The Madrid Territorial Rebalancing Fund

Madrid's Territorial Rebalancing Fund (TRF) is a new policy instrument created to tackle urban vulnerability and segregation based on a sound scientific methodology, able to dynamically map social vulnerability in detail. It redistributes resources aimed at implementing feasible projects defined in the context of participative processes managed by the district councils.

Innovation Summary

Innovation Overview

Madrid has historically been characterized by a high level of territorial imbalance from the point of view of social cohesion. The reason for this is that from the 1960s onwards, social vulnerability has become concentrated in certain districts. According to academic studies (Leal y Sorando, 2015; Musterd, 2016), due to a consolidated dynamic of lack of policy attention, Madrid has become the most segregated European capital.

In 2015, the Municipality of Madrid set the achievement of social cohesion as a policy priority in its agenda, building on an approach of territorial solidarity. To realise this, a new urban policy instrument was created: the Territorial Rebalancing Fund (TRF), based on a solid scientific methodology (AHP, Analytic Hierarchy Process) that is able to map social vulnerability in detail, taking into account the complex and changing nature of this concept. The TRF pursues 3 main objectives:

1. To advance in the social cohesion and territorial balance by introducing and consolidating the principles of co-responsibility and inter-territorial solidarity in the policy approach of the city of Madrid.

2. To address the needs of the most vulnerable neighbourhoods, assuming an integrated approach (social, environmental and economic) implemented through viable projects.

3. To foster the participation of the local community through an inclusive strategy that aims to integrate the voice of the most vulnerable social groups in the process.

The TRF is acting on three different levels:

1. Mapping and understanding the concentration of vulnerability in the different districts based on a sound diagnosis, specifically designed to take into account the multidimensional nature of social vulnerability, and able to be used as an evaluation tool as well.

2. Acting with an area-based approach on the basis of the results in the most disadvantaged districts, but also addressing social vulnerability on the neighbourhood scale when it is present in the richest districts. The TRF concentrates financial, technical, and governmental resources, creating a multidimensional leverage effect aimed at reversing the negative dynamic described before.

3. Acting with a people-based approach, prioritizing the needs identified by the local community in the context of participative processes in which the gender factor is present.

The TRF interventions are classified in 4 groups, in which the number of interventions and the annual budget are noted.

1. Social, cultural, and educational interventions: 2016: 1,903,345 €: 19 interventions. 2017: 8,289,565 €: 66 interventions.

2. Public Housing, in which the main partner is the sectorial agent EMVS (autonomous municipal housing development company) 2016: 4.045.000 €, 8 interventions. 2017: 8.310.010 €, 14 interventions.

3. Employment, training and insertion in the labour market, in which the main partner is the sectorial agent ApE (municipal employment agency) 2016: 11,226,059 €: 12 interventions. 2017: 15,167,312 €: 36 interventions

4. Urban Development, public spaces and urban facilities: 2016: 4,764,805 €: 13 interventions. 2017: 42,252,766 €: 95 interventions.

The TRF is achieving concrete results in the neighbourhoods in which it is acting through an integrated urban regeneration approach that encompasses economic, social and environmental action, framed in the context of participative processes where the specific measures are discussed and agreed on by all the relevant stakeholders and the local community. This results in effective and feasible projects that are reducing social vulnerability by adopting a placebased and people-based approach with a gender perspective. These projects are developing local capacity and making neighbourhoods resilient to social vulnerability. The TRF is also providing the Municipality with an important knowledge base on how local governance (multi-level and interdepartmental) might be improved, particularly in the context of the current decentralization process. Some of its elements are being integrated in other local policies and the whole instrument is being transferred both nationally and internationally. Within Spain, it has been transferred to be replicated in the city of Oviedo (the capital city of the autonomous region of Asturias, with 220,000 inhabitants) and in the Spanish Municipalities and Provinces Federation (FEMP), an association that assembles 7.324 Spanish municipalities, as well as provincial and island councils. Internationally, it has been transferred to Buenos Aires, the capital of Argentina. Moreover, the TRF is coherent and is contributing notably to the implementation of Spain’s 2016 New Urban Agenda and Pact of Amsterdam (Urban Agenda for the EU) commitments.

Innovation Description

Innovation Development

Innovation Reflections

Leave a Reply

Your email address will not be published. Required fields are marked *

Year: 2016
Level of government: Local government


  • Implementation - making the innovation happen

Innovation provided by:

Join our community:

It only takes a few minutes to complete the form and share your project.