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Rethinking welfare between development and social innovation: the role of banking foundations

Banking foundations are applying to play a role in the review of welfare through a new public-private partnership that aims to prevent hardship and inequality - An initiative by the Ente Cassa di Risparmio di Firenze for collective governance between institutions local and third sector

Rethinking welfare between development and social innovation: the role of banking foundations

It's time for a profound review of the welfare state as we knew it in the 900s. The debate is in full swing and the Renzi government is proposing a reform of the labor market which should be the first important step in a change towards a more equitable system and more sufficient. All available resources, in a time of serious public finance crisis, the most serious since the war, are necessary to hit the objectives of building an efficient safety net for the weakest categories and in this context also the Foundations of banking origin they feel the duty to play a more effective role than in the past.

In essence, it is a question of moving from a distribution of contributions aimed at the individual requesting subject and the quality of his project, to a broader strategy where the banking institutions take the initiative in choices agreed and coordinated with the institutions and players operating on the territory. The watchword is "collective governance" of welfare and it was launched on Wednesday by the president of the Ente Cassa di Risparmio di Firenze during a meeting-debate entitled "Development and social innovation: new possible paths". Collective governance simply means "networking" between local institutions and the third sector to identify development paths in the interest of the community, each maintaining its autonomy.

It is a renewed public-private partnership which together elaborate and implement a "new community management model", therefore from now on we will have to speak of "community welfare" or Social Welfare. From the point of view of methodology, the system will have to be "preventive", that is, it will have to aim at preventing discomfort and inequality. From that of the sectors, training leaps to first place because "the first engine of the reduction of inequality is training, that is, investment in human capital".

The presence, aware and determined, of foundations of banking origin (300 million are destined each year in Tuscany for the territory) obviously works as a lever for attracting foreign investments and loans in the social field, as could be for example the agreement with the Robin Hood Foundation of New York. It is the microeconomic analyzes conducted on the territory that support this new network pact for welfare. From the survey on social services conducted by Paola Garrone, professor at the Milan Polytechnic and vice president of the Foundation for Subsidiarity, convincing ideas have been drawn for starting a fruitful collaboration between public assistance and third sector companies.

Starting from an analysis of the costs of those who offer the services, namely some important public bodies (such as Trivulzio) and some private companies, it can be seen that while in the provision of the service (such as a bed) the difference in costs is almost negligible, in the back office (general activities, administration, etc.) the weight of the public is much higher: these costs account for 22% of the total, while in private companies the share is 13%. The research is an example of the need for the "welfare society", innovation in the social security system, to start from a good and in-depth collection of data "at the level of individual organizations, not at an aggregate level", in order to be able to start a debate concrete and productive and also to complete a reasoned spending review. Subsidiarity associated with quality is just another name for a supportive society.

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