“Myopia” and Development

by Alberto Borghi

When solidarity is grappling with the crisis.

As we continue our examination of the problems arising from or exacerbated by the ongoing economic crisis (as a follow up to the previous issue of Vedere Oltre, in the interview with Prof. Andrea Canevaro, pedagogue, and Prof. John Mazzanti, economist), we now analyze the concrete impact that this crisis had and still has on institutions that assist and protect the most vulnerable groups of citizens. Looking at the specific case of the Francesco Cavazza Institute for the Blind, it is quite evident that there has been a substantial decrease in government grants, but even more so in funding by private sources. In Bologna, banking foundations, in particular the Fondazione Cassa di Risparmio di Bologna and the Fondazione del Monte di Bologna e Ravenna, have always, since their legislative institution, played a significant role and acted as a driving force as funding partners of the Istituto. As is known, banking foundations were designed by the national legislature to exclusively promote and pursue aims of community service and promotion of economic development, in accordance to the terms of the statutes of the individual institutions. They play a key role in the economy of the region where they (or the bank from which they derive) operate. It is specified in the law that a balanced allocation of resources must be ensured, giving preference to areas with greater social relevance. As private entities, of course, these institutions must comply with a principle of economic efficiency in the management of their assets and, therefore, they know the limits imposed on the size and consistency of the same. At an historic moment in which banking institutions are among the key stakeholders affected by the economic crisis (not forgetting nevertheless the active role they played in its genesis), the contributions provided by banking foundations have experienced a sharp decline to the point of becoming nil, as in the case of Cavazza. Since the choice of sectors receiving contributions rests with the board of directors and administrators of each banking foundation, only a few of the applicants will actually receive funds as intended, in part or in full.

The exercise of discretion is, therefore, the norm. The Cavazza Institute has made several requests for funds to local banking foundations, in particular the Fondazione Cassa di Risparmio di Bologna, which has provided a set of criteria on which the application for financial aid must be formulated and subsequently granted: namely, the co-financing criteria (maximum expected contribution of 50% of the amount of the project) and solidarity (understood as altruistic interventions, reduction of hardship and more direct benefit to recipients of intervention). Until 2008, the Instituto Cavazza had received numerous contributions, all consistent with the highlighted strict criteria, specifically aimed at project C.I.F.R.A. (Centre for Integration, Training, Rehabilitation and Autonomy of Persons who are Blind and Visually Impaired), a project that has received about € 1.5 million (with proportional direct financial commitment by the Via Castiglione institution). Unfortunately, as of 2009, the disbursements were completely discontinued, despite the fact that the projects evaluated by the Fondazione Cassa di Risparmio di Bologna rmet all required criteria. Projects such as C.I.F.R.A as well as the building of a residence hall, which would have a significant and tangible impact on the daily lives of blind and partially sighted people have been subject to the sudden steep decline of a significant source of income. Over the past two years, there have been repeated requests for contributions, for necessarily less wide-ranging projects with amounts substantially equal to one-tenth of those previously provided. However, no contributions have been received.

Analyzing the financial reports of the Fondazione Cassa di Risparmio di Bologna, for example, we understand the reason for this, as we note the dramatic decrease of the voluntary fund budget headings (which are part of the institutional activities) because of the reduction of available assets due to the crisis in the banking sector.
In 1992, the amount of €224,000 was allocated, which became €1,200,000 in 1999, until funding reached its peak
in 2007, with
€5.2 million allocated to initiatives whose proposals had been accepted. Then, in 2008, the funds have halved
(€2.3 million), falling to
€15,000 in 2009. This leaves little room for optimism in the recovery of contributions to institutions which operate in the social field. It deepens the financial burden not only to pursue initiatives, but their very existence. Even in a region such as Emilia-Romagna where the practice of good governance and of wealth towards social issues were by now considered as an acquired right.