Impact Policy Tracker Policy

Ministry of Justice SIB Pilot



Launched in 2021, the Ministry of Justice SIB in Japan aims to support juvenile training school parolees who wish to pursue further education, a group that faces significant barriers such as low school acceptance rates, lack of formal educational support, and difficult family or academic backgrounds. The initiative seeks to build academic skills and foster independent study, ultimately improving reintegration outcomes and reducing recidivism.

It is commissioned by Japan’s Ministry of Justice, with services delivered by leading education providers such as Kumon, Kizuki, and Mofumofu Net, and financed by investors including the Development Bank of Japan. Outcome metrics focus on short-term recidivism reduction and individual progress against tailored learning plans.

Highlights

  • Government leadership: Japan’s national government has shown a strong commitment to results-based approaches, embedding Pay-for-Success (PFS) mechanisms and SIBs in key policy strategies since 2016. As of March 2022, 82 government agencies had adopted PFS models, with the number of projects expected to grow to 138 by 2023.

  • Multi-stakeholder collaboration and knowledge sharing: The SIB ecosystem in Japan (including the secretariat organisation of GSG Impact’s NP in Japan, SIIF) benefits from broad collaboration across sectors. A study group led by Social Value Japan, SIIF, and the Development Bank of Japan brought together over 250 participants, including five ministries, 13 local governments, and several financial institutionsn to promote awareness around the value of building a proper market to deliver SIB/PFS.

  • Cultural alignment and adaptive implementation: In Japan’s risk-averse institutional context, the role of commissioners, such as the Ministry of Justice in this case, is critical in shaping collaboration and ensuring progress. Their leadership in the juvenile parolee SIB reflects the principle of Kaizen (continuous improvement), enabling iterative learning, alignment among diverse stakeholders, and gradual uptake of innovative funding models.

Government’s Role:
Market Participant


Country:
Japan

Policy Type:
Outcomes partnerships

Year: 2021

Responsible Institution:
Department of the Treasury

Outcomes partnerships

What are outcomes partnerships?

Outcomes partnerships are innovative funding mechanisms that link payments to the achievement of measurable social or environmental outcomes, rather than to the delivery of predefined services. They typically involve three core parties: a government or public entity acting as the outcome payer, a service provider delivering the intervention, and a third-party investor supplying upfront repayable finance. The investor is repaid, partially or fully, only if the agreed outcomes are achieved. This structure shifts financial risk away from the public sector, encourages performance-based service delivery, and enables more flexible, adaptive approaches to addressing complex social challenges. It underpins instruments such as Social Impact Bonds (SIBs), Development Impact Bonds (DIBs), Career Impact Bonds, and outcome funds.

Outcomes partnerships have emerged from pioneering efforts in the UK and were developed in response to the limits of traditional, one-size-fits-all service delivery, especially in sectors like health, education, and employment. They have helped improve public sector effectiveness (delivering up to 9x of public value for every $1 invested), mobilise private investment for the public good, and strengthen performance management through learning and adaptation. Outcomes partnerships rest on three key principles: 1) collaborative design, where stakeholders co-create shared goals; 2) flexible delivery, allowing for real-time learning and local adaptation; and 3) clear accountability, with transparent reporting on tangible, person-centred outcomes.

For more information, visit GSG Impact’s reports, Shifting Gears - Challenges in scaling outcomes partnerships in government and strategies for success and Tying funding to results, and Oxford University’s Government Outcomes Lab website and its latest report “The evolution of social outcomes partnerships in the UK”.