efe-epaBuenos Aires

Responsible investments seeking to have a positive impact on society and the environment, as well as producing an acceptable financial return, are the economic recipe to be implemented by Buenos Aires to try and alleviate the problems of youth unemployment in the southern part of the capital.

The formula will be applied in the investment market along with other financial products like investment funds, including Social Impact Bonds (BIS) linking the private and public sectors.

The bonds produce financing to allow development of a program to resolve a significant problem and, in accord with the objectives achieved, the private sector receives a financial return dispensed by the government.

This is the "Social Impact Link" option selected by the Buenos Aires government with the aim of resolving unemployment affecting the 17-24 age group in the capital.

"It's a tool with which we can seek alternative solutions to traditional problems and, as a government, we don't necessarily have to make the initial outlay," Adolfo Diaz Valdez, the head of Strategic Planning for the capital government, told EFE.

Although the criteria and objectives of the program are still being defined, Diaz hopes to collect some $30 million to help some 3,000 young Argentines during the first quarter of 2018.

To date, 15 BIS have been issued in Latin America, according to a report prepared by the Acrux Partner consulting firm.

The region is the fourth-largest target for investment funds around the world and represents 9 percent of the impact investment market, which generates a total of $114 billion worldwide.

Brazil, Mexico, Colombia and Peru are the destinations for most of the investment of this kind, while Paraguay, Argentina, Chile and Uruguay are taking their first steps to enter this market.

The economic crisis that started in 2008 served as a catalyst for different key actors to begin working to create a new and more sustainable economic and financial model.