Opening Session:
Mr. Hideo Ishizuka & Ms. Yukari Shigeto
Shoko Uchida (Secretariat of AFSE)
Yoko Kitazawa (Co-chairperson of AFSE Japanese committee)
Pierre Calame (FPH, France)
Farmer’s cooperatives are very strong in Asia, as is microcredit lending, with Bangladesh leading the way. However, these efforts are not often called “solidarity economy” or thought of as parts of the same process. Also, the agricultural cooperatives are not necessarily fighting neoliberalism or practicing participatory democracy.
The concept of “social economy” began in Europe after the war, but was later eclipsed by socialism, and then in the 1990’s was revived in the name of “solidarity economy” in the face of the havoc wreaked by neoliberalism and structural adjustment programs, the collapse of socialism, and new environmental challenges.
The World Social Forums are connected to the resurgence of solidarity economy and a response to the crisis of capitalism. Solidarity economy includes a broad variety of issues dealing with work, employment, production, technology, ethical consumption, participatory budgeting, socially responsible finance, sustainable finance, social/local currencies, debt cancellation, fair trade, women, and socially responsible enterprises. Tools include microcredit, fair trade, cooperatives, debt cancellation, international regulation and more.
We need to deepen and radicalize the solidarity economy movement. Go to the roots not treat the symptoms. The global economy has become invisible – we don’t know where or how what we consume is produced, where money comes from or goes, an opaque process.
“Economics” has become an ideology rather than a discipline, we need to address the gaps in the discipline and train economists for our future.
Plenary Session 1: “Solidarity Economy from the Global Perspective”
Ben Quinones (CSRSME Asia)
Vincent Dagenais (Groupe d’economie solidaire du Quebec: GESQ)
Martine Theveniaut (Lux-09 Workshop 7)
Yvon Poirier (Canadian Community Economic Development Network: CCEDNET, RIPESS North America)
David Thompson (Jobs Australia)
Must ensure that finance serves the real economy. We can’t forget about the world food crisis, the importance of local produce and good sovereignty.
Democracy is in crisis. Start with the grassroots not the large institutions, involve the excluded, make local agreements.
Territorial approach – talk about access to land, local food production, directly linking producers and consumers. How can we transfer from the globalized growth/debt driven economy to a federated local sustainable economies approach.
With oil/gas costs and diminishing resources transportation costs of the global production chain no longer makes sense.
Next steps: learning from and listening to people already practicing solidarity economy, linking with researchers, knowledge exchange, overcome intercultural and language barriers.
“The world is enough for everyone’s needs, but not enough for everyone’s greed.”
We have to look at solidarity economy like our bodies, we have different efforts, say feet, and hands, but we have to put it all together to make a full body.
The government in Australia is now trying to quantify the contribution of the non-profit sector in Australia, actually generates $80 billion/year, employs 880,000 people, and engages 2.7 million volunteers.
The non-profit sector is substantial, but how are our outcomes? We haven’t used the financial crisis to promote solidarity economy as well as we should.
We also need to document the outcomes and impacts of solidarity economy practices.
Climate change and the end of oil will cause energy to go up having implications for food and hunger, food sovereignty more important than ever.
Question and Answer
Question about territorial communities versus interest and internet based communities. We should not forget the advocacy potential of these communities, especially around corporate accountability and lobbying in the North to change policies towards the South. Also international territorial associations, such as people around the world living in mountains facing similar problems.
Question about isolation and suicide, and how to bring these people back into society.
Comment about difficulty of linking local to international and the importance of having all the layers, linking local to regional to national to international.
Comment about the need for microfinance, fair trade, coops, international regulation advocacy and others to work together rather than individually. RIPESS is working on this.
Plenary 2: Solidarity Economy from the Asian Perspective
Reiko Inoue (Co-chair of AFSE Japanese committee)
Ben Quinones (CSRSME Asia)
Denison Jayasooria (Binary University College, Malaysia)
Ila Shah (SEWA, India)
Jang Won Bong (Korea Foundation for Social Investment, Korea)
Jun Nishikawa (Co-chair of AFSE Japanese committee, Japan)
Solidarity economy practices have been active in Asia for a long time but have not been seen together as linked. The 1st Asian Forum for Solidarity Economy in the Phillippines began this process.
CSRSME in Phillippines is promoting solidarity economy, facilitating dialogue on solidarity economy, has spun off two co-ops, has a holdings company for social enterprises, and an educational institution, International Institute for Solidarity Economy. Mobilize savings from the grassroots, co-ops, and invest in social enterprises. Approach: 1) building shared vision 2) mobilize local resources 3) link up with stakeholders, network, supply chain management 4) project management. How is solidarity economy different from the mainstream economy? It strengthens civil society. It is based on the “triple bottom line”, financial profit, social benefit, and environmental effects. “Social enterprises” as the intersection between non-profits and co-ops. Democratic ownership and a social mission, led by principles of sustainability, transparency, equity, and participatory democracy.
Malaysia experiencing economic growth and development, potential for co-op movement, growing civil society, also no minimum wage, wealth gap growing, digital divide, possibility of public sector being privatized into social enterprises.
Center for Social Entrepeneurship in Malaysia doing research and networking, rural community internet centers addressing the digital divide. Participatory approach key, need by-in from local community leaders. How to transform into a coherent political force?
SEWA in India strengthen local production and consumption, create a market within the organization for poor women’s enterprises, member-owned, concept of self-reliance, vocational training.
In Korea generally use term “social economy” instead of “solidarity economy”. 27 unions form the Korea Foundation for Social Investment, including 242 community self-support centers, almost 3,000 businesses, 26,000 people, 251 accredited social enterprises working in job creation, social services, social welfare, and environment. The social enterprises integrate marginalized people, those without technical skills, elderly, long-term unemployed, into the workforce. Social enterprises serve as middle man between civil society and government.
Japan in 1989 recognized juridical existence of NPO’s. The new government is advocating a “fraternity society” with a greater focus on the poor. How does Japan use it’s capital? Buying bonds from the US, how else could that capital be used? Solutions: local consumption and production, lifestyle shifts, social policies, connecting around the world.
Question and Answer
Question about the dependence of social economy on the government in Korea, should the social economy be more independent of the government? Social economy in Korea financed by a mix of government and private money, multiple goals, multiple stakeholders, multiple resources.
Plenary Session 3: Alternative Development Approaches & Solidarity Economy
Bernd Balkenhol (International Labor Organization)
Viviane Vandemeulebroucke (INAISE)
Micol Pistelli (MIX)
Mariko Kawaguchi (Daiwa Soken)
The difference between social finance and conventional finance: mission (social and financial goals), scale (microfinance being small, co-op finance in some nations includes 1/3 of the market), scope, values, innovations. Must look at both the interest of the stakeholders and the effects on the community. Social financial institutions must be profitable but they cannot maximize profits. Structural dependency on the government is not good. Social finance should include government policies that induce financial institutions to maximize public benefits.
AIG bailout was $170 billion, yet less than $40 billion invested in microfinance around the world.
Question: should social finance continue as a niche sector or spread to the whole economy? Often co-ops when get larger become easily convert into mainstream corporations.
The International Labor Association working on two research projects 1)to demonstrate the effects of microfinance on child labor and working conditions 2) to test approaches to microinsurance
INAISE is a social finance member organization network with 54 organizations in 30 countries. Socially conscious investors can invest in small medium enterprises and individuals, using the triple bottom line of people, planet, profit. Institute for Social Banking and International Summer School of Social Banking in Italy.
MIX is measuring social performance, serving as an information platform on microfinance institutions around the world, collecting financial and social performance data. They have developed 22 indicators. Respond to “mission drift” where firms begin to respond more to shareholders than community.
Question and Answer:
Some big corporations are now getting into fair trade, and the same is happening with microfinance, for example Citibank has a microfinance window – what are the opportunities and risks here?
There are opportunities, but it’s important to distinguish between exploitative institutions making small efforts in the name of reputation management, and real social banks.
Question for MIX about how microfinance institutions are measuring up – are they putting people more and more into debt or are they helping? Just starting to implement performance standards, those that have reported are doing well, but it is voluntary to report to them, so there may be many not doing well who choose not to report.
Plenary Session 4: Social Enterprises: Facets of Solidarity Economy
Sudha Reddy (Charter for Human Responsibility)
Ben Quinones (CSRSME Asia)
Chigusa Fujiki (Workers Collective Network, Japan)
Ha Jung Eun (Work Together Foundation, Korea)
Kenmichi Ohdaka (Seigakin University)
Majority of world’s population vulnerable to changes of globalization
Gandhian concept of trusteeship, cooperation and compassionate competition
“Social enterprise” – must generate economic value added, and also must generate social and environmental value added. Some examples: former Bed and Bath workers took over the factory and turned it into a coop, group trying to take back ancestral land, World Fair Trade conference, community based tour group guide, cooperatives of artisans making handicrafts, fair housing project, local coffee collective, financial services cooperative.
Work ahead:
-need for mapping of solidarity initiatives in geographic areas
-understand the interplay of governance, market, and solidarity economy activities
-develop the solidarity economy supply/value chains with networking
-develop performance measures
-policy advocacy – to see solidarity economy as an approach to development
The Workers Collective Network in Japan. 1980’s agricultural coops grew in Japan, 1984 disability rights national network, 98 non-profits recognized. Collectives must include 1 person, 1 vote, workers play a role in magagement. In 1980 collectives took off in Japan, collectives work in healthcare/nursing, childcare, meal delivery and services, funeral services. They are currently working for a national law defining cooperatives, drawing from Korea.
Work Together Foundation Korea. The Korean Social Enterprise Act supports and sets a system for certification of social enterprises. The criteria include: organization, paid employees, social purpose, democratic decision-making process (recipients, workers and stakeholders have a role), must make a profit, 2/3 of profits must be spent on a social purpose. In Korea there are 7,000 people employed in this sector, 58% of whom are from “disadvantaged” sector, employed in manufacturing, care services, recycling, and others. The Korean government provides regulation, loans capital, provides training and some finance. Internal issues remaining: reduction of ghettoes, balance social values and profits, tools for evaluation on social goals, project planning, skill development, social capital and alternative financial resources, networking and formation of markets, growth, alternative structures of governance, meeting the needs of clients and participants, strengthening leadership and interbusiness networks, social enterprise promotion and awareness in the public, greater research.
There is a new government in Japan, and there is the opportunity to promote social enterprises as employment generating mechanisms to be supported by stimulus money. We have to start by looking at social exclusion and move from there to business rather than starting with a business and then looking at social exclusion. In Japan, many social enterprises provide welfare services and jobs in various sectors of society. Social enterprises still don’t have legal status in Japan. Currently working to map social enterprise in Japan. How do you distinguish between social enterprise and “poverty business” that is exploiting the poor? How is being “social” defined? Are the voices of the excluded driving or even part of the governance of social enterprises?
Employment is often not enough for socially excluded people, they may need more comprehensive support, there are multiple interrelated problems. When talking to marginalized youth see they feel rejected, afraid of others, doubting themselves and their acceptance by society. Social enterprises should also be tools to build community and a sense of belonging.
Questions and Answers:
Question about whether Korean model, which started from the government, is a strong model for the future or too dependent on the government – is it self-reliant? Talked about the need for public resources in public/social service sectors, but that other sectors should be self-reliant.
WORKSHOP: International Solidarity Tax
Jun Nishikawa (Waseda University, Japan)
Kon Gihyon (Community Coalition for Environmental Justice, Korea)
Tohru Morotomi (Kyoto University, Japan)
Mr. Takehiko Uemura (Yokohama City University, Japan)
Proposal: International Solidarity Levy, to regulate the global money flow characterized by a non-human speculative nature, and to use this money to address global poverty and environmental issues.
Experience of Korea in the 1990’s, a reckless opening of foreign exchange and capital investment leading to financial crisis. 1995 Korea joined the Uruguay round of GATT, liberalized finance, lots of capital and investment came to Korea, when crisis hit, they all pulled out. In 1997, the World Bank and IMF imposed policies that made the crisis worse. For example, they demanded the transition from a banking system to a capital led system, which hurt Korean businesses and led to the buy-out of Korean banks by foreign banks, who then wouldn’t lend to domestic businesses but invested instead abroad in risky real estate projects. The inherent function of banks to take deposits form people and lend to productive businesses is being lost.
Solutions: recognize the real causes for the current crisis, reject World Bank and IMF policies, stop speculation instead of investment, the Tobin Tax.
Questions about the Tobin Tax (or International Solidarity Tax): who will levy this tax? If it is run by the IMF or World Bank as proposed by some current leaders, then it’s very problematic. Each country could have an independent authority related to the tax.
The Tobin Tax or Intl Solidarity Tax could help distribute wealth from North to South, help finance the Millenium Development Goals, and help address adaptation to global warming. Polluter pays principle – industrialized countries need to compensate others for effects of global warming. How would the revenue be distributed and who would decide? What if some countries implement the tax and others don’t? Will it really restrict currency volatility? Who will collect the tax? IMF would be problematic.
Currently France has started with a solidarity tax on airplane tickets that will be used to fight infectious disease in the developing world.
Why do we need a solidarity tax?
- to slow speculative capital
- to fund poverty reduction and environmental protection
- to expand transparency and accountability
2006 Paris Conference on the international solidarity tax – 13 countries were willing to do an airplane ticket solidarity tax and 9 countries are already implementing it – Japan and US have not joined.
Other types of global taxes: international transaction tax, multinational corporation tax, carbon tax, weapons trade tax.
Public Services International is discussing this in Cambodia with international network of trade unions, studying this issue. The Global Tax Research Committee has been established, and the non-profit, Association of Citizens for International Solidarity Taxes. His book The Potential for a Global Tax will be coming out next year.
Question and Answer;
This morning in the paper it talks about Gordon Brown supporting the idea of an international solidarity levy at the G20 meeting, but it would be through the IMF. How is this being addressed?
Yes, this is very problematic as the IMF is an undemocratic institution.
We talked a lot about investors from the West, but what about investors within Asia? How are they impacting local communities and environments? For example Japanese companies in poorer Asian nations, or China in Burma, Sri Lanka. Many of the threats to Asia are not only from West but from within Asia. We have talked about World Bank and IMF but what are the roles of ASEAN, APEC and other regional institutions to address these issues?
Asia is thinking about a common currency and maybe the Tobin Tax could be implemented within the Asian community. Leadership within Asia has to be looked at. Can Japan play a different type of leadership role than in the past?
What about the issue of hunger and speculation in commodities and food? Shouldn’t this be made illegal?
***Other workshops I was not able to attend since I had to pick one include:
-Social Finance/Microfinance & Solidarity Economy
-Fair Trade & Solidarity Economy
-Social Welfare & Solidarity Economy
-Agriculture and Local Initiative and Solidarity Economy.
Regrettably, I also was not able to attend the final Plenary Session 5 on “Social Performance Management for Promotion of Solidarity Economy”, the “Tokyo Consensus” or the “Closing Session” because of flight scheduling. Please check the attached official Statement of Commitment from the Asian Forum for Solidarity Economy.
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I want to thank everyone so much for sharing your knowledge, analysis, and experiences with me at the Asian Forum for Solidarity Economy. It was really inspiring to hear the stories and see the people with their feet on the ground building a healthier society and more just economy throughout Asia and the world. And it was heartening to see the concrete planning and deeper thinking going into the formation of the Asian Alliance for Solidarity Economy moving forward from here. I hope that I can contribute something from Taiwan in the next year and from the United States in the coming years. Please feel free to contact me at any time (especially if you make it to Taiwan!), and I look forward to hearing more from all of you, and hopefully visiting some of your countries and projects as well.
I want to extend a special thanks to the organizers of the Asian Forum for Solidarity Economy, the staff and volunteers, who worked so hard to put on an excellent and fulfilling event which ran very smoothly logistically.
I typed up the notes I took during the Saturday and Sunday sessions to share with friends back home at the US Network for Solidarity Economy. They are very incomplete because of missed sessions, interpretation issues, my own attention span, and other reasons, so are not intended to be an official recording of any type, but more a glimpse into a couple of the discussions taking place at the forum for friends back home. Please feel free to let me know if any of the information needs to be corrected. I also apologize for sending this email so late, as I was caught up in final exams the last few weeks.
Thank you again, keep up the good work, and I look forward to working together in the future!
Sincerely,
Hannah Weinstock