Measuring the Social Impact The Limmat Foundation’s Approach

Measuring the Social Impact

The Limmat Foundation’sApproach

12/07/2012

Juan J. AlarconLimmat Stiftung, Zurich

Social Development• Harmonious and sustainable improvement of

the living conditions (goods and resources) of a people group.

• Goods and resources can be:– Tangible– Intangible– Individual– Collective

• Regrouped, they conform the matrix of the social-economical welfare.

Matrix of the Social-Economical Welfare

Goods / Resources

Individual Collective

TangibleTangible

Individual(Economical)

TangibleCollective(Public)

IntangibleIntangibleIndividual(Personal)

IntangibleCollective

(Commune)

Social-Economical Welfare IndexSEW-Index

• The SEW-Index measures impact, not results.

• Made up of four primary components:

Tangible-Individual(Economical)

Tangible-Collective(Public)

Intangible-Individual(Personal)

Intangible-Collective(Commune)

• Weighted average system of nine indicators.

Social-Economical Welfare IndexSEW-Index

• Data are easy to collect. • It uses objective data for the

appraisal of the different indicators. • Situates the evaluated group in a

range from 0 to 100.

• Allows to compare living conditions of different groups of people.

Matrix of the Social-Economical Welfare

The Four Primary Components of the SEW-Index

Collective-Tangible; 10% Individual-

Tangible; 40%

Collective-Intangible; 20%

Individual-Intangible; 30%

Individual-Tangible

Individual-Intangible

Collective-Intangible

Collective-Tangible

The Nine Indicators of the SEW-Index

Goods / Resources

Individual (70%) Collective (30%)

Tangible(50%)

Economic (40%)• Income (50%)• Property (30%)• Healthcare (20%)

Public (10%)• Public Services (50%)• Sanitary Conditions (50%)

Intangible (50%)

Personal (30%)• General Studies (40%)• Professional Education (60%)

Communal (20%)• Public Safety (60%)• Civil/Human Rights (40%)

Sanitary Conditions5%

General Education12%

Public Services5%

Civil and Humans Rights

8%

Public Safety12%

Health8%

Income20%

Properties 12%

Vocational Training18%

Individual-Tangible 40%

Individual-Intangible 30%

Collective-Intangible 20%

Collective-Tangible 10%

Weight of the Nine Indicators of the SEW-Index


Table for the “Income” Indicator


Switzerland Colombia

Indicator CHF 3’500/Month CHF 285/Month

Income Income/Year Income/Year

0 - 9.9 18’000 1’900

10 - 19.9 42’000 3’500

20 - 29.9 60’000 4’700

30 - 39.9 78’000 6’600

40 - 49.9 108’000 8’500

50 - 59.9 168’000 18’500

60 - 69.9 360’000 38’000

70 - 79.9 720’000 80’000

80 - 89.9 1’440’000 215’000

90 - 99.9 4’320’000 1’900’000

Table for the “General Studies” Indicator


SEWI scale Level attained 0 = illiterate15 = knows how to read and write20 = primary school studies non completed (3 years schooling)30 = primary school studies completed (5 years schooling)40 = secondary scholl studies non completed (9 years schooling)50 = technical secondary school studies, completed60 = secondary scholl studies (baccalaureate or equivalent) finished70 = middle technical schools (bachelors level)80 = masters degreel or equivalent (5 years university studies)90 = doctorate and/or postgraduate degree

Table for the “Civil and Human Rights enforceability” Indicator


SEWI Scale

0 = highly repressive and corrupted political system or state (no C+HR)

10 = moderately repressive and corrupted political system or state (low C+HR)

20 = theoretical democracy, but no real separation of powers (high corruption and low C+HR)

30 = C+HR guaranteed theoretically, middle corruption

40 = real separation of powers (enforceable C+HR), middle corruption

50 = real separation of powers (enforceable C+HR), low corruption

60 = C+HR guaranteed practically (at moderate costs) and no corruption

70 = C+HR guaranteed practically (at low costs) and no corruption

80 = C+HR guaranteed and practically easely enforceable

90 = C+HR guaranteed, enforceable and practically protected

The SEW-IndexA Real Case for Micro-Entrepreneurs in Cali, Colombia

Creation of a training center for micro-entrepreneurs in food processing industry: milk and vegetable products, bakery and grocery.


Results ImpactNumber of courses for micro-entrepreneurs

Improvement of the level conditions of the micro-entrepreneurs.

Number of micro-entrepreneurs trained

Number of credits given



Results ImpactNumber of courses for micro-entrepreneurs

Improvement of the level of the living conditions of the micro-entrepreneurs.

Number of micro-entrepreneurs trained

Number of credits given


The SEW-Index

A Real Case for Micro-Entrepreneurs in Cali

Year 2008

Indicators Value Weight SEW Main-Indicators SEW

Income 9.7 50% 4.9 Economic

Properties 8 30% 2.4

Health 13 20% 2.5 9.9 x 40% 3.9

Professional Training 10 60% 6 Personal

General Education 20 40% 8 14 x 30% 4.2

Public Safety 15 60% 9 Communal

Civil and H-Rights 25 40% 10 19 x 20% 3.8

Public Services 10 50% 5 Public

Sanitary Conditions 10 50% 5 10 x 10% 1.0

Total SEW Points low-low level 12.9

The SEW-Index


Year 2010



Properties 11 30% 3.3

Health 16 20% 3.2 11.6 x 40% 4.6





Public Services 15 50% 7.5 Public

Sanitary Conditions 10 50% 5 12.5 x 10% 1.3

Total SEW Points low-low level 14.8

The SEW-Index


Year 2012



Properties 24.3 30% 7.3

Health 26 20% 5.2 18.7 x 40% 7.5





Public Services 20 50% 10 Public

Sanitary Conditions 25 50% 12.5 22.5 x 10% 2.3

Total SEW Points low-medium level 21.4

Chart SEW-IndexEvolution SEW-Index Micro-Entrepreneurs

12.9

14.8

21.4

0.0

5.0

10.0

15.0

20.0

25.0

2008 2010 2012

SE

WI

Val

ue

Economic

Personal

Communal

Public

Total SEWI

+ 1.9 SEWI points

+ 6.6 SEWI points

+14%

+45%

Chart SEW-IndexEvolution SEW-Index Micro-Entrepreneurs

12.9

14.8

21.4

0.0

5.0

10.0

15.0

20.0

25.0

2008 2010 2012

SE

WI

Val

ue

Economic

Personal

Communal

Public

Total SEWI+ 8.5 SEWI points

+ 66%

Radar Chart Four Main-Indicators

Main-Indicators SEW-Index Micro-Entrepreneurs

0%

5%

10%

15%

20%

25%

30%Economic

Personal

Communal

Public

2008

2010

2012

Radar Chart Nine Indicators

The Nine Indicators of the SEWI

-5%

5%

15%

25%

35%Income

Properties

Health

General studies

Professional trainingPublic safety

Civil/Human rights

Public services

Healthfulness conditions

2008

Radar Chart Nine Indicators


-5%

5%

15%

25%

35%Income

Properties

Health

General studies


Civil/Human rights

Public services


2010

Radar Chart


-5%

5%

15%

25%

35%Income

Properties

Health

General studies


Civil/Human rights

Public services


2012

Radar Chart

Evolution of the Nine Indicators of the SEWI 2007-2012

0%

10%

20%

30%

40%Income

Properties

Health

General studies


Civil/Human rights

Public services


2008

2010

2012

Gross and Net Social Benefit

• The gross social Benefit is the difference between the value of the SEW-Index at time 1 and at time

GSB = SEWI1 – SEWI0

• The net social benefit takes into account the investment needed by the project:

NSB1 = (SEWI1 – NSI1) – SEWI0

The Matrix of the Social-Economical WelfareDevelopment needs a holistic approach.

• The SEW-Index is also an useful tool:• at the stage of the project planning. • individuate the weak points of the targeted

population. • to recognize complementary actions, alone or

together with other institutions. • In this way, the always scarce resources can be

used in an optimal way.

Development Projects

40

30

20

10

SEWI

COSTS

Humanitarian Aid Projects

Special Projects

Development Aid Projects

The Curve of Development

Measuring the Social Impact The Limmat Foundation’s Approach

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