Emerging SIBs in Japan and Yokohama Social Impact ... · PDF fileEmerging SIBs in Japan and...

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Emerging SIBs in Japan and Yokohama Social Impact Measurement Pilot Project Ichiro Tsukamoto Professor of public management, School of business Administration, Meiji University, President, Public Management & Social Strategy Institute Inc. [email protected] 22 nd April 2017, Social Impact Forum Yokohama 1

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Emerging SIBs in Japan and Yokohama Social Impact Measurement Pilot Project

Ichiro TsukamotoProfessor of public management,

School of business Administration, Meiji University,

President, Public Management & Social Strategy Institute Inc.

[email protected]

22nd April 2017, Social Impact Forum Yokohama

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OVERVIEW : SOCIAL IMPACT BONDS IN JAPAN(1)

Since 2014, interest in social impact bonds and impact investing has been radically increasing in Japan.

Actually, since April 2015, some local governments and national government departments such as Ministry of Economy, Trade and Industry(METI) have been engaged in pilot experiment projects (Not Bonds) in collaboration with private nonprofit players. The areas of interventions include preventive health care , work integration (NEET), adoption.

➡Experiments: Most cases are Just Foundation Granting or Government Contracting Pilot Projects ) except Yokohama Pilot Project・Yokosuka City-adoption (April 2015-March 2016),

・Fukuoka City and other municipalities –Preventive health care (METI and Kumon)(June 2015-September 2016),

・Amagasaki City-work integration(July 2015-June 2016),

・Yokohama City –Learning and social skills support for children with difficulties in economic conditions and social relations in Families and schools (October 2016--).

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OVERVIEW: SOCIAL IMPACT BONDS IN JAPAN(2)

Cabinet Office has been playing leading role in fostering social impact measurement (evaluation) culture in collaboration with nonprofit organizations, intermediary organizations, private companies, consulting firms and academics.

However, there has been no standardized impact measurement methods and guidance about Payment by Results (PbR) or Outcome based Commissioning.

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FACT FINDINGS FROM THE EARLY STAGE PILOTS: MORE FOCUS ON

INVESTING AND REDUCTION OF GOVERNMENT COST , LESS FOCUS ON

PARTNERSHIPS , CONTRACTS AND PERFORMANCE MANAGEMENT

More Focus on Social Finance , Impact Investing

Less focus on Partnerships (Collective Impact) , Performance based Contracts( Commissioning) and Social Enterprises

Extravagant Advertisement about Fiscal Cost Cutting Impact (Overestimated social benefit ) -No Evidence!

Rather simple outcome metrics (ex. just long-term outcomes, neglected short-term and intermediate outcomes)

Poor Understanding of Performance Management and Collective Impact4

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LEARNING LESSONS FROM EARLY EXPERIMENTS IN JAPAN(1)

Need to show clear logic model and evidence for social and government benefits as results of SIB schemes

➡Need to develop and standardize impact measurements

➡Need to consider demarcations with existing public services

Need to consider transaction cost

Because a SIB scheme has many different stakeholders such as

Investors, government commissioners, service providers and

intermediaries.

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LEARNING LESSONS FROM EARLY EXPERIMENTS IN JAPAN (2)

Need to create new contracting culture (Social Impact oriented contracting) in National and local governments

Need to develop competence for program management and performance management

Need Government –Local Governments collaborative supports for fostering SIB market

Need to develop new public private partnerships in which partners can share value, benefits and risk.

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WHAT DOES YOKOHAMA PILOT PROJECT DIFFER FROM OTHER

EXPERIMENTS IN JAPAN? The first SIB pilot project in Japan which is based at “genuine”

public private partnership

➡Each partner is independent. It means that high transaction cost is

generated .

The first SIB pilot project in Japan which a private commercial bank is involved in

The first SIB pilot project in the field of children learning support in Japan

Most distinct impact measurement oriented project with involving academic institutions in Japan

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OUTLINE OF YOKOHAMA SOCIAL IMPACT MEASUREMENT PILOT PROJECT

Purpose: Providing comprehensive support for children who suffer from economic and social disadvantages based at a community Salon Osan in South Ward, Yokohama City,

Measuring outcomes (changes) in relation to learning and social skills according to the outcome metrics and monetizing social value,

Developing social impact measurement model which can be adapted to future SIB schemes as a standard model.

Duration of the pilot project : October 2016 to March 2018

Site for the operation: Community Salon Osan (South ward , Yokohama City)

Treatment group: Primary and junior high school students who suffer from economic or disadvantage

Activities (interventions): 1. Learning support (Teaching): three days per week,

2. providing opportunities for socializing at Osan including Saturday recreation,

3. providing meals after school

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OUTLINE OF YOKOHAMA SOCIAL IMPACT MEASUREMENT PILOT PROJECT

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2016 2017 March 2018 to

・After competitive tendering (Yokohama City Government announced) , The project was launched in October 2016・The partnership(consortium) iscomposed of Social Welfare Corporation Tasukeai Yui, GoldmanSachs and Public Management & Social Strategy Institute(PMSSI)

・April 2017 to March 2018: The project will be continued. Monitoring and intermediate evaluation will have been conducted. ・January to March 2018: Final evaluation including a an independent third party evaluation will be conducted and outcome metrics, payment model and structure model will be suggested.

Undecided

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. ●YokohamaCity Government

Contracting out impact measurement model development

●Intermediary Organization

Public Management & Social Strategy

Institute(PMSSI)

●Social InvestorGoldman Sachs Japan

*It is not bond or equity but donation

●Service Provider

Social Welfare Corporation Tasukeai

Yui

●BeneficiaryPrimary and Junior

high school students Minami Ward, Osan no

miya area

Commissioning

Yokohama Social Impact Measurement Model Program

Perfo

rmance

and d

ata

m

anagem

ent su

pport ,

impact m

easu

rem

ent

●Independent evaluator

Meiji University Program Evaluation Institute

Com

pre

hensiv

e

serv

ices

Monitoring and evaluation

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LOGIC MODEL: YOKOHAMA SOCIAL IMPACT MODEL PILOT

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■Pro

vidin

g Co

mm

un

ity Space

(third

place

) for so

cializing

■Pro

vidin

g meals fo

r imp

rovin

g life custo

m

■Learnin

g and

social skill Su

pp

ort

Ch

ildren

con

tinu

ou

s particip

ation

in th

e co

mp

rehe

nsive p

rogram

at Co

mm

un

ity Salo

n O

san

Activity OutputShort-term outcomes

Intermediate andlong-term outcomes

Improvement in learning Skills and achievement

Improving basic learning skill

Understanding school lessons

Improving behavior

Improving learning incentive

Increasing learning time in home

Doing homework actively

Improving learningachievement

Improving attendance

Improvement in attitude ,behavior , self esteem

Improving self esteem

Recognizing role model

Improving future prospect

Opportunity to go to higher schools

Improving eating habit

Improving life custom

Providing a third place

Improving social relations

Teachers relations

Friends relations

Community relations

Improving Family relations

Parent relations

Mental health

Lowering caring burden

Improving career prospect

Lowering absenteeism risk

Lowering dropout risk by going to full-time high schools not night schools

Career opportunities by going to full-time high schools

Opportunities for going to universities

Increasing social benefits (government and society)

Decreasing government expenditure related to long absenteeism at schools

Decreasing future publicassistance expenditure

Increasing future tax revenue

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THE EXPERIMENT IN YOKOHAMA JUST STARTING

WE ARE KEEN TO LEARN LESSONS AND KNOWLEDGE FROM SIBS IN THE UK, AUSTRALIA AND THE US. WE ALSO HOPE TO LEARN EACH OTHER AND

SHARE STRATEGIC VIEW AND KNOWLEDGE.

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Primary school students enjoyed cooking OKONOMIYAKI with university students Saturday recreation( 21st January 2017)