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The Boston Consulting Group Assessment (2007)
In 2007, led by Senior Partner David Pecaut, the Boston Consulting Group (BCG) released an analysis of the cost/benefit of the Pathways program to society, and worked alongside leaders from the private and public sectors to develop a strategic plan to expand the program across Canada.
The work included quantifying the societal return on investment, developing a public-private funding model to support the expansion, and building an organizational capacity to support the sustainable growth of the program.
The BCG analysis found that the Pathways program provides tremendous economic returns to society. The focus of the analysis was on identifiable and quantifiable benefits, primarily higher taxes paid (on higher incomes earned) and reduced government transfer payments. Conclusions about the program’s direct impact on society include:
- a return on investment of $25 for every dollar invested
- a net present value to society of $50,000 for every student enrolled
- a cumulative lifetime benefit to society $400,000 for each graduate
The findings also indicate a dramatic increase in the overall quality of life in Regent Park during the last six years, including a decrease of 75 per cent in teenage pregnancy rates and a significant reduction in violent crime and property crime reports in the community and adjacent neighbourhoods.
The BCG study also found that Pathways contributed significantly to social cohesion and the integration of immigrants, who make up 60 per cent of the population of Regent Park, in which 79 per cent of residents are visible minorities.
"Pathways is one of the most successful programs we have found anywhere in North America in enabling youth from low income neighbourhoods to graduate high school and attend college and university. The results are dramatic for the students and their families. The payback to society as a whole is also tremendous.”
– David Pecaut, Senior Partner, BCG |
