[Applause] thank you I’m over Casper’s I used to
thank you I’m over Casper’s I used to
thank you I’m over Casper’s I used to work as a social worker for quite a long
work as a social worker for quite a long
work as a social worker for quite a long time I graduated in what we call social
time I graduated in what we call social
time I graduated in what we call social economics and now I’m a professor for
economics and now I’m a professor for
economics and now I’m a professor for Business Administration for social
Business Administration for social
Business Administration for social services and healthcare services in
services and healthcare services in
services and healthcare services in Germany at the Lutheran University of
Germany at the Lutheran University of
Germany at the Lutheran University of Bavaria in number you see a picture of
Bavaria in number you see a picture of
Bavaria in number you see a picture of Niklas Luhmann because lumen was a very
Niklas Luhmann because lumen was a very
Niklas Luhmann because lumen was a very famous sociologist and he’s regarded the
famous sociologist and he’s regarded the
famous sociologist and he’s regarded the founder of modern system theory in his
founder of modern system theory in his
founder of modern system theory in his lectures he didn’t almost use any charge
lectures he didn’t almost use any charge
lectures he didn’t almost use any charge charts of pictures at all but in order
charts of pictures at all but in order
charts of pictures at all but in order to give his students an impression of
to give his students an impression of
to give his students an impression of what system was about he just drew this
what system was about he just drew this
what system was about he just drew this symbol horizontal and one vertical line
symbol horizontal and one vertical line
symbol horizontal and one vertical line so the vertical line marks the border
so the vertical line marks the border
so the vertical line marks the border and the horizontal line on the left with
and the horizontal line on the left with
and the horizontal line on the left with emptiness on the right shows that
emptiness on the right shows that
emptiness on the right shows that circumstances are different within the
circumstances are different within the
circumstances are different within the circle to the system on the left
circle to the system on the left
circle to the system on the left compared to outside the system on the
compared to outside the system on the
compared to outside the system on the right so you can easily see the
right so you can easily see the
right so you can easily see the significance of it when you think about
significance of it when you think about
significance of it when you think about your skin as the border of your body as
your skin as the border of your body as
your skin as the border of your body as the system so he took that way of
the system so he took that way of
the system so he took that way of thinking and transferred it to analyzing
thinking and transferred it to analyzing
thinking and transferred it to analyzing society when I was a teenager my picture
society when I was a teenager my picture
society when I was a teenager my picture of society was very simple I was
of society was very simple I was
of society was very simple I was thinking in two systems so there was the
thinking in two systems so there was the
thinking in two systems so there was the system of doing business and in my mind
system of doing business and in my mind
system of doing business and in my mind these people who were doing business
these people who were doing business
these people who were doing business they were bad they were following rules
they were bad they were following rules
they were bad they were following rules that were not mine
that were not mine
that were not mine so I was doing something completely
so I was doing something completely
so I was doing something completely different me and my friends we were
different me and my friends we were
different me and my friends we were doing good we were very heavily involved
doing good we were very heavily involved
doing good we were very heavily involved in youth programs and we were selling
in youth programs and we were selling
in youth programs and we were selling coffee to sponsor the Nicaragua
coffee to sponsor the Nicaragua
coffee to sponsor the Nicaragua Revolution back in the early 1980s so
Revolution back in the early 1980s so
Revolution back in the early 1980s so this was my picture and this is how I
this was my picture and this is how I
this was my picture and this is how I grew up
grew up
grew up so you may understand that I haven’t got
so you may understand that I haven’t got
so you may understand that I haven’t got into business I became
into business I became
into business I became social worker so as a social worker I
social worker so as a social worker I
social worker so as a social worker I really got confused because I saw that
really got confused because I saw that
really got confused because I saw that Social Work in practice was some kind of
Social Work in practice was some kind of
Social Work in practice was some kind of doing business because I saw that the
doing business because I saw that the
doing business because I saw that the behavior of people working in the social
behavior of people working in the social
behavior of people working in the social sector was very much driven by the by
sector was very much driven by the by
sector was very much driven by the by the incentives provided by social
the incentives provided by social
the incentives provided by social legislation so to make it clear I watch
legislation so to make it clear I watch
legislation so to make it clear I watch in a home where we were taking care of
in a home where we were taking care of
in a home where we were taking care of prisoners of ex-convicts people released
prisoners of ex-convicts people released
prisoners of ex-convicts people released from prison and most of them didn’t
from prison and most of them didn’t
from prison and most of them didn’t commit a crime after that some did and I
commit a crime after that some did and I
commit a crime after that some did and I was thinking that we really provided a
was thinking that we really provided a
was thinking that we really provided a very important service for our society
very important service for our society
very important service for our society but when I looked at the way our service
but when I looked at the way our service
but when I looked at the way our service was financed I saw that the money we got
was financed I saw that the money we got
was financed I saw that the money we got was not related at all to the social
was not related at all to the social
was not related at all to the social impact we provided the money we got was
impact we provided the money we got was
impact we provided the money we got was related to the costs we created and this
related to the costs we created and this
related to the costs we created and this really spoiled our way of thinking so
really spoiled our way of thinking so
really spoiled our way of thinking so first of all we were thinking how to
first of all we were thinking how to
first of all we were thinking how to finance our service and just in second
finance our service and just in second
finance our service and just in second place we were thinking how to provide
place we were thinking how to provide
place we were thinking how to provide really good service for our clients so
really good service for our clients so
really good service for our clients so doing good to me turned out as something
doing good to me turned out as something
doing good to me turned out as something like doing good if it pays which really
like doing good if it pays which really
like doing good if it pays which really made me sad so in my job and later as a
made me sad so in my job and later as a
made me sad so in my job and later as a scientist I tried to reconcile these two
scientist I tried to reconcile these two
scientist I tried to reconcile these two systems the system of economy and the
systems the system of economy and the
systems the system of economy and the system of Social Work I was thinking how
system of Social Work I was thinking how
system of Social Work I was thinking how can we really measure the social impact
can we really measure the social impact
can we really measure the social impact we provide and how can we make sure that
we provide and how can we make sure that
we provide and how can we make sure that money goes where social impact is
money goes where social impact is
money goes where social impact is provided and to make sure that those who
provided and to make sure that those who
provided and to make sure that those who provide this impact are really rewarded
provide this impact are really rewarded
provide this impact are really rewarded in a fair way so if I put it into one
in a fair way so if I put it into one
in a fair way so if I put it into one sentence let’s let money follow social
sentence let’s let money follow social
sentence let’s let money follow social impacts now I want to demonstrate to you
impacts now I want to demonstrate to you
impacts now I want to demonstrate to you this way of thinking if we look at
this way of thinking if we look at
this way of thinking if we look at incarceration in our countries there are
incarceration in our countries there are
incarceration in our countries there are some amazing figures that may be well
some amazing figures that may be well
some amazing figures that may be well known but if you look at the population
known but if you look at the population
known but if you look at the population of incarcerated people in the US
of incarcerated people in the US
of incarcerated people in the US compared to Germany we find that out of
compared to Germany we find that out of
compared to Germany we find that out of a hundred thousand citizens in the u.s.
a hundred thousand citizens in the u.s.
a hundred thousand citizens in the u.s. six hundred and sixty six in prison look
six hundred and sixty six in prison look
six hundred and sixty six in prison look at the figure in Germany the figure is
at the figure in Germany the figure is
at the figure in Germany the figure is way lower it is 77 our countries come
way lower it is 77 our countries come
way lower it is 77 our countries come closer together when we look at the
closer together when we look at the
closer together when we look at the expenses for incarceration the annual
expenses for incarceration the annual
expenses for incarceration the annual costs for someone being incarcerated sum
costs for someone being incarcerated sum
costs for someone being incarcerated sum up to about $32,000 per year in the u.s.
up to about $32,000 per year in the u.s.
up to about $32,000 per year in the u.s. compared to forty five thousand five
compared to forty five thousand five
compared to forty five thousand five hundred dollars in Germany so it seems
hundred dollars in Germany so it seems
hundred dollars in Germany so it seems the US are better up but we have to take
the US are better up but we have to take
the US are better up but we have to take into consideration the duration of
into consideration the duration of
into consideration the duration of incarceration an average inmate in the
incarceration an average inmate in the
incarceration an average inmate in the u.s. is kept in prison for thirty seven
u.s. is kept in prison for thirty seven
u.s. is kept in prison for thirty seven point five months compared to seven
point five months compared to seven
point five months compared to seven months in Germany so there is a big
months in Germany so there is a big
months in Germany so there is a big difference and there is a big difference
difference and there is a big difference
difference and there is a big difference in public expenses so if we look at a
in public expenses so if we look at a
in public expenses so if we look at a hundred average inmates in the u.s. you
hundred average inmates in the u.s. you
hundred average inmates in the u.s. you can easily calculate that if you keep a
can easily calculate that if you keep a
can easily calculate that if you keep a hundred of them for 37.5 months in
hundred of them for 37.5 months in
hundred of them for 37.5 months in prison the government has to pay almost
prison the government has to pay almost
prison the government has to pay almost ten million dollars so the question is
ten million dollars so the question is
ten million dollars so the question is is that really a good investment it
is that really a good investment it
is that really a good investment it would be a good investment if committing
would be a good investment if committing
would be a good investment if committing a crime was really as
a crime was really as
a crime was really as singular event in someone’s life who is
singular event in someone’s life who is
singular event in someone’s life who is sent to prison but we all know this is
sent to prison but we all know this is
sent to prison but we all know this is not the case so let’s take a hundred
not the case so let’s take a hundred
not the case so let’s take a hundred average prisoners in the US and 100
average prisoners in the US and 100
average prisoners in the US and 100 average prisoners in Germany and talk
average prisoners in Germany and talk
average prisoners in Germany and talk about relapse talk about those being
about relapse talk about those being
about relapse talk about those being released from prison and committing a
released from prison and committing a
released from prison and committing a crime again there are 67% so 7 out of 10
crime again there are 67% so 7 out of 10
crime again there are 67% so 7 out of 10 committing a crime again in the US and
committing a crime again in the US and
committing a crime again in the US and it’s almost every second committing a
it’s almost every second committing a
it’s almost every second committing a crime again in Germany but committing a
crime again in Germany but committing a
crime again in Germany but committing a crime again doesn’t mean that those
crime again doesn’t mean that those
crime again doesn’t mean that those people are getting incarcerated again so
people are getting incarcerated again so
people are getting incarcerated again so we have to compare the re-incarceration
we have to compare the re-incarceration
we have to compare the re-incarceration rate and these figures really matter so
rate and these figures really matter so
rate and these figures really matter so in the u.s. forty three point three
in the u.s. forty three point three
in the u.s. forty three point three percent of all prisoners released
percent of all prisoners released
percent of all prisoners released getting incarcerated again within the
getting incarcerated again within the
getting incarcerated again within the next three years after their release in
next three years after their release in
next three years after their release in Germany the rate is a bit lower but
Germany the rate is a bit lower but
Germany the rate is a bit lower but significantly lower lower the rate is 33
significantly lower lower the rate is 33
significantly lower lower the rate is 33 percent so we can create a business
percent so we can create a business
percent so we can create a business model from that creating a business
model from that creating a business
model from that creating a business model means making life easier making
model means making life easier making
model means making life easier making life less troublesome saving Natural
life less troublesome saving Natural
life less troublesome saving Natural Resources saving money or saving time a
Resources saving money or saving time a
Resources saving money or saving time a business model is about creating
business model is about creating
business model is about creating something that has positive effects for
something that has positive effects for
something that has positive effects for all parties for those who provide the
all parties for those who provide the
all parties for those who provide the service for those who get the service
service for those who get the service
service for those who get the service and for the society so the technology I
and for the society so the technology I
and for the society so the technology I want to show you is very simple and
want to show you is very simple and
want to show you is very simple and heavily tested it is help for
heavily tested it is help for
heavily tested it is help for ex-convicts so we got to provide good
ex-convicts so we got to provide good
ex-convicts so we got to provide good probation service
probation service
probation service we’ve got to provide regular counseling
we’ve got to provide regular counseling
we’ve got to provide regular counseling and maybe the most important we have to
and maybe the most important we have to
and maybe the most important we have to provide good vocational training and we
provide good vocational training and we
provide good vocational training and we can prove that these measures work to
can prove that these measures work to
can prove that these measures work to bring down the re incarceration rate so
bring down the re incarceration rate so
bring down the re incarceration rate so if we think about a business model we
if we think about a business model we
if we think about a business model we have to provide a fair profit so I hope
have to provide a fair profit so I hope
have to provide a fair profit so I hope you agree if I compare the business
you agree if I compare the business
you agree if I compare the business model that I want to show you to an
model that I want to show you to an
model that I want to show you to an investment on the stock market so if we
investment on the stock market so if we
investment on the stock market so if we look at the development of the S&P 500
look at the development of the S&P 500
look at the development of the S&P 500 index over the last thirty years you can
index over the last thirty years you can
index over the last thirty years you can easily easily calculate that the average
easily easily calculate that the average
easily easily calculate that the average rate is about five point six eight
rate is about five point six eight
rate is about five point six eight percent per year so this is the profit
percent per year so this is the profit
percent per year so this is the profit an investor would expect and I want to
an investor would expect and I want to
an investor would expect and I want to show you how an investment into Social
show you how an investment into Social
show you how an investment into Social Services can provide the same profit so
Services can provide the same profit so
Services can provide the same profit so what is the task what is the challenge
what is the task what is the challenge
what is the task what is the challenge the challenge is let’s bring down the
the challenge is let’s bring down the
the challenge is let’s bring down the re-incarceration rate in the u.s. to the
re-incarceration rate in the u.s. to the
re-incarceration rate in the u.s. to the level of Germany so let’s bring down the
level of Germany so let’s bring down the
level of Germany so let’s bring down the reconsideration rate by ten point two
reconsideration rate by ten point two
reconsideration rate by ten point two percent percent in other words if we
percent percent in other words if we
percent percent in other words if we take a hundred prisoners released from
take a hundred prisoners released from
take a hundred prisoners released from prison let’s make sure that ten less ten
prison let’s make sure that ten less ten
prison let’s make sure that ten less ten less will be incarcerated again okay now
less will be incarcerated again okay now
less will be incarcerated again okay now let’s talk about these three prisons the
let’s talk about these three prisons the
let’s talk about these three prisons the expenses for this three average
expenses for this three average
expenses for this three average prisoners are roughly a million dollars
prisoners are roughly a million dollars
prisoners are roughly a million dollars for incarceration for 37 month or in
for incarceration for 37 month or in
for incarceration for 37 month or in other words this money can be saved if
other words this money can be saved if
other words this money can be saved if we can avoid the re-incarceration well
we can avoid the re-incarceration well
we can avoid the re-incarceration well if you look at a bit closer it is not
if you look at a bit closer it is not
if you look at a bit closer it is not this $1,000,000 it’s a bit less because
this $1,000,000 it’s a bit less because
this $1,000,000 it’s a bit less because we have to take into consideration
we have to take into consideration
we have to take into consideration that if you put someone in prison this
that if you put someone in prison this
that if you put someone in prison this may save social subsidies like food
may save social subsidies like food
may save social subsidies like food stamps or subsidies for affordable
stamps or subsidies for affordable
stamps or subsidies for affordable housing so I reduce that amount of money
housing so I reduce that amount of money
housing so I reduce that amount of money which should be around a hundred
which should be around a hundred
which should be around a hundred thousand euros so the net savings nine
thousand euros so the net savings nine
thousand euros so the net savings nine hundred thousand dollars so what would
hundred thousand dollars so what would
hundred thousand dollars so what would someone who might consider investing
someone who might consider investing
someone who might consider investing money into the stock market give for
money into the stock market give for
money into the stock market give for such a program he might be willing to
such a program he might be willing to
such a program he might be willing to give eight hundred and twenty eight
give eight hundred and twenty eight
give eight hundred and twenty eight thousand dollars and demand 72 thousand
thousand dollars and demand 72 thousand
thousand dollars and demand 72 thousand dollars as his profit I calculated this
dollars as his profit I calculated this
dollars as his profit I calculated this profit of a period for one and a half
profit of a period for one and a half
profit of a period for one and a half years so this program might want three
years so this program might want three
years so this program might want three years but the investor doesn’t need to
years but the investor doesn’t need to
years but the investor doesn’t need to pay the money in advance so he pays it
pay the money in advance so he pays it
pay the money in advance so he pays it every month so so I calculated the
every month so so I calculated the
every month so so I calculated the profit for one and a half years there is
profit for one and a half years there is
profit for one and a half years there is no business model without a fair risk
no business model without a fair risk
no business model without a fair risk assessment so the prisoners who will not
assessment so the prisoners who will not
assessment so the prisoners who will not be sent to prison again
be sent to prison again
be sent to prison again will pay back because the government
will pay back because the government
will pay back because the government saves a lot of money you see there is a
saves a lot of money you see there is a
saves a lot of money you see there is a risk and the risk that the investor has
risk and the risk that the investor has
risk and the risk that the investor has to take is related to the effects the
to take is related to the effects the
to take is related to the effects the Social Service provides so if we just
Social Service provides so if we just
Social Service provides so if we just achieve two prisoners less or three or
achieve two prisoners less or three or
achieve two prisoners less or three or four up to eight the money is safe for
four up to eight the money is safe for
four up to eight the money is safe for the government doesn’t come up to the
the government doesn’t come up to the
the government doesn’t come up to the investments so there is a break-even
investments so there is a break-even
investments so there is a break-even point at about nine and there is the
point at about nine and there is the
point at about nine and there is the range of profit beyond nine so imagine
range of profit beyond nine so imagine
range of profit beyond nine so imagine an investor and the social worker follow
an investor and the social worker follow
an investor and the social worker follow the same objectives so what could we do
the same objectives so what could we do
the same objectives so what could we do with that money so let’s take eight
with that money so let’s take eight
with that money so let’s take eight hundred and twenty eight thousand
hundred and twenty eight thousand
hundred and twenty eight thousand dollars what could a social service
dollars what could a social service
dollars what could a social service provider
provider
provider do if we take into consideration that
do if we take into consideration that
do if we take into consideration that one hour of good social work might cost
one hour of good social work might cost
one hour of good social work might cost $50 so it might be reasonable combining
$50 so it might be reasonable combining
$50 so it might be reasonable combining sessions with individuals and group
sessions with individuals and group
sessions with individuals and group sessions so let’s take one hour of
sessions so let’s take one hour of
sessions so let’s take one hour of social work with individual counseling
social work with individual counseling
social work with individual counseling and two hours of group counseling so if
and two hours of group counseling so if
and two hours of group counseling so if we take group counseling in a group of
we take group counseling in a group of
we take group counseling in a group of three this might cost a hundred and
three this might cost a hundred and
three this might cost a hundred and fifty dollars and I calculated that this
fifty dollars and I calculated that this
fifty dollars and I calculated that this might cost for an individual about $30 a
might cost for an individual about $30 a
might cost for an individual about $30 a week so we would have $80 a week for
week so we would have $80 a week for
week so we would have $80 a week for every ex-prisoner so how long can this
every ex-prisoner so how long can this
every ex-prisoner so how long can this money last this money can last for about
money last this money can last for about
money last this money can last for about a hundred and four weeks of service so
a hundred and four weeks of service so
a hundred and four weeks of service so in other words we could provide provide
in other words we could provide provide
in other words we could provide provide two hours of social service taking that
two hours of social service taking that
two hours of social service taking that money that is invested into social
money that is invested into social
money that is invested into social impact so if we think about combining
impact so if we think about combining
impact so if we think about combining the two systems of economics and the
the two systems of economics and the
the two systems of economics and the welfare system we have to answer two
welfare system we have to answer two
welfare system we have to answer two basic questions does it help and does it
basic questions does it help and does it
basic questions does it help and does it pay back so if you look at the lower
pay back so if you look at the lower
pay back so if you look at the lower left corner the decision is clear things
left corner the decision is clear things
left corner the decision is clear things don’t help and things don’t pay back so
don’t help and things don’t pay back so
don’t help and things don’t pay back so we better leave it but in my mind too
we better leave it but in my mind too
we better leave it but in my mind too often we take decisions in the upper
often we take decisions in the upper
often we take decisions in the upper right corner we get profit out of it but
right corner we get profit out of it but
right corner we get profit out of it but it doesn’t have so things may work in
it doesn’t have so things may work in
it doesn’t have so things may work in this corner but for a society things
this corner but for a society things
this corner but for a society things don’t make sense it is good that we find
don’t make sense it is good that we find
don’t make sense it is good that we find lots of people especially in the US that
lots of people especially in the US that
lots of people especially in the US that are located in the lower left corner
are located in the lower left corner
are located in the lower left corner this is the corner of philanthropists
this is the corner of philanthropists
this is the corner of philanthropists they invest
they invest
they invest because it helps knowing that the money
because it helps knowing that the money
because it helps knowing that the money doesn’t come back in their lifetime the
doesn’t come back in their lifetime the
doesn’t come back in their lifetime the upper left corner is about social impact
upper left corner is about social impact
upper left corner is about social impact investing social impact investing means
investing social impact investing means
investing social impact investing means that individuals or corporations invest
that individuals or corporations invest
that individuals or corporations invest into social services and they get their
into social services and they get their
into social services and they get their money back if the social service proves
money back if the social service proves
money back if the social service proves that it creates social impact so next
that it creates social impact so next
that it creates social impact so next time you think about investments
time you think about investments
time you think about investments keep in mind 10x inmates who now lead a
keep in mind 10x inmates who now lead a
keep in mind 10x inmates who now lead a decent life and compare it to the value
decent life and compare it to the value
decent life and compare it to the value someone else proposes to you thank you
someone else proposes to you thank you
someone else proposes to you thank you [Applause]
”
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