

Analyzing foreign practice, it is worth noting the presence of investors regularly contributing to SIB projects. Analysis of the Impact Bond Dataset showed that there are more than 20 investors (from the available list of more than 360 organizations) who have invested in 10 different projects or more. These include social/impact and charitable foundations (e.g., Big Society Capital, with 38 projects), as well as major banks (BNP Paribas, Deutsche Bank), pension funds and insurance organizations.

The average project implementation time in Russia is also different from other countries — 31 months on average (from 18 up to 40 months), compared to 48 months abroad[58]. The increase in project duration can increase the costs of project implementation in terms of subsidy payment to the organizer (investor) if the social effect is achieved, and increases the project risks for all participants. The feasibility of implementing longer projects in the Russian practice requires additional analysis of the pros and cons.

Another peculiarity of the Russian approach is the launch of unique projects that test various technologies and mechanisms of work in the social sphere for further scaling. This goes against the foreign (mainly Western) practice, where similar projects are commonly implemented in different locations; that is, the best practices are replicated. For example, of the 9 projects launched in Portugal in 20202021, 5 are called “Digital school MUDA” and 2 are dedicated to digital literacy in schools (Digital Literacy Schools for the Future). In Russia, for example, there is a practice of launching three projects aimed at the development of assisted living (in the Republic of Sakha (Yakutia), Chelyabinsk Region, Khabarovsk Krai), with different project parameters and implementation features (for example, each project has unique social effects), taking into account the specifics and strategic development objectives of each territory. On the one hand, replication generates statistics on the implementation of similar projects, which allows potential investors to assess the risks of a project and decide whether they want to be involved. On the other hand, the main idea of social impact projects is the uniqueness of the practice tested, which in the future can be scaled to give a multiplier effect.

The Russian approach to SIB implementation corresponds to the model typical of Asian countries. There are a series of publications dedicated to the potential of SIB development, under the common title SIB 2.0[59]. The Russian and Asian approaches are geared toward the existing bureaucratic mechanisms in a country with high state social expenditures and focus on “greasing the mechanism” (i.e., fine-tuning) for effect when scaling best practices, rather than launching small, hard-to-scale projects that emphasize monetary benefits[60].

SUMMARY OF THE RESULTS AS OF THE END OF 2022

The results achieved by social impact projects as of the end of 2022 laid the foundation for the development of the tool and the launch of new projects. We can already talk about the constituent entities of the Russian Federation growing the appetite for the implementation of social impact projects. The successful project launch practice is accumulated, cases are built based on the projects completed, and independent evaluation and scaling practices are established.

The accumulated experience, including that of VEB.RF as the operator of 10 SIPs, will make it possible to develop detailed methodological guidelines for the implementation of social impact projects. To develop the instrument and attract new investors, support measures can be elaborated to reduce the risks for investors. To introduce support measures, it is advisable to conduct a detailed analysis of the social and economic effects of the projects. Key growth points:

• availability of successfully completed projects that have been evaluated and confirmed the achievement of social effects, and are being scaled up;