World Economic Forum released the Global Risk Report earlier this year which showcased a list of challenges being faced. Climate Change is damaging the environment and the failure to save the environment is a big danger where the COVID-19 pandemic has already taken more than two million lives all over the world. The outbreak of this disease has increased many other societal risks like poverty which endangers the economy.
The global problems can’t be met with complacency or just in monetary terms. What is needed is sustainable, bold community-based, and comprehensive approaches with the far-sighted results which are much needed now.
The global risks can also be met with social innovation and social finance which is a long-term solution.
These two solutions also give the economy ‘Triple play’ i.e. creations of jobs, mobilizing, and investing in jobs while addressing social inequalities and environmental degradation.
Social innovation refers to develop the out of box solutions to collective problems while also supporting social progress.
On the other hand, social finance is a tool that enables social innovation. It is the approach of investing which gives social and environmental benefits, mobilizing private and philanthropic capital with social finance intermediaries for the good of the public.