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This presentation describes Social Life's work with the City of Malmö's Environment Department to develop a new placemaking model that can be funded by social investment. This work is part of the City's "Regeneration Dialogue", which aims to comprehensively regenerate the City's 1960's and 1970's apartment blocks. The work is part of the Social Life of Cities collaborative - a global innovation program run in partnership with Cisco and the Young Foundation. This presentation was made at a TelePresence bringing together experts in social investment and placemaking from Sydney, London, New York, Malmo and Brussels.
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New finance for regenerating MalmöOctober 2013
Social Life’s aim is to put people at the heart of placemaking, we work in the UK and internationally.
The Social Life of Cities
A partnership between Cisco, Social Life and the Young Foundation.
Our aspiration is to accelerate urban innovation and reshape the way that city leaders and urban planners think about creating and shaping thriving and sustainable places.
With the City of Malmö we are developing a new placemaking model for their “million homes areas”, and exploring how this can be supported by new sources of finance.
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Our first TelePresence, September 26th
Placemaking for disadvantaged housing estates in Malmö
Social investment in places: this presentation
1 Introducing Malmö
2 Introducing Lindängen and the placemaking model
4 Financing placemaking
5 Meeting the need for investment
6 Our questions
Building on the best of what we know about making places thrive; and the best of what we know about innovation to meet social need in local areas.
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1 Introducing Malmö
MalmöStrong links to Denmark & Europe
Over 40% of population first or second generation immigrants
Highest child poverty level out of all Swedish municipalities
Lower employment and higher welfare dependency than most of Sweden.
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1 Prompts
2 Proposals
3 Prototypes
4 Sustaining5 Scaling
6 Systemic change
Disengaged communities, poor education, high levels of disadvantage
Consensus about need for new approach
Data/studies on social need
External inspiration, social design principles, co-design solutions with participants
Learn from success of environmental sustainability programmes
Malmo is famous for innovative
sustainable design, but
also for urban problems
Malmö’s innovation story
3 Introducing Lindängen & the placemaking model
Over 1 million apartments built in Sweden 1965-75, a third of apartments in existence today were built in this period
Lindängen
Lindängen:Employment
(2009)
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Population
% p
opulation in
work
Lindängen: working age population,
actual & trends
until 2015
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Lindängen: number of
pupils leaving elementary school with
qualifications2007-2011
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Centru
m
Södr
a In
ners
tade
n
Västra
Inne
rsta
den
Limha
mn-
Bunke
flo
Hyllie
Fosie
Oxie
Rosen
gård
Husie
Kirseb
erg
Malm
ö to
talt
0
10
20
30
40
50
60
Year 2003*
Year 2011***
Lindängen:Change in
numbers of people saying
they feel unsafe
outside in the evening
2003-2011
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How can we put people in the centre of placemaking in Lindängen?
What we know …
New Deal for Communities England (2000 – 10)
Promise Neighbourhoods, US (2010 on)
Communities that care, US & UK (early ‘90s on)
Four key learning points1. Build the capacity of
individuals and - their wellbeing, resilience and – as well as tackling deficits
2. How people feel about places – their attachment – is critical
3. Building on the assets of local communities – and take time to identify these
4. Avoid silos & over rigid processes.
Knight Foundation, Soul of the Community, US (2010 on)
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Ideation cycles
Feedback loops between stages
A placemaking model for Malmö: the starting point
An incremental model based on what we know about how local areas
innovate18
3 Financing placemaking
Across Malmö, €65,000 investment need per home to meet physical and environmental standards, and to fund programme of social renewal.
€110m investment need for regeneration dialogue in Lindängen.
The costs of disadvantage in LindängenDirect costs for each unemployed adult: €75,000 each year
Income support paid by city (2012): €110 million
350 unemployed (2009) ≈ €26 million/year, €130 million/five years
Two Swedish economists, Ingvar Nilsson and Anders Wadeskog have estimated the costs of social exclusion in Lindängen.
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Nilsson & Wadeskog estimate that a reduction in the costs of social exclusion, equivalent to the €60m needed to comprehensively regenerate Lindängen (without sharp increases in rent), could be generated if 138 people currently dependant on welfare become fully employed for eight years, without needing state support.
Average direct costs for unemployment in Lindängen divided
between agencies
Source: Ingvar Nilsson
Health
Local government
Costs of unemployment
Source: Ingvar Nilsson
4 Meeting the need for investment
What does the City of Malmö want?More investment available in total for deprived areas
To mainstream their new approach
New structures that break down silos and rigid ways of working.
Less than half of the costs – €50m - of the programme can be funded through rent increases - the public sector cannot fill the remaining gap.
Some questionsWho are the potential investors?
Who is the target of a new programme?
How to measure impact?
How to invest in innovation?
… how can savings be cashed?
… how can savings be shared?
Global picture ignores complexity of people’s lives: need to identify the high cost individuals/families, then analyse use of services to find the key intervention points where costs of failure can be released.
?
Institutions: Scandanavian insurance companies, pension fund managers and equity investors who are looking at broadening their base eg SBP (Norwegian owned pension fund), Skandia, Swedbank
Public sector City of Malmö: regional health trust and national employment agencies, other national actors
Property owners
Crowdfunding
1 Who are the potential investors?
138 people no longer dependent on state welfare programmes
NOTE: all the figures are hypothetical
138 people have families and broader social connections…
2 Who are the target group?
138 people no longer dependent on state welfare programmes
Wha
t are
the
inte
rven
tions
?Intervention
Intervention
InterventionIntervention
Intervention
Issue #2: who to focus on?2 Who are the target group?
Hard outcomes & outputs: numbers in work, training places, participation rates.
Soft outcomes & outputs: confidence, resilience, sense of purpose, trust, community capacity and cohesion.
138 people no longer dependent on state welfare programmes
How can we measure success?
Issue #2: who to focus on?
Is it possible to build a model with such complex multiple outcomes?Is a focus on a particular group – eg schoools – more realistic? Or on green energy?
2 Who are the target group?
Ideation cycles
Feedback loops between stages
How can a new investment fund be developed to support innovations that will not have an evidence base, or track record?
3 Investing in innovation?
One investment model
Upfront investment
Upfront investment + savings
Pool resources
Time
Investm
ent
3 Investing in innovation?
Need for some initial investment, with further investment part-funded by savings.
Possibilities…#1 New programmes/initiatives, supported by social
investment (acting as traditional investors or providing working capital)
#2 Payment by results with up front costs funded through social investment
#3 Social impact bond/pay for success bond
#5 Creation of new innovation fund to support new programme of action, part funded by public sector & investors?
5 Our questions
What should be the balance between small and large scale; simple and complex?
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Is small, and incremental the best strategy to engage new forms of investment, or is starting at scale better?
Is a SIB/Pay for Success model over ambitious, or could the complexity and difficulty starting this be outweighed by real benefits in the long term?
What advice would you give to Malmö?
