Social impact bond feasibility study of APAC Portugal - reducing recidivism by increasing ex-convicts´ employability

Abstract

The Portuguese penitentiary system strugglesto prevent recidivism, which results in the increasingly financially unsustainable hyper-incarceration. Therefore, the Free Works Social Impact Bond (SIB)addressing the causes of recidivism instead of symptoms represents an innovative, cost-efficient solution for authorities and investors. APAC Portugal’s program is a preventive, holistic model improving ex-convict’s employability, enabling them to break the vicious crime cycle. It provides repayments of 1,322,371.16€and a 1.3% IRR, given the intervention’s 7.5% reduction in reconviction events. If the suggested improvements regarding recidivism data and the program’s impact are implemented, it is highly recommended to realize the Free Works SIB.