Introduction to Solidarity Economy

Introduction to solidarity Introduction to solidarity economyeconomy

- Another economy is possible - Another economy is possible --

Miguel Yasuyuki HirotaMiguel Yasuyuki Hirota

[email protected]@olccjp.nethttp://www.olccjp.net/ http://www.olccjp.net/

Kuala Lumpur, 14Kuala Lumpur, 14thth Feb 2011 Feb 2011

ContentsContents

Self-introductionSelf-introduction What is the Solidarity Economy What is the Solidarity Economy

(SE)?: Democratisation of our (SE)?: Democratisation of our economyeconomy

SE’s development all over the worldSE’s development all over the world Key strategies for SE’s further Key strategies for SE’s further

developmentdevelopment

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My self-introductionMy self-introduction Originally student of Latin America:Originally student of Latin America: good at good at

Spanish and PortugueseSpanish and Portuguese 1999: learned about 1999: learned about complementary currencies complementary currencies

> Researches on global experiences, 3 books > Researches on global experiences, 3 books already published in Japanesealready published in Japanese

2001: visited Argentina and learned about barter 2001: visited Argentina and learned about barter clubs: a local professor clubs: a local professor taught me SEtaught me SE

Have given presentations in different countriesHave given presentations in different countries (Argentina, Brazil, Colombia, Ecuador, France, (Argentina, Brazil, Colombia, Ecuador, France, South Korea, Malaysia, Mexico, New Zealand, the South Korea, Malaysia, Mexico, New Zealand, the Philippines, Portugal, Spain, Taiwan, Thailand)Philippines, Portugal, Spain, Taiwan, Thailand)

OLCCJP:OLCCJP: http://www.olccjp.net/ http://www.olccjp.net/ Also work for Also work for SE’s promotionSE’s promotion

OLCCJPOLCCJP

http://www.olccjp.net/http://www.olccjp.net/

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What is Solidarity? (1)What is Solidarity? (1)

What does “solidarity” mean?What does “solidarity” mean? Solidarity:Solidarity: a word quite commonly used in a word quite commonly used in

French, Spanish and Portuguese but not so French, Spanish and Portuguese but not so much in Englishmuch in English

Meaning: Meaning: ”Circumstantial adhesion to others’ ”Circumstantial adhesion to others’ cause or enterprise” cause or enterprise” (Real Academia Española)(Real Academia Española)

Other definitions: Other definitions: ”A horizontal relationship ”A horizontal relationship among those who build up a group, an among those who build up a group, an association or a community under the association or a community under the conditions of equality” conditions of equality” which is built which is built ”because ”because of the force or intensity of mutual cohesion”of the force or intensity of mutual cohesion”, , i.e. i.e. ”particularly committed and determined ”particularly committed and determined bond”bond” (Luis Razeto) (Luis Razeto)

What is Solidarity? (2)What is Solidarity? (2)

Some people have gone away from the original Some people have gone away from the original meaning: meaning: What is the original use for the word What is the original use for the word “solidarity”? (Luis Razeto)“solidarity”? (Luis Razeto)

a)a) solidness of the group’s interaction which leads solidness of the group’s interaction which leads to build the fact or the reality of solidarityto build the fact or the reality of solidarity

b)b) equal situation and commitment or duty among equal situation and commitment or duty among all the solidarity-based participantsall the solidarity-based participants

c)c) everybody’s relationship through mutuality, everybody’s relationship through mutuality, reciprocity and participation in a group or reciprocity and participation in a group or communitycommunity

d)d) intensity of mutual union as something strong, intensity of mutual union as something strong, defined, established by true causesdefined, established by true causes

e) e) the stable (not occasional) and permanent the stable (not occasional) and permanent character of solidarity-based cohesioncharacter of solidarity-based cohesion

False-friends of SolidarityFalse-friends of Solidarity

““False-friends” of solidarity: False-friends” of solidarity: understanding understanding them as solidarity undermines the very them as solidarity undermines the very principle of solidarityprinciple of solidarity

Excessive assistance: Excessive assistance: disturbs people’s disturbs people’s autonomyautonomy

Charity donations: Charity donations: occasional and not based occasional and not based on the principle of equal commitmenton the principle of equal commitment

Use of the word SolidarityUse of the word Solidarityin the Western historyin the Western history

Middle Ages: Middle Ages: Only meant the strong Only meant the strong relationship within a guildrelationship within a guild

19th and 20th century: 19th and 20th century: Used both by labour Used both by labour unionsunions (for common cause and shared (for common cause and shared interested on the basis of mutual help)interested on the basis of mutual help) and and the Church the Church (fraternity among “children of (fraternity among “children of God”)God”)

Sociology: Durkheim found out thatSociology: Durkheim found out that the the more individualist the modern society turns more individualist the modern society turns to be, the more solidarity are sought for to be, the more solidarity are sought for as as we’re getting more and more we’re getting more and more interdependentinterdependent

What’s solidarity economy?What’s solidarity economy? What is the non-solidarity economy (capitalism)?What is the non-solidarity economy (capitalism)? Maximisation of profits for shareholdersMaximisation of profits for shareholders > >

environmental protection and workers are of environmental protection and workers are of secondary importance, strengthened by the secondary importance, strengthened by the neoliberalismneoliberalism

G. Soros: “International trade and global financial G. Soros: “International trade and global financial markets are very good at generating wealth, markets are very good at generating wealth, but but they cannot take care of other social needsthey cannot take care of other social needs, such as , such as the preservation of peace, alleviation of poverty, the preservation of peace, alleviation of poverty, protection of the environment, labour conditions, or protection of the environment, labour conditions, or human rights – human rights – what are generally called ‘public what are generally called ‘public goods’goods’” (On Globalization, 2003)” (On Globalization, 2003)

SE:SE: economy which allows workers and consumers economy which allows workers and consumers to take part in its management (civil society to take part in its management (civil society economy) > democratisation of economyeconomy) > democratisation of economy

Democratisation of labourDemocratisation of labour

Workers’ coopWorkers’ coop: businesses possessed and : businesses possessed and run horizontally by their own workers. No run horizontally by their own workers. No employer hires no employee thereemployer hires no employee there

Social enterprisesSocial enterprises: those businesses which : those businesses which preferentially employ the handicapped, preferentially employ the handicapped, long-term unemployed people and others long-term unemployed people and others who find it hard to get hired, although as who find it hard to get hired, although as wholly democratised as workers’ coopswholly democratised as workers’ coops

Democratisation of Democratisation of consumptionconsumption

Shopping huge corporations’ goods at Shopping huge corporations’ goods at mallsmalls: cheap and convenient, but…: cheap and convenient, but…

Consumers’ coopConsumers’ coop: allows consumers to get : allows consumers to get what they want (especially organic food)what they want (especially organic food)

Teikei (CSA)Teikei (CSA): a system in which consumers : a system in which consumers help farmers in different ways (sometimes help farmers in different ways (sometimes they visit farms to work there)they visit farms to work there)

Fair tradeFair trade: improvement of farmers’ life : improvement of farmers’ life standard by paying a fair price for their standard by paying a fair price for their producesproduces

Democratisation of finance / Democratisation of finance / moneymoney

Where will our money go when we deposit it Where will our money go when we deposit it at commercial banks?at commercial banks?: You’ll never know : You’ll never know which businesses are financed by the bank which businesses are financed by the bank you put moneyyou put money

Ethical banksEthical banks: savers can decide which : savers can decide which project to financeproject to finance

Social currenciesSocial currencies: use of parallel means of : use of parallel means of exchange to stimulate local economyexchange to stimulate local economy

Democratisation of Democratisation of the public sector’s budgetthe public sector’s budget

To whom does the money at KL City Hall belong?To whom does the money at KL City Hall belong? Of course residents at KLOf course residents at KL Participatory budgetParticipatory budget: KL residents make decisions : KL residents make decisions

on how to spend the KL City Hall’s budget!!on how to spend the KL City Hall’s budget!! Started in Porto Alegre, Brazil and later spread Started in Porto Alegre, Brazil and later spread

into other Latin American and European countriesinto other Latin American and European countries

Democratisation of knowledgeDemocratisation of knowledge

Different ITDifferent IT: stimulates access to a bunch of : stimulates access to a bunch of information and international intellectual information and international intellectual exchangesexchanges

Basic software such as OS (especially Microsoft Basic software such as OS (especially Microsoft Windows) and Microsoft OfficeWindows) and Microsoft Office: Microsoft enjoys : Microsoft enjoys the monopoly on what is essential for our digital the monopoly on what is essential for our digital lifelife

FreewareFreeware: software produced without the aim to : software produced without the aim to make profits > introduction of IT in a more make profits > introduction of IT in a more democratic waydemocratic way

SummarySummary Ethical banks:Ethical banks: savers decide whom to finance savers decide whom to finance Workers’ coop:Workers’ coop: workers = owners run the workers = owners run the

businessbusiness Consumers’ coop:Consumers’ coop: provides what members provides what members

wantwant Social enterprises:Social enterprises: hires the handicapped, long- hires the handicapped, long-

term unemployed etc. for their social inclusionterm unemployed etc. for their social inclusion Fair trade:Fair trade: consumers support economic consumers support economic

activities without exploiting farmersactivities without exploiting farmers Participatory budget:Participatory budget: KL people decide how to KL people decide how to

spend KL City Hall’s budgetspend KL City Hall’s budget Social currency:Social currency: civil society control money = civil society control money =

means of exchangemeans of exchange Freeware:Freeware: indispensable software (like OS and indispensable software (like OS and

Open Office) available for freeOpen Office) available for free

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Global developmentGlobal development

Latin Europe (France, Italy & Spain), Latin Europe (France, Italy & Spain), Québec:Québec: the concept of the concept of social economysocial economy (coops, non-profits, mutual unions, (coops, non-profits, mutual unions, foundations) exists since 1960s, allowing foundations) exists since 1960s, allowing some room for non-capitalist economiessome room for non-capitalist economies

Latin America:Latin America: neoliberalism since 1980s > neoliberalism since 1980s > widening income gap > different economic widening income gap > different economic activities to struggle against poverty > SEactivities to struggle against poverty > SE

RIPESS RIPESS （（ 1997-), World Social Forum 1997-), World Social Forum (2001-), Alliance 21 > ALOE(2001-):(2001-), Alliance 21 > ALOE(2001-): strengthens exchanges between Latin strengthens exchanges between Latin Europe, Latin America and other parts of Europe, Latin America and other parts of the worldthe world

Extension to non-Latin countries:Extension to non-Latin countries: Asia, Asia, Africa, Canada, US, Germany, AustriaAfrica, Canada, US, Germany, Austria

Regional developmentsRegional developments Brazil:Brazil: National Secretary of Solidarity National Secretary of Solidarity

EconomyEconomy (SENAES) and (SENAES) and Brazilian Forum of Brazilian Forum of Solidarity Economy Solidarity Economy (FBES) promotes SE(FBES) promotes SE

Asia:Asia: 1 1stst Forum in Oct 2007 at Manila, 2 Forum in Oct 2007 at Manila, 2ndnd Forum in Nov 2009 at Tokyo and 3Forum in Nov 2009 at Tokyo and 3rdrd Forum Forum in Nov 2011 at KL. in Nov 2011 at KL. Asian Alliance for Asian Alliance for Solidarity Economy Solidarity Economy (AA4SE)(AA4SE)

US:US: the 1 the 1stst US Social Forum in June 2007 at US Social Forum in June 2007 at Atlanta highlighted SE, 1Atlanta highlighted SE, 1stst US Forum of SE US Forum of SE at Amherst, MA in March 2009, some at Amherst, MA in March 2009, some discussions at the 2discussions at the 2ndnd US Social Forum at US Social Forum at Detroit last JuneDetroit last June

Spain:Spain: REAS provides information about SE REAS provides information about SE in Spain and Latin Americain Spain and Latin America

FBESFBES

http://www.fbes.org.br/ http://www.fbes.org.br/ （（ in Portuguese)in Portuguese)

CIRANDASCIRANDAS

A SNS for SE players in Brazil.A SNS for SE players in Brazil. http://www.cirandas.net/ http://www.cirandas.net/ （（ in in PortuguesePortuguese ））

Dilma Roussef (president of Dilma Roussef (president of Brazil)Brazil)

Dilma’s promises (1)Dilma’s promises (1) 1:1: Consolidate the integration of the National Consolidate the integration of the National

Policy of Solidarity Economy with Brazil’s Policy of Solidarity Economy with Brazil’s sustainable development strategies sustainable development strategies

2: 2: Constitute the National System of Solidarity Constitute the National System of Solidarity Economy to stimulate the strengthening of SE Economy to stimulate the strengthening of SE and to enable the articulation among different and to enable the articulation among different levels of the governmentlevels of the government

3: 3: Ensure resources for financing programmes Ensure resources for financing programmes and actions to SE enterprisesand actions to SE enterprises

4:4: Complete legal instruments which make SE Complete legal instruments which make SE enterprises feasible and facilitate their enterprises feasible and facilitate their formalisationformalisation

5:5: Promote an institutional atmosphere Promote an institutional atmosphere favourable for the development of SE, favourable for the development of SE, completing the procedure to access to public completing the procedure to access to public resources, credit and formalisation of resources, credit and formalisation of enterprisesenterprises

Dilma’s promises (2)Dilma’s promises (2) 6:6: Complete the access to the knowledge and to Complete the access to the knowledge and to

the technology:the technology:- Nurture technology and innovation targeted for - Nurture technology and innovation targeted for the SE, underlining social technology projects;the SE, underlining social technology projects;- Promote policies of training, technical - Promote policies of training, technical assessment and professional qualification which assessment and professional qualification which are adequate to the SE enterprises;are adequate to the SE enterprises;- Broaden the access to the education, at all the - Broaden the access to the education, at all the levels, of the workers of SE enterpriseslevels, of the workers of SE enterprises

7:7: Develop and nurture mechanisms of solidarity Develop and nurture mechanisms of solidarity finance which are adequate to the financing of finance which are adequate to the financing of working capital, of costs and for the purchase of working capital, of costs and for the purchase of equips and infrastructure of SE enterprisesequips and infrastructure of SE enterprises

8:8: Nurture initiatives of SE commercialisation Nurture initiatives of SE commercialisation and strengthen mechanisms which facilitate the and strengthen mechanisms which facilitate the access to the public purchases of goods and access to the public purchases of goods and servicesservices

Dilma’s compromises (3)Dilma’s compromises (3) 9:9: Develop the SE as policy for productive inclusion, Develop the SE as policy for productive inclusion,

economic emancipation and generation of work and economic emancipation and generation of work and income targeted to the public benefitting from social income targeted to the public benefitting from social programmes programmes

10: 10: Recognise and nurture the SE in the strategies of Recognise and nurture the SE in the strategies of international integration, especially in Latin America international integration, especially in Latin America (Mercosur and Unasur) and Africa(Mercosur and Unasur) and Africa

11: 11: Strengthen the interdisciplinarity of public policies of Strengthen the interdisciplinarity of public policies of the SE in articulation with the different sectors and the SE in articulation with the different sectors and policies of the governmentpolicies of the government

12:12: Give continuity to the completion of government Give continuity to the completion of government policies for the SE, warranting resources and investing in policies for the SE, warranting resources and investing in the capacity for the elaboration, management and the capacity for the elaboration, management and execution of public policies for this sectorexecution of public policies for this sector

13:13: Strengthen the National Council of Solidarity Strengthen the National Council of Solidarity Economy as promoter of the National Conferences of Economy as promoter of the National Conferences of Solidarity Economy and of the participation, of the social Solidarity Economy and of the participation, of the social control and accompanying of policies and programmes control and accompanying of policies and programmes of SEof SE

Asian Alliance forAsian Alliance forSolidarity Economy Solidarity Economy

(AA4SE)(AA4SE)

http://www.aa4se.com/http://www.aa4se.com/

U.S. Solidarity Economy U.S. Solidarity Economy Network (SEN)Network (SEN)

http://www.populareconomics.org/ussen/http://www.populareconomics.org/ussen/

REAS (Spain)REAS (Spain)

http://www.economiasolidaria.org/ http://www.economiasolidaria.org/ (in Spanish)(in Spanish)

11stst SE Social Forum SE Social Forum

Took place from 22Took place from 22ndnd to 24 to 24thth Jan 2010 at Santa Jan 2010 at Santa Maria, RS, Brazil, followed by the World Social Maria, RS, Brazil, followed by the World Social Forum at Porto Alegre, RSForum at Porto Alegre, RS

Hundreds of participants, mainly from Brazil Hundreds of participants, mainly from Brazil and neighbouring countries but also from and neighbouring countries but also from USUS and and EuropeEurope

WSF and SEWSF and SE: have grown by reciprocal : have grown by reciprocal exchangesexchanges

Brazil is leading SE:Brazil is leading SE: neighbours asking for help neighbours asking for help South-South fair trade:South-South fair trade: not only North-South not only North-South Coordination of public policies:Coordination of public policies: to promote SE to promote SE Mapping of practices: Mapping of practices: what is practiced where?what is practiced where? 22ndnd Forum: to take place in July 2012 Forum: to take place in July 2012





SE in JapanSE in Japan Consumer’s coops:Consumer’s coops: annual turnover of 3.4 trillion annual turnover of 3.4 trillion

yen (125 billion ringgits, 2.82% of retail industry)yen (125 billion ringgits, 2.82% of retail industry) Workers’ coops:Workers’ coops: hires 11,000 people all over hires 11,000 people all over

Japan, annual turnover of 25.7 billion yen (about Japan, annual turnover of 25.7 billion yen (about 950 million ringgits)950 million ringgits)

Food security:Food security: CSA, nutrition-education CSA, nutrition-education programmes, local production and consumptionprogrammes, local production and consumption

Elderly care:Elderly care: non-profits all over the country non-profits all over the country

What’s at stake in JapanWhat’s at stake in Japan Lack of self-identity as SE players:Lack of self-identity as SE players: no no

promotional activities by SE players > lack promotional activities by SE players > lack of relationship with international of relationship with international movementsmovements

Lack of national network:Lack of national network: there exists no there exists no network to include the whole SE players > network to include the whole SE players > virtually no influence at all on the Japanese virtually no influence at all on the Japanese societysociety

SE by the high-middle class:SE by the high-middle class: plenty of plenty of activities by the well-off (consumers’ coop activities by the well-off (consumers’ coop and elderly care) while little is done against and elderly care) while little is done against povertypoverty

Social enterprises in East AsiaSocial enterprises in East Asia South Korea:South Korea: Social Enterprise Promotion Social Enterprise Promotion

Act implemented in 2007, with hundreds of Act implemented in 2007, with hundreds of social enterprises being recognised by the social enterprises being recognised by the gov’tgov’t

Hong Kong:Hong Kong: organises Social Enterprise organises Social Enterprise Summit since 2008 http://www.social-Summit since 2008 http://www.social-enterprise.org.hkenterprise.org.hk//

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For further development of SE in For further development of SE in AsiaAsia

Need for national networks:Need for national networks: to link different to link different stakeholders and stakeholders and share the identity of “SE share the identity of “SE players”players”

SOLECOPEDIA:SOLECOPEDIA: a wiki on SE a wiki on SE Linkage with Latin America:Linkage with Latin America: South-South South-South

cooperationcooperation

Need for national networksNeed for national networks Identity as SE player:Identity as SE player: need to work not only need to work not only

at their own field (fair trade, ethical finance at their own field (fair trade, ethical finance etc.) but also for a wider perspective of SEetc.) but also for a wider perspective of SE

Sharing info:Sharing info: sharing news on what’s sharing news on what’s happening all over the world, such as happening all over the world, such as webinarwebinar

Interdisciplinary exchanges:Interdisciplinary exchanges: ethical banks, ethical banks, fair trade, consumers’ coops, workers’ fair trade, consumers’ coops, workers’ coops etc. exchange to build cooperationscoops etc. exchange to build cooperations

Strategies and action plans to promote SE:Strategies and action plans to promote SE: presentation of SE at related conferences, presentation of SE at related conferences, movements to formulate laws to promote movements to formulate laws to promote SE, etc.SE, etc.

SOLECOPEDIASOLECOPEDIA

http://en.solecopedia.org/http://en.solecopedia.org/

Linkage with Latin AmericaLinkage with Latin America

Latin America:Latin America: where SE has been where SE has been recognised more and more, with supports recognised more and more, with supports from gov’tsfrom gov’ts

Spanish and Portuguese:Spanish and Portuguese: fundamental in fundamental in keeping in touch with Latin Americanskeeping in touch with Latin Americans

Thank you for your attention!!Thank you for your attention!!

e-mail: [email protected]: [email protected]

skype: migjp2003skype: migjp2003

URL: http://www.olccjp.netURL: http://www.olccjp.net

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Introduction to Solidarity Economy