Social cohesion in Europe is under strain due to deepening inequalities, exclusion, and growing ethnic tensions. Cultural literacy—developed through arts-based education—offers a way to foster intercultural dialogue and understanding. The Cultural Literacies' Value in Europe (CLiViE) project, funded by the European Union’s Horizon Europe Research and Innovation Programme, applies a Theory of Change (ToC) methodology and Social Return on Investment (SROI) framework to assess the impact of cultural literacy on social cohesion. However, conducting an SROI analysis in this context presents challenges, as measuring the intangible benefits of cultural dialogue and inclusion requires innovative evaluation methods.

As part of the CLiViE project, 28 case studies are being conducted among children and young people in different European countries to test the methodology for determining SROI. One of the 28 case studies is "The Other in Art and Life", conducted in Daugavpils, Latvia. The study promotes intercultural dialogue among Latvian and Russian-speaking youth, addressing historical and political divisions worsened by the war in Ukraine. Through workshops, discussions, and participatory research, young participants (ages 16-18) develop collaboration skills and cultural awareness through art. Assessing the impact of cultural literacy requires measuring intangible benefits such as increased tolerance, empathy, and participation in cultural activities. The study employs pre- and post-questionnaires, focus groups, and stakeholder interviews to gather both qualitative and quantitative data. Emotional cartography and participatory research methods provide innovative ways to capture shifts in attitudes and engagement.

The project’s outcomes include fostering sustainable intercultural dialogue, strengthening collaboration between communities, and enhancing social cohesion in Daugavpils. By addressing the challenges of measuring the value of cultural literacy, "The Other in Art and Life" provides insights for arts-based education across Europe, reinforcing the role of cultural institutions in bridging societal divides. The study culminates in an exhibition of youth artworks during Museum Night, showcasing the potential of art as a medium for fostering understanding and cooperation.

Keywords: Social cohesion, Cultural literacy, Intercultural dialogue, Social Return on Investment (SROI), Arts-based education.