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AGENDA 21 - Measuring Human Capital


The Green Economy

The Blue Economy

The Social Economy

Rio+20

Measuring Human Capital

Measuring Social Capital

MEASURING HUMAN CAPITAL

The chief concerns with this practice are invasion of privacy, monitoring of individuals, insurance consequences, and monetization/commodification of human worth.

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A UN resolution on happiness - which was co-sponsored by 68 countries — was adopted by consensus in July 2011. The ‘happiness resolution’ stated that gross domestic product (GDP) alone is not an adequate measure of human prosperity and that “a more inclusive, equitable and balanced approach is needed to promote sustainability, eradicate poverty, and enhance wellbeing.”

Policy recommendations from the meeting are now being drawn up, ranging from prioritising investment in renewable energy, public transport and green spaces; to introducing work sharing schemes that increase leisure time and prevent unemployment; discouraging materialism by banning advertising to children; and creating accounting systems that factor in the value of ‘services’ provided by nature. http://positivenews.org.uk/2012/wellbeing/7100/united-nations-calls-happiness-based-economy/

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Effects of targeted vouchers on distribution of human capital across time (29 June 2011)

We created a model for the distribution of human capital across time (for families). We assume that higher taxes can fund a higher targeted voucher amount, but that they also decrease effort and therefore GDP. A higher GDP means a higher targeted voucher amount. We find that at medium tax rates, we get some social mobility. At higher tax rates, we get lower GDP and human capital. With taxes (as opposed to no taxes and therefore no vouchers), the model predicts higher inequality but higher mobility, as well as higher GDP and average human capital — the ideal of the U.S.?!

What bothers us the most about this model? We do not include a likely “reaction” against progressive policies for social mobility (i.e., targeted vouchers) from the families with higher human capital, in which they would increase their private contribution to human capital. We also assume a linear function by which people reduce their effort in response to higher tax rates, but this may be naive.

Tomorrow we can include a measurement of mobility and elite accumulation of human capital if we have time.

http://ies2011.stanford.edu/?p=225

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  • The Knowledge Economy is fundamentally different from the preceding Industrial Economy or the Agrarian Economy because its core value is related to bytes, not bits—in the form of customized, applied information (“knowledge”). Its outputs are information-intensive services and “products,” many of which are infinitely scalable, like CDs, software or Webcasts. Of course, the Knowledge Economy also produces numerous industrial and agrarian goods, but the value of these goods is shifting toward information-intensive services that are related to the goods—away from the underlying goods themselves. For a more detailed treatment, see The 3.x Economies.
  • The Knowledge Economy is global by default because communication and collaboration are increasingly economical and pervasive. The world is transitioning into a networked structure in which people and nations are explicitly interdependent. Interdependence represents a tremendous leap of faith. Europeans have much to share in terms of leadership—in effect they are engaged in “integrating” themselves with each other—after centuries of rivalry and bloody wars. They are forging a common destiny and embracing interdependence.

http://globalhumancapital.org/the-knowledge-economy-the-ultimate-context-for-understanding-the-future/

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…The estimation method used for measuring human capital is quite different from that conventionally used for physical capital where in the latter the directly available information covers the quantity of new capital goods added to the existing capital stock. The magnitude of the stock is indirectly derived using the perpetual inventory method. As the owners and users of capital goods are often one and the same, the quantity of capital services has to be imputed indirectly as well. For human capital, it is the value of labour services that is directly observable (from labour market transactions), and the stock of human capital can be directly estimated from the present value of discounted lifetime labour income streams. Because the changes in the human capital stock between the beginning and the end of an accounting period must equal the sum of human capital flows, the amount of investment in human capital is indirectly derived by decomposing the stock changes into various components.

 

….This paper focuses on the LFS data covering the years 2001 to 2010 inclusive. The series cannot be calculated consistently for years prior to 2001 because of changes in the questions asked about pay in the Labour Force Survey. This survey covers over 120,000 individuals in over 50,000 households distributed across the UK. In common with other studies, this paper focuses on effective human capital (that is, human capital of people of working age) as this is more relevant for growth and for comparative purposes than estimates that cover the whole population. Thus, the paper focuses on individuals aged between 16 and 64 years, as these limits mark the end of compulsory education and the current retirement age. This is the convention that has been adopted by members of the international consortium developing measures of human capital and is a somewhat arbitrary choice that, while not crucial, could easily be relaxed and extended to other age groups. A future update may undertake sensitivity analyses of the impact of the choice of age groups on the stock value of human capital.

 The human capital of those people not in employment is valued at zero. This is consistent with the OECD’s guidance on the measurement of physical capital which states that, to “be counted as part of the capital stock all that is required is that assets are present at production sites and capable of being used in production or that they are available for renting by their owners to producers.” (OECD, 2001b pp 31).

http://www.ons.gov.uk/ons/dcp171766_248886.pdf

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 The Economics of Personal Data and Privacy: 30 Years after the OECD Privacy Guidelines

OECD Conference Centre 1 December 2010

Data can extract further data from itself in the form of metadata. Viktor Mayer-Schönberger, Professor of Internet Governance and Regulation, Oxford Internet Institute, demonstrated the rise of metadata using the example of Flickr photos taken by iPhone. By uploading photos, the consumers are also uploading metadata, i.e. geo-location data of where the photos were taken and when. This data can be downloaded by anyone. Two billion photos uploaded via Flickr allow a creation of a map to track where tourists go and when. Mayer-Schönberger observed that the value embedded in metadata can be independent from the actual or base data. Even opt-out information becomes another set of information that may have value. For example, houses that opted out from Street View for security reasons may be targeted by thieves as potentially valuable properties to go after.

 

Data is not only contributed but observed and the observation becomes another valuable data. More predictive science and analytical models are applied to these observations as they increasingly become the basis for businesses. Abrams argued that observations and analytics are redefining the relationship of communities to markets. http://www.oecd.org/dataoecd/22/26/47690650.pdf

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What if you could put a value on the employees – a real value – one you could list on your balance sheet as an asset? What if you could show some sort of positive relationship between those “expenses,” called employees, and the stock value everyone on Wall Street is so interested in?

It’s possible if we treat employee value like brand value? http://www.hrexaminer.com/nice-assets-fair-market-value-of-employees/

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http://www.unep.org/pdf/IWR_2012.pdf

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The Productivity Impact Model (PI Model) can help estimate the cost of depression to your company, and can also project the benefits when depressed employees receive treatment.

The PI Model uses detailed algorithms based on established clinical research and applies them to your own workforce to determine the incidence of depression within your organization. The PI Model then predicts the expected number of days each year your employees will be absent or suffer low productivity due to their depression, and the associated costs. Finally, the PI Model will project the net savings that will accrue with treatment of those employees suffering from depression.

http://www.depressioncalculator.com/Welcome.asp

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Promoting Employee Well-Being: Wellness Strategies to Improve Health, Performance and the Bottom Line – SHRM

 (this document advocates investment in human capital by companies, to limit absenteeism and the associated costs, by using Skinnerian techniques of incentives and penalties)

 

(indicators of acceptable health)

Use alcohol in moderation, if at all, and not drink and drive.

• Use automobile seat belts 100 percent of the time.

• Weigh within 15 percent of the desired weight or have a body mass index of less than 28.

• Maintain a cholesterol level of less than 200 or a total-to-HDL ratio of less than 4 to 1.

• Maintain a blood pressure reading below 130/85.

• Engage in moderate physical activity for a minimum of 30 minutes per day most days of the week.

http://www.shrm.org/about/foundation/products/documents/6-11%20promoting%20well%20being%20epg-%20final.pdf

 http://www.employeetotalwellbeing.com/article?id=211790

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Human capital bonds are issued by the state on the condition that organizations wishing to provide employment services can demonstrate impact on wider public service outcomes. This means tracking the money saved from investments. These savings can be tracked by an individual’s social security number.
In Minnesota if a group of ex-convicts decided to use a bond to invest in their own life skills or education and successfully reduced re-offending rates the state would honour back the bond because it represented money saved through non-intervention.

If the bond were to work in the UK we would need to better measure the outcomes of skills investment. The lack of connection between learner records and data on the employment destination of learners makes it impossible to calculate returns on expenditure. Access to this data could overcome the tendency to measure short term outcomes, through unemployment figures, rather than the long term benefits of an individual contributing to economic growth.

Although still in its very early stages, there is real potential for the human capital bond to bridge the gap between public and private investment. It is the type of policy innovation that could make for positive headlines – rather than disparagement of another failed scheme. It is also the type of innovation required if the UK is to fix its skills system whilst reducing welfare payments and encouraging economic growth.

http://www.nlgn.org.uk/public/2012/human-capital-bonds-investing-for-better-outcomes/

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The Human Capital Asset

Human capital is defined as the present value of a person’s future earnings. This ability to work and earn money over time is like a giant bond that provides fairly stable cash flows.

The human capital bond is not investment-grade for all investors however. Some investors have stable income streams and thus should have a higher capacity for market risk. Others have income streams that are more sensitive to economic conditions and should therefore have a more conservative financial asset allocation. http://corporate.morningstar.com/us/documents/Indexes/INS_INX_LifetimeAllocationFactsheet.pdf

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 TCR!’s project demonstrates how pay-for-performance (PFP) and other innovative outcomes-based funding mechanisms are beneficial to clients served, taxpayers, funders and nonprofits, using examples from the organization’s successful PFP contract with the State of Minnesota and founder Steve Rothschild’s Human Capital Bond initiative.

“Amongst nonprofits, Twin Cities RISE! is at the forefront of measuring outcomes and has been successful with the pay-for-performance funding model with the State of Minnesota for more than thirteen years,” said Art Berman, TCR! President and CEO. “This award will further our outcomes-based work of helping adults living in deep poverty find and retain living wage jobs.”

TCR! is a non-profit organization that focuses on training under- and unemployed individuals for placement in long-term living wage jobs where they earn at least $20,000 annually plus full benefits. TCR! provides training in Minneapolis and Saint Paul, as well as the signature Empowerment Training in area schools, other nonprofits and prisons.

http://twincitiesrise.org/documents/TCR_ashoka_winner_release.pdf

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[Part I] Rockefeller's Role: Short-Term Interventions that Lead to Catalytic Change (14 Jul 2011)

Social Impact Bonds and Pay For Success Projects: A Conversation with Antony Bugg-Levine
Part I: Rockefeller's Role: Short-Term Interventions that Lead to Catalytic Change

Having provided grants to the Social Impact Bond (SIB) initiative in the UK, the Rockefeller Foundation understood both the need and the opportunity to test SIBs in the U.S. For the last year, the Foundation has worked with different players -- potential SIBIOs, investors, government and social service providers -- to determine how to design a SIB initiative in the U.S.

Concurrent to the Foundation's work, the Federal government included the new Pay for Success program in the 2012 budget that provides up-front and continued funding to social service programs that are able to demonstrate key outcomes. In addition, numerous jurisdictions across the country are pursuing a variety of SIB, Pay for Success and hybrid models.

As Rockefeller's work moves forward, Nonprofit Finance Fund's Kristin Giantris sat down with Antony Bugg-Levine, Managing Director of Foundation Initiatives, to explore the Foundation's SIB goals and the role SIB and SIB-like models may play in the Foundation's efforts to support sector-wide innovation and systems change. This is part 1 (of 8) of the interview. You can find more information about Social Impact Bonds and Pay For Success projects at www.nffsib.org or www.payforsuccess.org.

http://www.youtube.com/watch?v=7svuHIaG_Ss

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The Latest in Socially Conscious Investing: Human Capital Performance Bonds

10 Jan 2012 - Katie Gilbert

In 1994, Steve Rothschild resigned from his post as executive vice president at General Mills to found Twin Cities RISE!, a Minneapolis nonprofit that provides job training to unemployed adults and helps them find jobs that pay a living wage. Ever the figures-focused executive, he immediately began wondering how the economic benefits of TCR! could be quantified, and whether any of those cash savings could be funneled back into his nonprofit somehow.

“I started with the assumption that social improvement would lead to economic value,” Rothschild says. “Economic value is the same as cash; it’s no different than economic value for a business.”

The next year, Rothschild approached the deputy director of the Minnesota planning agency with the seeds of an idea for a radical new social services financing structure: What if the state made TCR!’s funding contingent upon its success, assuming that its success could be shown to save the state money? The state’s economist crunched the numbers necessary to undergird the pay-for-success model, and determined how much the state would gain in tax revenues and save in welfare subsidies, food stamps, and other subsidies if TCR! helped one person move from an annual income of, for example, $10,000 to $20,000. The legislature approved the pay-for-success model in 1996, TCR! implemented it in 1997, and since then, Rothschild says, the state has invested $4.6 million in his nonprofit and has received $34 million back in economic value. That’s a return on the state’s investment of 624 percent.

Despite the economic and social benefits demonstrated by the model, Rothschild has hit a wall in his push to grow his successful nonprofit. “Even though we’re getting great returns, we can’t convince the legislature to invest more money into the possibility of earning it back because they just don’t have the cash,” he says. Like many states facing outsize budget shortfalls, Minnesota has been forced to slash spending across the board. In July, the state’s legislators slashed its $5 billion deficit only after a 20-day government shutdown.

“It became clear to me that we have to find new sources of revenue beyond what the state can appropriate through current revenue sources,” he says.

Rothschild has fixed his hopes most squarely on one particular source of capital: institutional investors. He believes that if an investment product could be designed to allow investors to finance successful public social programs like TRC!, those nonprofits would finally be able to scale up, presumably expanding the reach of their social and economic benefits. Investors’ funds would only be tapped by a social program when an independent assessor determines that program’s outcomes to be a money-saving success, and investors would be repaid their principal, plus a return, from the same government coffers that are presumably benefiting from higher taxes and fewer subsidies and other costs.

Rothschild has entreated the state to issue a new type of municipal bond focused on social impact, which he’s calling the Human Capital Performance Bond (or HuCap). His HuCap legislation passed into law in Minnesota in July, with $10 million of bonding authority approved for a pilot program.

Suddenly, the pay-for-success concept is catching on in the U.S., at least among state governments. A stagnant economy, a $1.3 trillion federal deficit, and serious budget pressures across various states and localities are all conspiring to heat up legislatures and demand a change of tack in approaches to social spending, and early pay-for-success language is popping up like popcorn from coast to coast. The state of Massachusetts formally sought out information about pay-for-success contracting over the summer, and this winter will issue a request for proposals from pubic social programs interested in the model. In New York City, a pay-for-success system will soon be applied to a program that works with the adolescent portion of the adult justice system and seeks to lower the chance that they’ll recidivate. New York State is also exploring the concept, and hopes to present a concrete pilot to test pay-for-success in six months to a year. Similar signs of interest are springing up in Virginia, Michigan, Indiana, and parts of California.

The federal government, too, is taking steps toward an embrace of the new financing model. In his proposed 2012 budget, President Obama designated $100 million across five agencies — Education, Labor, Justice, the Social Security Administration, and the Corporation for National and Community Services — to employ a pay-for-success design. Though Congress failed to approve that budget, the administration’s interest remains undiminished, and in late October the White House hosted a meeting of officials from federal, state and local governments, as well as nonprofits, philanthropists, academics and intermediaries to discuss pay-for-success contracting. Though the language in Obama’s proposed budget never proved binding, the October convening served as a “green light to the agencies to begin looking at where the opportunities are” to integrate pay-for-success into their structures, says Marta Urquilla, senior policy adviser to the White House’s Office of Social Innovation and Civic Participation, which co-hosted the convening with the New York–based Nonprofit Finance Fund. “What was important about the convening was the agencies were hearing from administration officials” — like Melody Barnes, Director of Domestic Policy Council, and Robert Gordon, executive associate director of the Office of Management — “that there is an interest and expectation that they begin to implement pilots in 2012.”

A pilot program in the U.K. is offering the first concrete glimpse of what pay-for-success investing would look like in practice, and has helped to generate the excitement that’s been spreading in the U.S. The U.K. model introduces a few notable differences to Rothschild’s system, and is designed like this: At HMP Peterborough, a prison about 75 miles north of London, three nonprofits will be implementing programs designed to reduce the likelihood that prisoners will re-offend upon their release. The money to fund the upfront costs of these programs will come from a £5 million ($8.21 million) pool of investor capital that’s been raised from private individuals and charities by London-based Social Finance U.K., an investment bank focused on the social sector. Independent assessors will keep track of recidivism rates among offenders released from Peterborough, and will compare the rates to those of a control group from another prison.

If the final analysis shows that re-offending rates among prisoners from Peterborough are at least 7.5 percent lower than the control group rates, the national government will pay investors a return of between 7.5 percent and 13 percent (depending on the actual rate of reduction). But if the Peterborough program fails — or, in other words, it doesn’t reduce recidivism by the aimed-for threshold — investors receive nothing. Despite the fact that, in this pilot program, the investment product is called a Social Impact Bond (SIB), this all-or-nothing risk profile means it’s not actually a bond at all (unlike Rothschild’s HuCap). One expert I spoke with joked that the Social Impact Bond should really be called the Social Impact Derivative. http://www.institutionalinvestor.com/Popups/PrintArticle.aspx?ArticleID=2958534

(note that ‘social’ investment now includes imprisonment and rehabilitation, and that no details are given in this report about what measures will be taken to reduce reoffending rates by ex-prisoners)

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Throwing money at problems and getting profits back, by Maryam Omidi (2 Mar 2011)

The political grandstanding that has taken place on both sides of the Atlantic since the NYSE Euronext-Deutsche Börse merger was announced confirms the pivotal and psychological roles that exchanges play in financial markets. So it is indicative of the momentum building behind social finance – which can be broadly defined as investment in schemes that deliver both financial returns and positive social outcomes – that the sector is about to get its own exchange.

The Social Stock Exchange, which is preparing for launch in the UK, will allow investors to trade exclusively in companies with social and environmental goals. The venture will provide a new stream of funding to social finance initiatives, which have existed for at least a decade but have recently been thrust into the spotlight by the UK coalition government’s vision for a “big society”.

Proponents of social finance argue that government focus on empowering communities and the drive by banks to prove their social worth could turbocharge the growth of what, to date, has been a niche area of finance.

The founders of the Social Stock Exchange – Mark Campanale, a former fund manager, and Pradeep Jethi, a former new product development manager at the London Stock Exchange – have so far raised £1.2m, including $500,000 from the Rockefeller Foundation. Campanale is hopeful that banks such as Triodos and Charity Bank, which lend to social enterprises and community organisations, will provide advice on listings and that mainstream banks will follow their lead.

Social finance advocates believe that, in addition to investing in enterprises, banks will eventually originate, structure and distribute products – although they concede that this will only happen when high net worth clients start asking for them.

Banks such as JP Morgan and Deutsche Bank have already published detailed papers on the potential of the market and, together with others, such as HSBC and Barclays, have committed money to the few social investment funds currently on offer.

Michele Giddens, executive director at Bridges Ventures, said: “Social finance is a positive opportunity for banks to use finance, which is their specialisation, for positive social goals at a time when they are under the pressure of public opinion post-credit crunch.”

Growing business

Industry insiders predict social finance could become a $500bn business – and one in which the UK could play a leading part – within the next 10 years. Rodney Schwartz is a former Paribas investment banker who set up ClearlySo, an organisation that helps connect social entrepreneurs and businesses to angel investors and companies through “speed-dating” events. He said: “This is an area where the UK could lead the world.”

Social Finance, headed by former Dresdner Kleinwort banker David Hutchison, is one of the firms at the forefront of the movement. Last year, the company launched the world’s first social impact bonds, which pay returns based on measurable social outcomes (see table on right). The firm is now working on a version for the US market, where President Barack Obama has recently proposed a $100m social impact bond pilot programme called Pay for Success.

A central plank of the UK government’s strategy will be the launch of a Big Society Bank this year, mandated with taking social investment out of the margins and into the mainstream by developing it into a new asset class.

But there is still a way to go. Last year, there was around £190m of social investment compared with £55.3bn of wider bank lending, £13.1bn of individual giving and £3.6bn of philanthropic grants, according to a government report.

Sir Ronald Cohen, co-founder of private equity firm Apax and the government’s adviser on the Big Society Bank, said: “If it takes 30 years to develop a new asset class, we’re now in year 11.

Ministers have said the Big Society Bank, which will use a £200m commercial loan from the UK’s largest banks as well as £400m from dormant accounts over the next few years, will remain independent from the government and use its balance sheet to co-invest, underwrite and guarantee investments. The bank will also serve as a wholesaler, funding intermediaries such as Bridges Ventures rather than frontline social enterprises, in order to build the sector’s infrastructure.

Giddens said: “The past decade has seen the emergence of a very interesting social sector. The creation of the Big Society Bank begins the next decade, when that sector will mature and flourish and potentially become a major player in the economy.”

A tricky path

One concern, however, is the commercial nature of the £200m loan. Some have raised fears that it may mean profits take precedence over social returns. Others point to microfinance, once hailed as the saviour of the poor, as an example of a social business model that lost sight of its initial objective once it proved profitable.
John Kingston, founder of CAF Venturesome, said: “There is a history of organisations starting in a social setting but later moving away.”

According to some, the sector has been held back by two things: a lack of understanding by investors, and an insufficient number of social ventures with the right business model to back.

A report by think tank the Young Foundation in February said that a dearth of investible social enterprises was one of the sector’s main challenges.

However, Campanale believes it is not the lack of viable ventures that has hampered the sector’s growth but a lack of access to equity capital: “We see the main challenge not as the availability of debt, but the unavailability of equity finance. Social enterprises are under-equitised and need to build stronger balance sheets.”

Cohen, dubbed “the father of private equity” for spotting the industry’s potential so early on, certainly believes that he is on to another market of the future. He said: “When I first started out in private equity, our first fund was £10m and I thought that this was a major new area. I have the same feeling about social investment.”

http://www.efinancialnews.com/story/2011-02-28/throwing-money-at-problems

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Human Capital Bond, Minnesota

The Minnesota State Government Finance Bill was signed on July 20 2011. It included $10 million appropriated for a pilot Human Capital Bond program. This is the first place in the United States to use this funding method. The Human Capital Bond is different to the developing UK Social Investment Bond approach. A municipal bond will be issued in the municipal bond market by the state of Minnesota, under the bonding authority of the State. Bond proceeds would provide a pool of capital that would be used to support pay-for-performance (payment by results) based programs delivered by pre-qualified service providers.

The purpose of the scheme is to provide additional capital for the state's highest performing human service providers (mostly non-profits) from private investors (banks, pension funds, individuals, foundations), and to raise funds for services for groups that lack a 'political constituency' to lobby for their needs - such as ex-convicts. The services funded by the bond are outside of the general programme of services offered by the state.

Organisations wishing to deliver services with the proceeds of the bond must apply to join a pool of organisations that are able to demonstrate the impact of their services on outcomes - such as moving from welfare to sustainable work. Providers must provide outcome data from their history to be certified. It is aimed at the highest performing organisations only. By producing savings through preventative programmes the participating organisations will generate savings for the state, which will be used to pay back the bond. The risk lies with the social enterprise as their payment is by results, however they are able to apply to an independent working capital fund for a low interest loan to cover their upfront costs.

There is provision in the Bill to allow the state finance department to track participating individuals through their social security number to calculate the increased revenue and reduced saving resulting from interventions. This is the key means by which evaluation will be undertaken.

The scheme will be governed by an Oversight Committee which will be appointed by the Commissioner of Management and Budget. Its members will include three state commissioners, a non-profit executive whose organization is a participant and other distinguished members who have expertise. It will certify providers to participate, negotiate with the state for payments to the providers, report on results and oversee evaluation.

What triggered the innovation?

Minnesota has budget problems that are not likely to be resolved in the near future. A 25-year forecast by the state economist predicts that state revenues will grow at a reduced rate of 3.9 % a year while health care costs escalate at 8.5 % and education barely stays even with inflation at 2 % growth. This means that everything else, including early childhood education, job training, anti poverty and drug rehabilitation programs and infrastructure spending will decline at about 3.9 % per year. Ten years from now there will be 35 % less to invest if these trends persist. The aging population will further reduce state revenue growth while dramatically increasing spending on pensions and healthcare. Solutions of increasing tax or introducing spending cuts are seen as only temporary answers. Only private investors are regarded as having the financial capacity to invest to make up part of the gap.

Minnesota's Human Capital Bond approach is based on Twin Cities Rise!, a successful, 13-year pay-for-performance contracting program in the State. It worked with unemployed people to move them into work, and achieved a 126% return on investment.

The idea of state bonds was championed by Steve Rothschild, founder of Twin Cities Rise! and President of Investing in Outcomes, an organisation incorporated in December 2010 with the purpose to develop, pilot and evaluate the Human Capital Performance Bond (HUCAP) in the State of Minnesota.

What are the key lessons?

  • By making this a market rate investment, rather than a social investment, not only is the infrastructure mostly in place for the financing to occur, but the pool of potential investors is much larger. This also makes scaling up more plausible.
  • Getting cross party political support has been key to getting this measure through the state legislature. The Republican Party was quick to embrace the approach, but it was a Democratic Governor that signed it off. www.investinoutcomes.org

http://www.nesta.org.uk/areas_of_work/public_services_lab/creative_councils/assets/features/human_capital_bond_minnesota

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 Update from the Measuring National Well-being Programme

28 February 2012

www.ons.gov.uk

-     UK’s human capital stock was worth an estimated £17.12 trillion in 2010

-     This is more than two-and-a-half times the UK National Accounts estimated value of the UK's tangible assets - buildings, vehicles, plant and machinery etc - at the beginning of 2010

-     The estimated value of the UK's human capital stock in 2010 was £130 billion lower than the estimate for the human capital stock in 2009.

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The Latest in Socially Conscious Investing: Human Capital Performance Bonds

Katie Gilbert / January 10, 2012 / In the News

This article examines pay-for-success and socially conscious investing. To learn more about Impact Investing, visit The Rockefeller Foundation’s initiative, “Harnessing the Power of Impact Investing.”

http://www.rockefellerfoundation.org/news/news/latest-socially-conscious-investing

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INCLUSIVE WEALTH REPORT

 http://www.unep.org/pdf/IWR_2012.pdf

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WORLD HAPPINESS REPORT

To assess the four pillars of sustainable development, we need a new set of indicators that extend well beyond the traditional GNP. The UN conferees have anticipated this need in the draft

outcome document for Rio+20:

Paragraph 111. We also recognize the limitations of GDP as a measure of well-being. We agree to further develop and strengthen indicators complementing GDP that integrate economic, social and environmental dimensions in a balanced manner. We request the Secretary-General to establish a

process in consultation with the UN system and other relevant organizations. These are the kinds of indicators – economic, social, and environmental – now being collected by Bhutan’s Gross National Happiness Commission in order to create Bhutan’s GNH Index.

 In addition to specific measures of economic, social, and environmental performance, governments should begin the systematic measurement of happiness itself, in both its affective and evaluative dimensions. The SDGs should include a specific commitment to measure happiness, so that the world as a whole, and each individual country, can monitor progress in sustainable development and can make comparisons with the achievements elsewhere. This massive effort of data collection has already begun. As this report discusses, survey data on happiness are now being collected in various means: the World Values Survey, covering up to 65 countries; the Gallup World Poll covering 155 countries; and several other national and international surveys mentioned in Chapters 2 and 3. The OECD is now developing important proposals for internationally standard measures explained in its case study.

http://www.earth.columbia.edu/sitefiles/file/Sachs%20Writing/2012/World%20Happiness%20Report.pdf

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A Big Wheel for Civilization

Based on the proven advantages of a stable equilateral triangle paradigm design, in 2009 SLDI released the world’s first comprehensive sustainable land development best practices system. Unlike other standards and certification programs, the SLDI Best Practices System helps to structure a triple-bottom-line (people, planet and profit) decision model that helps development projects achieve greater success in each area.

This “holy grail” Sustainable Land Development Best Practices System is symbolized as a geometrical algorithm that balances and integrates the triple-bottom-line needs of people, planet and profit into a holistic, fractal model that becomes increasingly detailed, guiding effective decisions throughout the community planning, financing, design, regulating, construction and maintenance processes while always enabling project context to drive specific decisions – The SLDI Code.  http://www.triplepundit.com/wp-content/uploads/2011/02/THE-FRACTAL-FRONTIER.pdf

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