Finland is successfully fighting homelessness – despite new political developments

No more homelessness – a goal that sounds like utopian fiction may become reality soon. The “Housing First” concept in Finland, supported by NGOs like the Y-Foundation, is aiming towards the end of homelessness in 2027. In a new interview, Juha Kahila, Head of International Affairs at the Y-Foundation, talks about the implementation of “Housing First”, new developments in politics and his hopes for the future.
The “Housing First” project in Finland is still successfully reducing homelessness. Those affected by homelessness receive an apartment and additional support without any preconditions. The result: The number of people without housing is decreasing steadily since the 80s. In 2022, there were 3,686 homeless people in Finland, which is 262 less than in 2021. The aim is to end homelessness in Finland by 2027. We’ve already reported on this in a previous article.
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New developments on “Housing First” in Finland
A key stakeholder in the Finnish fight against homelessness is the Y-Foundation. The NGO has been providing housing for the homeless since 1985. It is now one of the sponsors of the “Housing First” policy in the country. It organizes housing and is the fourth largest landlord in Finland. Today, it manages 19,000 apartments throughout Finland. 7,000 of these apartments are specifically for homeless people or people who are about to become homeless.
In a recent interview Juha Kahila who works as Coordinator and Lead Coordinator of the National Housing First Development Network at the Y-Foundation is talking about the process of “Housing First”. He gives detailed information about the financial benefits of the housing project and explains the role of the Finnish government in the realization of this concept.
A new development is the election of a conservative government in 2023. Kahila believes that the success of “Housing First” is depending on whether the new government is cutting certain social benefits. But he is still hopeful that the goal of ending homelessness can be achieved. Furthermore, he thinks that organizations and political decision-makers in other countries can be inspired by the project and that this will help the countries greatly in the long term.
Interview with Juha Kahila from the Y-Foundation about the implementation of “Housing First” in Finland
Kontrast.at spoke to Juha Kahila about the successful Finnish concept and the Y-Foundation. He has been involved in helping the homeless for over 10 years and worked at the Finnish Youth Housing Association services (NALPA) before becoming its CEO. He later moved to the Y-Foundation, where he now works as Head of International Affairs. You can read the interview in German here.
Juha Kahila (Photo: Juha Kahila:Twitter)
Mr. Kahila, what does the process of the allocation of housing look like? How does a person approach you and how long does it take to get an apartment?
Juha Kahila: First of all, before a person becomes homeless, most people have already tried a lot to prevent this. If someone still loses their apartment, they can consider – together with one of our social workers – what the best housing solution and form of support is. In other words, whether it should be a single apartment with occasional support or a “Housing First” unit, i.e. an apartment in a “Housing First” complex where help is available around the clock.
At the moment, we can provide both housing and support very quickly. Only if someone wants to live in a specific “Housing First” unit they may have to wait longer for an apartment. But many people want to wait in temporary accommodation anyway and that is always possible.
Social benefits begin to flow immediately. Depending on the person’s situation, we also consider appropriate job opportunities. For example, the “Housing First” units offer low-threshold employment provision themselves.
The Y-Foundation always works together with other agencies. We provide the housing. Support, advice, social services and other services are then provided by the welfare districts and other organizations.
Common rooms – and even a sauna: This is what the “Housing First” houses look like
What do these apartments or houses look like? Are they spread throughout the city?
Juha Kahila: The apartments are mainly quite ordinary. 80 percent of the apartments are scattered around the city. The rest are in “Housing First” units, each with around 33 to 100 apartments in one building and support services on the ground floor. The apartments are equipped with a fridge, oven, etc. The residents furnish the rest themselves so that they feel at home. In the “Housing First” units, there are also communal areas where people can cook, watch TV together or just meet and chat.
Housing First Unit Väinolä in Espoo, Finland. (Foto: Y-Foundation, zVg)
There are certainly people who say it is unfair that many people have to spend a large part of their income on housing, while others simply get it “for free”. What do you say to them?
Juha Kahila: The answer is that housing is a human right. If that’s not enough of an argument, we explain that it actually saves money to provide housing in this way – and to avoid people having to sleep in emergency accommodation or on the street. We explain that the city is also safer for everyone if we really take care of everyone.
Besides, nothing is given away for free, people pay rent for their apartments. Of course, in the early stages most of them pay their rent through various social benefits. But a permanent home gives them the chance to contribute more again.
You and the Y-Foundation say that it is cheaper for the state to provide housing for the homeless than to have them remain in their situation. What does this calculation look like?
Juha Kahila: It’s true that ending homelessness saves money in the long run. The reason behind this is that people don’t have to use expensive emergency services. They spend fewer nights in prison, they less often need police or legal services and so on. In Finland, we have calculated that the savings are around 15,000 euros per person per year if they get housing instead of being left in shelters or on the streets.
Once people have a home and the help they need, the resources that are needed for the other shelters and services are freed up. In addition, homeless people become taxpayers again in the long run – but we haven’t even included that in our calculation.
Overall, the effects are multifaceted. We studied this in Finland and there are studies worldwide that show the same result: It is always cheaper to house people with support than to leave them in emergency shelters or on the streets.
The initiative for “Housing First” came from the Finnish government
In Finland, there is a lot of political support for the “Housing First” approach. How did this come about – who convinced whom?
Juha Kahila: The “Housing First” model was inherently a political decision in Finland. It worked differently here than in many other countries, where organizations and other stakeholders had to explain to politicians why it makes sense. In Finland, politicians had to convince the stakeholders! With carrots and sticks, so to speak.

The politicians said: We want to change the system. If you are on board, we will help you with the renovation of the apartments. If you’re not on board, we won’t buy the accomodation you provide. So, there has been a ‘gentle push’.

However, we currently have a government that wants to cut social benefits and build less affordable housing in the future. Of course, this presents us with challenges. But we are not despairing, we are working with the tools we have.
What about other countries: Do NGOs or political representatives come to you to learn from your experience with “Housing First”?
Juha Kahila: Yes, we get several hundred visitors every year and many of them are political decision-makers: Ministers, mayors and EU decision-makers. In addition, many groups come and get inspiration for their own work.
Do you know of any comparable international projects?
Juha Kahila: There is currently great work on this in Denmark and Austria and I believe that this will benefit the countries greatly in the long term.
No one should be homeless by 2027 – Helsinki wants to achieve this goal by 2025
The Finnish government wants to eliminate homelessness completely by 2027. Will that work out?
Juha Kahila: That depends on the decisions of the current government. If not all the cuts are implemented, I firmly believe that it will be possible to end homelessness by the end of 2027.
Helsinki has an even more ambitious goal: the city wants to end homelessness by the end of 2025. They also have an excellent program, so this goal can also be achieved.
Are there also criticisms of “Housing First” and if so, from whom?
Juha Kahila: Sometimes, yes. Mostly from people who think that “Housing First” is only about housing and who don’t realize that other forms of support are an essential part of the model. Of course, we all need to do a better job in the future to reduce these prejudices.
What motivates you personally to work at the Y-Foundation?
Juha Kahila: The foundation really wants to change the world and is taking concrete measures to do so. Reducing homelessness worldwide is a goal that I can easily and happily support. We want to do everything we can to ensure that one day everyone has a home.
Is there a story of a person that you particularly remember and would like to share?
Juha Kahila: I used to be a social worker and worked with a young man for several years. At some point, he no longer needed support and was ready to live independently. This fall, after several years, he suddenly called to let me know that he had become a father and that he really wanted to tell me about it. The thought of that always makes me smile.
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Finland is successfully fighting homelessness – despite new political developments

No more homelessness – a goal that sounds like utopian fiction may become reality soon. The “Housing First” concept in Finland, supported by NGOs like the Y-Foundation, is aiming towards the end of homelessness in 2027. In a new interview, Juha Kahila, Head of International Affairs at the Y-Foundation, talks about the implementation of “Housing […]

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Historic decision forces corporations to pay minimum of 15% tax globally

Multinational corporations such as Amazon, Facebook and Apple will now have to pay a minimum global tax of 15%. Even hiding their profits in tax havens won’t help. They will have to pay tax where they generate their profits, not where they produce or where they have their fictitious headquarters. This has been agreed by […]

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Historic decision forces corporations to pay minimum of 15% tax globally

Multinational corporations such as Amazon, Facebook and Apple will now have to pay a minimum global tax of 15%. Even hiding their profits in tax havens won’t help. They will have to pay tax where they generate their profits, not where they produce or where they have their fictitious headquarters. This has been agreed by 138 countries after years of negotiation. This global tax is now coming into force – a “reform of the century” on the road to fair taxation.
OECD countries and the G20 nations have been negotiating global tax justice for more than ten years. In 2021, 138 of the 141 countries agreed on a two-pillar reform; a minimum tax rate of 15% and a tax shift away from the place of production to the place where profits are made. The regulation will come into force in January 2024.
The basic idea is simple. If profits in tax havens are taxed at a higher rate, it pays less for companies to shift their profits there. This won’t only effect stereotypical tax havens such as the Caribbean islands, where there is often no corporation tax at all. Tax havens within the EU, such as Ireland with 12.5% corporation tax or Hungary with 9%, are also set to be hit.
“The principle of paying taxes where profits are generated is gaining acceptance and a common tax rate of 15 per cent puts a stop to destructive downward tax competition,” says Evelyn Regner. The MEP (Social Democratic Party of Austria) has been campaigning for fairer taxation of corporations at the European level for years.
Despite criticism that China and the USA are not on board, and that a global tax rate of 15% is too low, there has never been a comparable regulation before.
“For the first time in the history of taxation, states are being given the right to tax profits generated in other states according to agreed rules,” write tax experts Prof Dr Deborah Schanz and Dr Ulrike Schramm.

A MINIMUM TAX RATE OF 15 % COULD BRING IN AN ADDITIONAL 220 BILLION DOLLARS
The minimum tax rate will apply to all groups with an annual turnover of more than 750 million euros – regardless of whether the parent company or only one subsidiary is based in an EU member state. This affects around 7,000 to 8,000 companies worldwide and, according to OECD calculations, is likely to generate around 200 billion dollars in additional taxes.
For Austria, the tax office is expecting 100 million euros in additional revenue from 2026. According to economist and head of the tax department at the Vienna Chamber of Labour, Dominik Bernhofer, this could even amount to 200 to 300 million euros per year. In the long term, it could be even more, as there will be less profit shifting and tax competition. Together with his colleague Professor Matthias Petutschnig from the University of Vienna, Bernhofer looked at 19 of the largest Austrian companies. These include the cardboard group Mayr-Melnhof, banks such as Erste Bank and Raiffeisen, Vöst and Andritz. According to them, these 19 companies alone would have to pay a good 130 million euros more per year.
AUSTRIAN PEOPLE’S PARTY REPEATEDLY OPPOSED TRANSPARENCY DIRECTIVES AT EU LEVEL
Conservative and liberal governments in Europe have been resisting tighter taxes for corporations for years. The Irish government, for example, once declared that it did not want Apple to pay any back taxes, even though this would be necessary under EU law. Austria’s Austrian People’s Party (ÖVP) finance ministers are also taking part in the blockade games. Back in 2018, the then ÖVP Finance Minister Löger blocked tax disclosure by large corporations at EU level. His predecessor Schelling – also ÖVP – also blocked the EU’s planned financial reporting obligation for large corporations in 2016.
The Austrian parliament decided in 2019 that Austria should campaign for more transparency and tax disclosure, no matter who is finance minister in the future. Despite this decision, Austria abstained from another vote at EU level in 2021, once again preventing a push for greater tax transparency. The Finance Minister at the time was Gernot Blümel (ÖVP).
This work is licensed under the Creative Common License. In case of new republication, please cite Kontrast.at/Ingo Geiger as the Source/Author and set a link to the article in English: https://thebetter.news/global-minimum-tax-rate/

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Colombia strengthens regional economies and promotes cooperation instead of competition

Latin America is emerging as the place to look for alternatives to the neoliberal economic system. In Colombia, the Gustavo Petro led government has spent the last year restructuring the previously isolated sector of small businesses and cooperatives. Petro wants to shift away from this model, and into a solidarity-based system.  The German-language Latin America […]

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Colombia strengthens regional economies and promotes cooperation instead of competition

Latin America is emerging as the place to look for alternatives to the neoliberal economic system. In Colombia, the Gustavo Petro led government has spent the last year restructuring the previously isolated sector of small businesses and cooperatives. Petro wants to shift away from this model, and into a solidarity-based system. 
The German-language Latin America news portal amerika21 reports that the establishment of a solidarity sector is intended to promote small domestic companies in Colombia. These companies include coffee producers, food vendors, artists and small businesses in the construction sector. The Colombian government has already initiated solidarity-based associations of micro-businesses in eleven regions, with a total of 33 of these projects planned. At a year-end meeting in Ibagué, 3,200 organisations celebrated the development of the solidarity economy in the country.
NEW ECONOMIC APPROACH: COOPERATION INSTEAD OF COMPETITION
The co-operatives, small businesses and small-scale farmers in the eleven regions have joined together to form so-called circuits. This means that, based on the interactions between their products and services, the businesses have also formed cross-sector networks. For example, the “Circuit for Industry, Trade and Tourism” has been created in the northern department of La Guajira and the “Circuit for Tourism and Renewable Energies” in the desert region of Tatacoa.
In the “Solidarity Network of Coffee” (Cafesol) in the department of Huila, small coffee farmers can now join forces instead of competing against each other.
PETRO WANTS TO FAVOUR COOPERATIVES FOR CONTRACTS
Last year, the government department for solidarity organisation in Colombia launched a project to create a solidarity sector. Initially, the department organised local meetings on the topic of the solidarity economy, where small-scale farmers, cooperatives and micro-enterprises could get to know each other and exchange ideas. Entrepreneurs were then trained to take on leadership positions in an educational programme. This enabled existing cooperatives to be strengthened and new cycles to be established.
President Gustavo Petro emphasises the strategic importance of the solidarity sector for the economy in Colombia:
“We want associations of small shopkeepers alongside the financial cooperatives. We want associations of small potato farmers who join forces to obtain subsidised loans so that they can begin the light industrialisation of their products.”
In addition, 30% of state contracts will no longer be carried out by large companies in future. Rather, they will be taken by joint co-operatives. This applies to projects such as road construction. The mergers of small companies therefore make it possible to complete larger contracts, which in turn generates more profit for the sector.
SOLIDARITY-BASED ECONOMY INSTEAD OF NEOLIBERALISM
The Colombian government under the presidency of Gustavo Petro shows that there are alternatives to the neoliberal model. Instead of emphasising competition, the economy is to be geared more towards a principle of solidarity by promoting the cooperative sector. The project suggests that it is possible to strengthen the local economy with the help of small businesses and cooperatives. With the development of a solidarity-based sector, small businesses can be maintained and further developed collectively.
This work is licensed under the Creative Common License. It can be republished for free, either translated or in the original language. In both cases, please cite Kontrast.at / Anna Drujan as the original source/author and set a link to this article on Scoop.me. https://thebetter.news/colombia-promotes-economic-cooperation/

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Off the street and into a home: over 1,000 homeless in Austria get a flat

An initiative by the Austrian Ministry of Social Affairs, non-profit building associations and the Federal Working Group for Assistance to the Homeless aims to get around 1,000 homeless people into housing by September 2024. To achieve this, Austria is adopting the successful “Housing First” concept. The basic idea is simple, homeless people are given their […]

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Off the street and into a home: over 1,000 homeless in Austria get a flat

An initiative by the Austrian Ministry of Social Affairs, non-profit building associations and the Federal Working Group for Assistance to the Homeless aims to get around 1,000 homeless people into housing by September 2024. To achieve this, Austria is adopting the successful “Housing First” concept. The basic idea is simple, homeless people are given their own home – with no strings attached. It has been found that the housing first method helps 80% of homeless people involved find their way back into society.
Austria is one of the ten richest countries in the EU and yet over 20,000 people have no home. They are homeless and living on the streets. Day in, day out, they struggle to survive, especially when winter hits. In order to help these people in the long term, Austria is now switching to the successful “Housing First” model. Experts have been calling for this for a long time. Finland, for example, has drastically reduced homelessness over the last ten years with this model.
AFFORDABLE RENTAL FLATS FOR OVER 1,000 HOMELESS PEOPLE
With the “Housing First Austria – arriving at home” initiative, the Ministry of Social Affairs wants to offer over 1,000 homeless people a new home in the long term. Instead of emergency accommodation or temporary solutions, they are to be given their own flat with a tenancy agreement.
By September 2024, 512 affordable flats are to be provided by non-profit building associations for this purpose. The project is being managed by the Bundesarbeitsgemeinschaft Wohnungslosenhilfe (BAWO).
The costs for financial support, relocation and deposits are to be subsidised by the Ministry of Social Affairs with a contribution of around 6.6 million euros. The formerly homeless people pay the rent and ancillary costs themselves.
Social workers will accompany and support those affected as required. They will help with personal crises, financial matters and coping with everyday life.
“HOUSING FIRST APPROACH”: FIRST YOUR OWN FLAT, THEN EVERYTHING ELSE
The “housing first approach” is quite simple. Homeless people are first given their own flat – with no strings attached. This means that they do not have to complete any addiction programmes, use any therapeutic services or have a job. All of that can wait.
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The approach is based on the assumption that people first need security and a place to feel safe. Only then will they gradually find their way back into life and society. This seems to be the case, as international examples such as Finland, Denver and Houston show. Studies show that 80% of formerly homeless people find their way back into a stable life through this method.
The concept is actually nothing new. It has been used by several organisations for years. These include Caritas Vienna, the Neunerhaus homeless aid organisation and various women’s shelters. Experts have long been calling for the government to facilitate the approach with the required level of financial backing.
THE HOUSING FIRST CONCEPT IS CHEAPER THAN HOMELESSNESS
Giving homeless people a new home is not only more humane, but also cheaper. This is because where people are in need, emergencies happen more often. Injuries, breakdowns, assaults and rescue operations. This not only places demand on the police, health and justice systems, but also costs money.
For the state, the “housing first” concept is more favourable than ignoring the problem of homelessness.
HOMELESSNESS IN AUSTRIA
Around 20,000 people in Austria have no home. The number of unreported cases is estimated to be much higher. This is because the system only registers those who seek help and are registered. The majority of them, almost 60 per cent, live in Vienna. Vienna’s homelessness organisation assumes that almost 4,000 of them are under the age of 30.
There are many reasons for homelessness, such as unpredictable misfortunes, accidents, addictions or mental health problems, to name just the most dramatic. But homelessness can be easy to fall foul of:
“It doesn’t take a stroke of fate to become homeless. Transitional phases are often enough: A young person who has to leave their parents’ home. A separation. An expiring tenancy agreement. Anyone who has no access to affordable housing in such situations runs the risk of becoming homeless,” explains Elizabeth Hammer, Chairwoman of BAWO.
Critics of homelessness assistance often blame the individual for their own homelessness. But that would be too simplistic. After all, high inflation, rising rents and the lack of affordable housing also contribute to people ending up on the streets. Some people can simply no longer afford to live. Läs mer…

Complete success for the 4-day week in South Africa: 90% of companies want to keep it

South Africa has become the latest in a long list of 4-day week trialists. Here, the test run was a complete success. Not only the employees, but also over 90% of participating companies want to keep the reduced working hours with the same pay. This is in line with the global trend. However, one small […]

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Complete success for the 4-day week in South Africa: 90% of companies want to keep it

South Africa has become the latest in a long list of 4-day week trialists. Here, the test run was a complete success. Not only the employees, but also over 90% of participating companies want to keep the reduced working hours with the same pay. This is in line with the global trend. However, one small detail distinguishes the African country from previous tests – very few South Africans want to have Fridays off.
The test of the 4-day week in South Africa has been running since 1 March 2023. 28 South African companies and one company from Botswana took part. Most of them are in the IT, finance and recruitment sectors. But how exactly does a study like this work?
Essentially, employees only work four days a week instead of five, do the same work and receive the same salary. Unlike in most previous trials, each employee in the 29 companies was allowed to choose their own day off.
As in the previous tests, the results are consistently positive, both for the employees and for the companies.
RESULTS: LESS STRESS & BURNOUT AND MORE JOB SATISFACTION
After around six months, the first results are now available. These are similar to the results of trials already carried out in other countries. The employees report that they were:
– less stressed
– sick less often
– enjoyed going to work more than before the trial
The mood of trialists had also improved at home as a result of the reduction in working hours. The frustration and stress normally induced by a long week were not taken home from work.
The participating companies are also satisfied, as productivity has remained the same. In the long term, it could even increase as a result. This is because staff turnover fell during the test phase, i.e. fewer employees left the company during this time. This means that the company’s expertise and experience is retained.
Around 92% of the participating companies plan to retain the 4-day week. However, there is one peculiarity that distinguishes South Africa from fellow trialists. While employees in other countries mostly want Fridays off, it is not so clear in South Africa. Only around a quarter of them took Fridays off.
TEST OF THE 4-DAY WEEK IN SOUTH AFRICA IS PART OF A GLOBAL SERIES OF EXPERIMENTS
The study is part of a whole series of tests being carried out by the non-profit organisation “4 Day Week Global”. It has already been successfully implemented in several countries around the world, including Australia, Spain, Japan, the UK and Iceland. The results have been consistently positive.
Iceland is one of the first countries to de facto introduce the 4-day week following a successful test. The reduction in working hours is already a reality for almost 80% of Icelanders.
THE 4-DAY WEEK IN AUSTRIA?
In contrast to South Africa, a 4-day week test has yet to be carried out in Austria. Nevertheless, there are already some companies that have switched to the 4-day week on their own. For example, the Upper Austrian IT company Tractive. A detailed list of companies that have already opted for shorter working hours in Austria can be found here:
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