1. 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 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.

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

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

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

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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

16. Thank you for your attention!