On 15-16 May, the Mazovian Centre for Social Policy, a member of the European Social Network (ESN), organised an international conference in Warsaw to present a set of tools to analyse and compare the costs and benefits of action and inaction with regards to various social policy measures. Alfonso Lara Montero from the Secretariat and ESN member Sergio Murillo from Biscay County Council spoke at the meeting.
The costs of inaction
The Calculator of Costs of Inaction (or CCI model) aims to improve effectiveness of decision-making by creating a set of tools that enable an analysis of the costs and benefits of different measures for specific social problems, such as homelessness, unemployment or addictions. The project that has led to the creation of this tool is being managed by ESN member the Mazovian Centre for Social Policy (MCPS) in partnership with the Warsaw School of Economics and the Centre for Entrepreneurship Association in the city of Radom. The project has received co-funding under the European Social Fund and was implemented under the Human Capital Operational Programme 2007-2013.
During the opening of the conference, Ms Barbara Kucharska, MCPS Director, talked about the CCI model and its usefulness: “The creation of this tool was necessary in order to respond to the challenges that we may encounter throughout life that make us vulnerable. The model allows for different types and intensities of social support depending on the severity of the social problem.” The concept of costs of inaction, developed by a research team led by Professor Piotr Bledowski at the Warsaw School of Economics, was essential for the development of the calculator. “This concept points out the future costs that will be incurred as a result of a lack of action in the present”, argued Professor Bledowski, who also reminded the audience that policy making does not take place solely on the basis of evidence, no matter how robust it may be, but politics play a significant role too.
The CCI model has been tested across five municipalities in Mazovia. At the conference, directors of social services spoke of their experience using the model. Some argued that the fact that the calculator gives a figure has an important weight in taking a decision in terms of where to invest in when supporting different user groups, whilst others found the practices catalogue particularly useful. Still for others, training the beneficiaries in order to create a group of local leaders was highlighted as key to achieving change.
Social innovation and social investment
Professor Hochgerner from the Centre for Social Innovation in Vienna (ZSI) introduced the concept of social innovation defined under the four-Is principle – Ideas, Interventions, Implementation and Impact. Professor Hochgerner spoke of a national study commissioned by the Association of Austrian Cities to analyse the potential return on investment if immigrants were to be given jobs according to their qualifications. The study estimated that the economic benefits for the whole country would be €6.5 million, an amount similar to the budgets for all universities in Poland. To date, there has not been any political reaction to the study, according to Professor Hochgerner.
ESN’s Policy Director Alfonso Lara Montero spoke of the links between the concepts of social investment, social innovative practices and evidence. On the basis of ESN’s work in analysing the connections between research, policy and practice in the framework of the Leadership, Performance and Innovation working group, Mr Montero asked: “What do directors of public social services need in order to build decisions based on evidence? They need three types of data: data on needs, data on what works and data on cost-effectiveness. A change in paradigm may take place if we move from measuring only outputs towards measuring risks, as well as looking at ways to transfer practices beyond cultural and local boundaries and estimating the costs of social policy interventions.”
During a panel discussion with academics and practitioners from Poland and abroad, speakers talked about whether investment oriented social policy constituted a new paradigm of the welfare state, what its key elements were and how the long-term effectiveness of social services could be ensured. Asked whether the Calculator of Costs of Inaction would be transferable to other European countries, Alfonso Lara Montero answered: “This is a clear example of social innovation, a tool developed by a public administration for practitioners and in partnership with academics and the third sector. From the start, it has focused on having an impact, that is to say, enabling for the calculation of the costs of inaction versus the costs of different measures to solve specific social problems, which allows for comparison on the basis of evidence. The Calculator will also be presented at ESN’s annual conference in July, thus offering the opportunity to place the tool in various contexts and discuss with colleagues from different countries its transferability across Europe.”
If you would like to know more about this project, you may want to attend the Mazovian Social Policy Centre’s workshop at the 22nd European Social Services Conference taking place in in Rome on 7-9 July.