{"id":3715,"date":"2024-12-19T17:07:26","date_gmt":"2024-12-19T16:07:26","guid":{"rendered":"https:\/\/health-inequalities.eu\/financing-e-guide\/?p=3715"},"modified":"2024-12-19T17:08:16","modified_gmt":"2024-12-19T16:08:16","slug":"addressing-rural-unemployment-in-france-through-adies-social-impact-contract","status":"publish","type":"post","link":"https:\/\/health-inequalities.eu\/financing-e-guide\/addressing-rural-unemployment-in-france-through-adies-social-impact-contract\/","title":{"rendered":"Addressing rural unemployment in France through ADIE’s social impact contract"},"content":{"rendered":"

Context and problem<\/span>(s)<\/span> addressed\u00a0<\/span><\/span>\u00a0<\/span><\/span><\/h2>\n

In 2016, France\u2019s average unemployment rate stood at 10.1%, which was higher than the average European Union rate of 8.1%. Unemployment rates vary from region to region and are significantly higher in rural areas compared to urban areas.\u00a0\u00a0<\/span><\/p>\n

This ec<\/span>onomic disparity led to social challenges for people affected by unemployment, as well as to the desertification of towns and increased financial strain on local authorities. In fact, the cost to the state is estimated at \u20ac 15 470\/year\/person for job seekers no longer receiving unemployment assistance. This number corresponds to the aggregate cost of the various benefits, social assistance and loss in revenue to the State attributable to each individual.<\/span>\u00a0<\/span><\/p>\n

Limited access to financial services further exacerbated the issue, especially for individuals lacking capital or formal qualifications. One potential solution is the use of microcredits. In fact, assisted microcredits are acknowledged by public authorities as a factor of social and economic inclusion, job creation, social cohesion and regional development.<\/span><\/p>\n

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Intervention and financing model<\/span><\/span>\u00a0<\/span><\/h2>\n

In order to address the issue of job desertification in rural areas and regenerate these regions, the Association for the Rights to Economic Initiative (ADIE) launched a social impact bond to promote access to microcredit for deprived beneficiaries. The programme targeted job seekers, recipients of minimum social benefits who aspired to start their own business, and individuals who could secure employment with improved mobility. The goal was to support them to develop a business activity in remote rural areas and re-enter the labour market.\u00a0<\/span>\u00a0<\/span><\/p>\n

Five investors collectively provided EUR 1.3 million in funds, distributed in four instalments between July 2017 and January 2020. ADIE was responsible for delivering its services across three rural areas. Repayment to investors was contingent upon the programme’s success, with the savings generated by the Ministry for the Economy and Finance being used to reimburse them.<\/span>\u00a0<\/span><\/p>\n

The results and impact of the programme are evaluated using appraisal criteria. The two results-based criteria focused on: 1) providing financing and support to at least 270 beneficiaries who were unable to obtain loans, and 2) ensuring the sustainable economic integration of 172 to 320 individuals over a period of two to three years.<\/span><\/p>\n

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Key outcomes (if applicable) and associated measurements\u00a0<\/span><\/span>\u00a0<\/span><\/h2>\n

Between 2017 and 2019, ADIE’s SIB facilitated the financing and support of 500 individuals in the targeted regions (Alpes, Burgundy, Occitanie). These individuals are expected to achieve long-term re-entry into the labor market, generating over EUR 2 million in savings for the State. <\/span>\u00a0<\/span><\/p>\n

ADIE estimated that for every euro invested in this programme, the local authority gains \u20ac2.38 after two years.<\/span><\/p>\n

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Publications:<\/h2>\n