Economic Impact Studies: Tools for Political Awereness?

Copenhagen, January 22, 2016Lotte Hviid Dhyrbye

The Danish Think Tank Libraries of the Future

1) The Danish Think Tank Libraries of the Future

2) Political Influence through economic impact studies of public libraries.European project:

- Denmark- UK- Barcelona/Spain

FOCUS

Think Tank of Libraries of the Future

Workshops & Conferences

Debate ProjectsSurveys Networks

Think Tank generates knowledge and debate (professional & political) about the role and development of the libraries in the Danish welfare- and knowledge society in a more and more digital context.

A bottum up- initiative

Public Libraries From:

Ballerup Municipality • Billund Municipality • Esbjerg Municipality • Frederikssund Municipality

• Gladsaxe Municipality • Municipality of Glostrup • Herning Municipality • Municipality of

Hjørring • Holbæk Municipality • Horsens Municipality • Kolding Municipality • The Municpality

of Køge • Nyborg Municipality • Næstved Municipality • Odense Municipality • Randers

Municipality • Roskilde Municipality • Silkeborg Municipality• Slagelse Municipality •

Svendborg Municipality • Sønderborg Municipality • Vejle Municipality • Viborg Municipality •

Aabenraa Municipality • Aalborg Municipality • Municipality of Aarhus

Library organisations

Association of Danish Public Library Managers

The Danish Library Association (Chairman)

Danish Association of Research Libraries

The Royal School of Library and Information Science (RSLIS

Other members

AxiellMoos-Bjerre Analysis

Libraries of the future – a segment analysis The analysis has generated the most detailed collection of data and report focusing on the use of libraries, barriers and drivers conducted by Moos Bjerre Analysis. Morethan 2000 people participated, with special focus on young people between age 15 – 29. The report generated detailed operational knowledge around 10 segments and strategic policy input on the role of the public libraries.

Volunteers at public libraries Report about volunteers at public libraries, facts, values and expectation. The report was launched at a conference with focus on ‘new ways of volunteering’, democracy, citizenship, participation and the role of the libraries of the future.

The public library: a design – anthropologic approach A cooperation between the Danish Agency for Culture, Danish School for Media and Journalism and the Think Tank to produce anthropologic data and concepts for the public libraries of the future. A design anthropologic team developed concepts and development paths together with 8 public libraries and their users and non-users.

Reading preferences at students Analysis of reading preferences of 500 Danish students. The survey’ focus is on the preferences for digital or physical materials, gender, level of education and the expectation and needs of the digital and physical library in general.

Some examples

First study in Denmark:

Economic Value of Public Libraries

European Project: Demonstrating Economic Impact of Public Libraries

Need of: New and ‘competitive’ arguments and improve library advocacy Expand and rethink methods to measure the role and impact of public

libraries across Europe Expand the debate of the future role of the libraries Share knowledge and experience across boarders

Funded by Reading & Writing Foundation

Ambitions & expected products:

European political key- messages & hearing in the European Cultural Commitee European Learning Network on measurement of the impact

of public libraries (Knowledge and methods-sharing) Script on how-to-do/existing experiences & fact-sheets ‘Digital platform’ for knowledge sharing Balancing numbers and narratives

Projects ends May 2016 (?)

How?

4 workshops in 4 countries: (UK; Croatia, Netherlands & Spain):

Results from different studies:- Methods in Economic Impact Studies- Usage (political, professional, communication strategies)- Results & impact- Balancing numbers & narratives- European messeages

Barcelona november 2015

Zagreb, nov. 2015

London, november 2015

Split, december. 2015

Approaching the target

Bruxelles, december- 2015

Rikke Karslson, MEP, DK

Andrew Lewer, MEP, UK

Bruxelles, february- 2016

European hearing, Culutral Committee, Bruxelles, 2016?

Demonstrating Economic Impact - The New Black3 studies from Denmark, UK & spain

• Background• Proces & methods• Mainresults• Effect & reactions

• Changing role: Not the only access to knowledge and much more than just books

• Library contribution is mesured in user satisfaction & book loans

• Focus on activities = output and not the impact on society – what does it matter

• Need of an alternative to the narrative (and many words) about education and social cohesion - very good arguments but to long to explain

• New advocacy arguments both towards the polical agenda

and officials

• Entering the battlefield of welfare – why shouldn’t cultural

institutions use economic arguments when otheres do?

• New input to the debate about culture, libraries & its con-

tribution to the welfare system

- Prioritisation – both politically and internally in the libraries

Common background

Lars Løkke RasmussenPrimeminister

Reducing municapal costs = also libraries

2 % reduction on cultural activites = 600 mio. DKK

50 % of the Danes prefer to reduce costs to culturalinstitutions and spend it on health, education & the elderly

Culture – no economy!

Main Results

3 economic impact factors:

Cultural & social impact (550 mio. Euro) Contribution through reading (250 mio.Euro Contribution through digital transition

(27 mio. Euro)

Annual costs = 340 mio. Euro

Public libraries are a very good business for society

Cultural & social impact = 530 mio. Euro

. Method: Willingness To Pay (WTP) based upon a Norwegian study from 2004 (Aaby)

Libraries has great value to society due to:

• Your own invidual use

• The use of other people

• Cultural & social institution• Resolving the market distortion – ”broad cultural offer”

• Local function of sociel cohesion, meeting place for all (also non-etnich danes)

Value: 530 mio. Euro – much more than annual costs = 340 mio. Euro

Value through Digital Transistion

50.000 Danes get their computer skills upgraded at the libraries every year = 1,1 % of the population. Therebyaccelerate and ease the transistion to digital society through:

- Public savings from transistion to email (20 mio. DKK)

- Public savings from digital selfservice (11 mio. DKK)

- Personal gains in by on-line banking (9 mio. DKK)

- Personal gains by time savings (5 mio.)

Total savings 27 mio. Euro

Contribution through reading

Libraries contribute with DKK 2bn annually through higher education productivitygains through three interrelated effects:

1) Libraries improve children’s reading skills2) Better reding skills directly affect educational level3) A high level of education produces greater economic benefit =0,1% of GDP

Logic model

Reactions

Aldermen and mayors in political debate March 2015 in Aarhus

Impact of Libraries on the political agenda

Perspectives

Core-competencies

Big potential to do more working with scholls

Libray are doing much more f.ex. highscools

The libraries on the local agenda

Libraries are heros

And not supposed to be mesured in dollars – instead they should tell the good storyMarianne Jelved, former Minister of Culture

1. Key Message = Happiness & well-being (primary benefit)

Library use has an Impact on people’s overall quality of life :

Method: Measurement through contingent valuation (CV):2000 users and non-users were asked directly their Willingness to Pay (WTP) for library services as

represented by paying additional council tax (primary benefits).

Result: Annual WTP for local library services: £723.4 mio.

Conducted by: researchers from the London School of Economics and Political Science & Simetrica. Using recognized method (Green Book). Launched in 2015

The health and wellbeing benefits of public libraries, UK

2. Key message: Library use = reduction in medical services

Libraries may make a contribution to society though theirimpacts on health.

The UK-study looks at the potential savings due to reductionsin medical service usage/GP visits as a result of improvementsin general health from library service usage.

This is estimated using exchequer cost savings estimates (secondary benefits) and based upon ‘the logic model’.

Savings: £27.5 million per year (in average cost savings) = £1,32 per person

1,32 £ pr. person per year

‘Corridor strategy’

Indirectly influence on politicians via Library Managers & organisations and talking to influence makers in the corridors

No Communication Strategy (a matter of ressources)

Professional identity

The value of public libraries in society (2014)focus on 4 impact factors: Cultural, social, educational and economic.

Economic focus: The return on investment of MLN libraries’ (ROI)

Result:The expenditure on public libraries, is an investment with economic benefits for the Province both directly and indirectly.

For every euro of public money invested in MLN libraries, the return of investment for each euro invested:

Direct benefit: €1 -> €2.25Indirect benefit: €1 -> €4.25

The Barcelona Province Municipal Libraries Network (MLN)

Reflections & conclusion (national level)

• A new argument in the public debate -> the public libraries actually has a great impact on the BNP (new perspective)

What did it change ?

• A great focus on the public libraries maintasks and core competencies

• A new focus on the potential in cooperating with other local players

• A new proffessional self-understanding /better professionel confidence

• We took the first steps and libraries have asked for more at a local level

Conclusions at a national level

It works: “The power of numbers” to access the policy agendaRobust evidence - and important to have a recognized methode to avoid anydiscussion about the facts.

You can change the perception of libraries – both public, politically & professional

The communication strategy are a full time job – and you need to be prepared(either frontpage (DK) or corridor strategy (UK))

You can’t have it all (economist are expensive) and in the end libraries ask for more – because it works

European impact ?

A new perception of and debate on the role of public libraries and impact on society

- Health- Reading- Social cohesion

Thank you!!

Lotte Hviid Dhyrbye

lhd@db.dk