making impact real - The Young Foundation

and on data and insight collected through semi-structured interviews with ... the social consequences of the global financial crash; growing divergence ... contraction in the consumption of goods and the overall demand, slowing the recovery process. .... investment to hard infrastructure; for instance by ensuring that impact ...
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MAKING IMPACT REAL Encouraging investment into social infrastructure and public good to stimulate the European economy Fiorenza Lipparini, Seva Phillips, Filippo Addarii, Indy Johar / April 2015 oih

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Contents Executive summary ................................................................................................................................. 4 Chapter 1 – Setting the scene: inclusive economic growth ................................................................... 5 1.1 Growing inequality and its economic impact ................................................................................ 5 1.2 The European context and the new European Commission Investment Plan ................................ 7 1.2.1 The European context .............................................................................................................. 7 1.2.2 The opportunity of the European Fund for Strategic Investments .......................................... 8 Chapter 2 – Private capital for social investment and investment in the public good: why (and how) it works..................................................................................................................................................... 11 2.1 Social investment ........................................................................................................................ 11 2.1.1 The consequences of inadequate social investment ........................................................... 11 2.1.2 Specific social investment policies and their macroeconomic implications ..................... 12 2.1.3 Private capital in social investment ..................................................................................... 14 2.2 Investment in public good........................................................................................................... 15 2.2.1 The case for public good investment .................................................................................... 15 2.2.2 Public good investment in practice...................................................................................... 15 Chapter 3 – Investment in systemic social innovation ........................................................................ 19 3.1 The partnership of public, private and third sector..................................................................... 19 3.2 A typology of social innovation................................................................................................... 21 3.3 Systemic social innovation in practice ...................................................................................... 22 Conclusions .......................................................................................................................................... 25 Recommendations............................................................................................................................ 26 Appendix 1 - EU countries’ social expenditure and share of social investment ................................... 28 Appendix 2 - The EU impact-finance market: Germany, Italy, France and Poland ................................. 31 Appendix 3 - The role of government in catalysing impact investing: the UK case .............................. 33 References............................................................................................................................................ 46

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Acknowledgements and Methodological note The present study, sponsored by Unisalute – Unipol Group, was based on a wide bibliographic review and on data and insight collected through semi-structured interviews with members of the Advisory Board and expert practitioners. Our gratitude goes to all the interviewees and experts, listed here below: Members of the Advisory Board: Gwendolyn Carpenter (Danish Institute of Technology); Fiammetta Fabris (UniSalute – Unipol Group); Chris Handy (Accord Group); Giovanna Melandri (Human Foundation); Heather Roy (Social Platform); Simon Ro