Inclusion & Social Development

THE SCENARIO

ITALY
ISTAT data shows an increase since 2015 in absolute and relative poverty, a phenomenon that in 2016 affects 10.6% of resident families (8,465,000 individuals). These trends are particularly significant in the light of a youth unemployment rate that at the end of 2016 involving over 40% of the population and a percentage of NEETs (Not in Employment, Education, Training) amounting to 11.4%, the highest figure in Europe.

In this scenario, the data concerning the level of financial inclusion becomes increasingly significant, especially as regards the ability to understand financial products and the basic concepts to understand risks and make informed choices. The data shows a lower financial literacy rate than average, both for adults (the 2014 Standard & Poor's Global Finlit Survey survey placed Italy in last place among European countries), and for young people, so the World Bank estimates a level of 37% in 2015 compared to a European average of 52%.


SPAIN
The data shows an increase in people in absolute and relative poverty. According to the Istituto National de Estadistica, 15.3% of resident households and 22.3% of the population are in relative poverty: the percentages are particularly high in the central and southern areas of the country and the risk of relative poverty rises to 42.2% for an adult with a child and 25.5% for a couple with at least one child.
Child poverty is growing and 31.7% of those under 16 are at risk of social exclusion.

According to Eurostat, youth unemployment, especially in the 15-24 age bracket, involved more than 40% of the population at the end of 2016, the second rate in Europe after Greece. The percentage of NEETs (Not in Employment, Education, Training) between 15-24 years is 9.1%, compared to an OECD average of 6.3%: this is the second highest percentage in Europe after Italy.


CHILE
Against a positive trend, the relative poverty rate, according to the data available from the Ministerio de Desarrollo Social, affected 14.4% of the population in 2016: the problem particularly concerned minors, with a rate of 25.5%. Youth unemployment in 2017 involved more than 17% of the population in the 15-24 age range, increasing since 2016 and with a 19% peak for women. There was also a slight decrease in the employment rate for young people aged 25-34 and an increase in general unemployment.

The percentage of NEETs (Not in Employment, Education, Training) between 15-24 years was 12.8% in 2014, compared to an OECD average of 6.3% and since 2006 Chile is the country that has recorded the highest increases. The percentage of financial literacy is lower than the OECD average as too is the propensity to save, with 36% of the population having saved in the last year (compared to an OECD average of 71%).

REALE FOUNDATION FOR THE SOCIAL AREA

The countries of intervention of the Reale Foundation have been characterised in recent years by a situation of socio-economic vulnerability, in particular with regard to the younger sections of the population, especially with regard to youth unemployment rates and the growing phenomenon of NEETs (Not in Employment, Education, Training).  

Given this data, the research highlights the positive relationship between the local employment rate and the level of financial inclusion. The ability to understand, choose and use the various financial products and services is fundamental for the general population and in particular for young people, with a view to self-employment through entrepreneurial initiatives and in a perspective of savings to guarantee capital for the future and to cope with the risks and unforeseen events of daily life.  

For these reasons, Reale Foundation:

1. Promotes the financial inclusion of young people
Reale Foundation supports initiatives to promote financial inclusion (defined as the combination of knowledge, skills, attitudes and behaviour), and the effective use of financial services, also through projects designed to develop new skills.

By way of example, Reale Foundation can support:

• Initiatives of financial-insurance education and awareness of the importance of risk management in everyday life
   
• Initiatives that provide quality financial services that are economically accessible and adapted to the needs of the beneficiaries, also through the use of micro-credit, micro-insurance and new technological platforms

2. Promotes the employability and integration of young people
Reale Foundation supports young people at a disadvantage in the development of their skills in preparation for the employment world.

By way of example, Reale Foundation can support:

• Social enterprises supporting employability for young NEETs; young people leaving foster communities; youngsters with physical and/or cognitive disabilities
   
• Vocational training centres and trade schools
   
• Initiatives for the promotion of entrepreneurship education aimed at young people, for example through training and mentoring