Engelsk presentation av Bygga om dialogen ("Regeneration dialogue") på BEPA/EU seminarium om innovation i offentlig sektor 9 juli 2013

1. The Regeneration Dialogue
Bild1 Presentation
In the Regeneration Dialoguewe are tryingto develop
businessmodels that combinesolutions to
environmental, socialand economic challenges in
areas where this is most needed.

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The background isthe following; 1965-1975, in a
country of then 7 million inhabitants, Sweden built
650,000new apartments, based on prefabricated
parts. In the total multi-story housingstock this makes
up 33 per cent, almost as high as in the Czech Republic
and Poland.

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In Malmo, a city of 300,000 inhabitants, 30,000
apartmentsof this kind werebuilt.

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Looking outover the EU we find 47 million
apartmentsof this type

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In Sweden as in the rest of the EU these areas are
often characterized by high unemployment rates,
especially amongyoungpeople, and growingrelative
poverty.

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Many of these buildingsare now 40 to 50 yearsold
with huge pent-up investmentneeds. To reach the
climate targets and future-proof thesebuildingsin
Sweden would requireinvestmentof at least €
65,000/apartment= total of € 422 million. In the
whole of EU weare talking of very large sums.

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Weneed investmentstrategy that can create
maximum social and environmentalgains, not least
jobs for youngpeople.

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Webelieve in pilots and prototyping. That is why we
now are concentrating our work in the borough of
Lindängen.
7,000 inhabitants
1,712 apartments
47% employmentlevel
Collaboration with various, property owners

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Together with these landlordswehave made
calculations of investmentsneeded to “futureproof”
their buildings, to ensurethey are still habitable in 40
years. They landed on total investmentsof €110
million in 1700 apartments.

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Half of the total investmentaimed at energy
reductionsof 50%, the rest towardskitchens,
bathrooms, green areas, etc.

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Butinvestmentsof this magnitudewould require
rent-hikes of up to 50%. Notsociably acceptable
because there are no affordablehousing to go to for
peoplebeing pushed out; shantytowns ? For present
tenants to be able to remain in Lindängen wehave
calculated there is a deficit in the investmentbudget
of € 60 million.

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Wedecided to comparethese € 60 million to the
social spendingin Lindängen by the city, health-
service, employment service, nationalinsurance
agency and the judicial system, dueto the low
employmentrate. If you break this down in public
spendingduringoneelection period (4 years) you end
up with a total of € 200 million.

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These costs fall into differentcategories.
Webelieve these costs are in one way or the other
found in every EU-country, especially in EU 15.

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Weput the question to the economist doingour socio-
economic calculations: “How many peopleneed to
movefrom permanentpublicsustenanceto
permanentpersonalsustenanceduringeight yearsto
save € 60 million?”

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And they came up with the followinganswer; That is
one outof 20 in workingage today on public
sustenance.

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You might think social costs are exceptionally high in
Sweden, but they are now actually very close to the EU
15-average. That is why we believe these types of
calculations might be usefulfor many EU-countries.

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This has been a cumbersomeprocess, so why should
we bother to do it? Wesee benefits such as:
Fosters systems thinking and innovation – notleast
in the publicsector
Fosters better use of existing resources –
introducesa social investmentperspectiveon
social spending
Creates a foundation for public/private/third
sector collaboration
Helps create a strategy for smart, sustainable and
inclusivegrowth
Lays the ground-work for areabased impact
investmentthinking

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I will not go into this: but we are in discussionswith a
number of partnerson how to capturepotential
savings in the public sector trough a impact
investmentapproach, maybe tied to a area based fund
for environmentaland social sustainability.

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What we are doingnow:
Peer-reviewingsocio-economic model: tryingto make
them replicable for others
Wideningpilotbase trough partnershipswith EU-
cities interested in developingthe same methodology.
Maybewith cities in the Basque countriesand Croatia
Wealso have an on-going ESF-funded researchproject
for prototypingthese kindsof investmentmodels.
Wehave a continuingdiscussion with EIB
Two international videoconferences in cooperation
with London-based Social Life and Cisco on place
makingand impact iinvestment.
Thank you!