Tackling marginalisation with a complex approach: the Kiútprogram in Hungary György Molnár and Attila Havas Institute of Economics, CERS-HAS Governance and Relevance: Towards a new generation of research and innovation policies Eu-SPRI Annual Conference, 6-8 June, Paris This project has received funding from the European Union’s Seventh Framework Programme for Research, Technological Development and Demonstration under grant agreement no 613261. This presentation reflects the authors’ views and the European Union is not liable for any use that may be made of the information contained within.

21 November 2018 Motivation Apply the theoretical framework of the Extended Social Grid (ESGM) model in the description of a ‘harsh’ marginalisation process and the reproduction of social exclusion a complex social innovation for the marginalised (SIM), namely a social microcredit programme for the Roma in Hungary Understand the peculiarities of SIM within the wider field of social innovation This project has recieved funding from the European Union's Seventh Framework Programme for research, technological development and demonstration under grant agreement no 613261.

Outline Setting the background 21 November 2018 Outline Setting the background The Roma in Europe Marginalisation of the Roma in Hungary Reproduction of marginalisation, the interplay of social forces Introducing the Kiútprogram ('Way out programme') More details in Molnár (2107) Changes in the programme; interactive learning Theoretical and policy implications through the lens of the Extended Social Grid Model: This project has recieved funding from the European Union's Seventh Framework Programme for research, technological development and demonstration under grant agreement no 613261.

21 November 2018 The Roma in Europe 10-12 millions, mostly in CEE countries and Southern Europe (in Hungary: ≈ 8% of the population) Disadvantaged in almost all aspects of life 80% at risk of poverty (compared to 17%) 60% of young Roma are neither employed nor in education 30% of Roma children go to bed hungry at least once a month 40% meet discrimination (EU FRA survey) This project has recieved funding from the European Union's Seventh Framework Programme for research, technological development and demonstration under grant agreement no 613261.

Process of Roma’s marginalisation in Hungary 21 November 2018 Process of Roma’s marginalisation in Hungary For centuries at the periphery of agrarian societies, with special roles in the division of labour Powerless in every respect Beginning of the 20th century: majority settled down Industrialisation ⇒ traditional Roma products ousted from the market Roma genocide (Pharrajimos) during WWII Limited, distorted integration during the one-party system: mainly unskilled workers, broken traditions Effects of the regime change: economic, political and ideological powers in action mass unemployment, discrimination, moving to underdeveloped areas, spatial and school segregation This project has recieved funding from the European Union's Seventh Framework Programme for research, technological development and demonstration under grant agreement no 613261.

Reproduction of marginalisation 21 November 2018 Reproduction of marginalisation Interactions between institutions and social networks School segregation  prevents formation of inter-community social ties Insufficient school funding  low educational attainment  exclusion from primary labour market + public works schemes  social connections confined to marginalised people Missing weak ties  reduce the chances of finding a job  reinforcing public works system and the distortions in schooling Interactions between institutions and cognitive frames Institutions governing labour market, welfare and workfare system, education, and the rules on setting up businesses  learned helplessness (Peterson et al. 1993)  reinforcing negative stereotypes about Roma Interactions between social networks and cognitive frames Absence of inter-community ties  lack of knowledge, growing prejudice Prejudices  hinder the formation of inter-community ties This project has recieved funding from the European Union's Seventh Framework Programme for research, technological development and demonstration under grant agreement no 613261.

Introducing the Kiútprogram 21 November 2018 Introducing the Kiútprogram Non-profit enterprise, founded in 2009 by private persons In the wake of the Grameen-model, but with fundamental differences permanent presence of well-trained field-workers social coaching, knowledge transfer, capability building, help in bureaucratic procedures (in the formal economy!), counterbalancing discrimination are as important as unsecured loans in the first, years application the methods of social collateral (sequential lending, contingent renewal) Financing 2010–2012 EU pilot project 2013 – Hungarian private sources only; no government support ⇒ serious contraction From 2013 only the cheapest agricultural programme Around 100 families per year More efficient than the astronomically expensive ‘public works’ scheme This project has recieved funding from the European Union's Seventh Framework Programme for research, technological development and demonstration under grant agreement no 613261.

© Kiútprogram – Krisztián Pamuki with the permission of the person photographed

© Kiútprogram – Zsombor Cseres-Gergely with the permission of the persons photographed

Programme changes on the go 21 November 2018 Programme changes on the go Importance of the loan in overcoming learnt helplessness: real opportunity and strong signal of trust ⇒ gives initial boost Besides institutional changes and capability building, integration into production and sales networks is also important – from 2013 Methods of social collateral mean psychological coercion, are unjust, destroy trust and hamper empowerment ⇒ abandoned in 2012 This project has recieved funding from the European Union's Seventh Framework Programme for research, technological development and demonstration under grant agreement no 613261.

Intervention at one point is not sufficient 21 November 2018 Intervention at one point is not sufficient Institutions Social networks Marginalised group Cognitive frames Examples of failed interventions This project has recieved funding from the European Union's Seventh Framework Programme for research, technological development and demonstration under grant agreement no 613261.

Intervention at one point is not sufficient 21 November 2018 Intervention at one point is not sufficient Changed Social networks Institutions Marginalised group (modified) Cognitive frames Examples of failed interventions This project has recieved funding from the European Union's Seventh Framework Programme for research, technological development and demonstration under grant agreement no 613261.

Main theoretical and policy implications 21 November 2018 Main theoretical and policy implications In the case of socially excluded groups social innovation should target all three social forces Knowledge transfer and building networks are crucial conversion factors It is helpful to separate the cognitive frames of the environment about the marginalised of the marginalised about themselves about the social innovation There is a trade-off between the level of marginalisation and the probability of success working only with the most disadvantaged ⇒ higher chance of failure only less disadvantaged assisted ⇒ social exclusion of the most disadvantaged may be aggravated There is a trade-off between exact ethnic targeting and building inter-community social ties This project has recieved funding from the European Union's Seventh Framework Programme for research, technological development and demonstration under grant agreement no 613261.

Main theoretical and policy implications (2) 21 November 2018 Main theoretical and policy implications (2) The less initial endowment programme participants have, the more efforts are needed ⇒ higher costs Requirement of financial sustainability may a priori exclude the most marginalised ⇒ danger of publicly financed interventions that increase marginalisation Removal of financial sustainability as a requirement may lead to irresponsible spending of public funds a possible solution: involvement of private funders Building trust between participants and SIM practitioners is a prerequisite for overcoming learned helplessness This project has recieved funding from the European Union's Seventh Framework Programme for research, technological development and demonstration under grant agreement no 613261.

Main theoretical and policy implications (3) 21 November 2018 Main theoretical and policy implications (3) Knowledge transfer and building social networks (i.e. investing into the development of participants' cultural and social capital) are crucial conversion factors There can be a trade-off between the type and degree of help and the short-term empowerment effects Differentiate between short and long-term effects Social innovation is a cumulative, path-dependent and interactive learning process ⇒ policy-making should be a learning process, too; flexible support schemes National authorities are often responsible actors in reproducing marginalisation ⇒ bypass national levels in EU support schemes? This project has recieved funding from the European Union's Seventh Framework Programme for research, technological development and demonstration under grant agreement no 613261.

Thank you for your attention! gyorgy.molnar@krtk.mta.hu attila.havas@krtk.mta.hu