Defining social investment, Kiwi-style

Abstract

Investment is applying resources today in the expectation of earning a return tomorrow. We define social investment as “a programme funded by the Government that entails applying resources today in the expectation that a measurable improvement in a dimension of policy interest will result at some point in the future”. New Zealand isn’t the only country using a social investment approach but while many approaches to social investment have been developed, social investment as practiced in Europe (where it is most predominant) presents some consistent themes. In general, it is applied very widely across the government’s activities, encompassing issues and themes such as gender equality, knowledge economy, youth unemployment and income redistribution. Since the early 1930s, successive New Zealand governments have based social policy on the idea that the state could provide for the basic needs of families through uniform approaches. Basic needs could be met with universal programmes. This approach has however not proven successful in addressing the needs of and providing equality of opportunities for New Zealand’s most vulnerable.