Marcos Arruda of PACS (Institute of Alternative Policies for Southern Cone of Latin America), Brazil and Member of the Global Coordinating Team of the Alliance for a Responsible, Plural and Solidarity-based Economy (ALOE, France): Solidarity economy is an economy centered on people, not on profits, and on ecological sustainability, instead of on immediate gains at any cost. It takes people‘s needs, not profit maximization, as the goal of economic activity, which means putting economic and technical development at the service of social and human development. It also means adopting conscious altruism and solidarity, not extreme individualism, as the core of the new socioeconomic culture, and cooperation, not competition, as the main form of relationship among humans and between them and Nature.
A growing number of practitioners view solidarity economy as a post-capitalist mode of defining and organizing society, human work, consumption, production, exchanges, money, technology; and, further, as a new way of life that inspires attitudes and behaviors with values such as sharing, co-responsibility, reciprocity, plurality, respect for diversity, freedom equality and equity, ethics, brotherhood-sisterhood. At present, millions of people and a few nations already live by these values and practice another economy and work relationships emancipated from the chains of the labor market and of mere physical survival. This happens in concrete spaces like cooperatives and other self-managed firms, family farming, communities, peoples.
The empowerment of the social individual to become the main protagonist of her-his own development is the ultimate goal of Solidarity Economy. This means that working people, i.e. people who live mainly from their work, rather than from capital gains, must become the protagonist of development. It is important to redefine the role of the State from one which has pervasive political power to one that is truly a democratic institution, organized in ways that serve society as a whole, orchestrating diversity and seeking to build unities within diversity.
Yvon Poirer, Member of the Coordination Committee of the North American Network for Solidarity Economy (NANSE) and participant of the Workshop on Socially Responsible Governance. Solidarity economy, as defined by the 2001 International Forum of the Alliance for a Responsible, Plural and United World, refer to activities of production, distribution and consumption which contribute to the democratization of the economy based on the involvement of citizens at a local and global level. It takes form through different modalities on all continents. It encompasses the different forms of organizations that a population adopts to create its proper resources for work or to access quality goods and services; this is accomplished through a dynamic socially responsible reciprocity which articulates individual and collective interests.
Another definition of solidarity economy is the one adopted by the U.S. Social Forum (June 2007) organized by the US Solidarity Economy Coordination Committee. According to the U.S. Social Forum, Solidarity Economy constitutes an alternative economic model to neoliberal capitalism, one which is grounded on solidarity and cooperation, rather than the pursuit of narrow, individual self-interest, and that promotes economic democracy, alternative models of local economic governance, equity and sustainability rather than the unfettered rule of the market.
Yoko Kitazawa, founding member of Pacific Asia Resource Center in Japan and facilitator of the Workshop on Socially Responsible Governance: Solidarity economy is an economy which does not seek maximum profit, but works with solidarity among people.
Cecile Lapenu, Executive Director of CERSIE (France), International Coordinator of ProsperA (France), and resource person of the Workshop on Socially Responsible Financing: Solidarity Economy is oriented towards reaching a triple bottom line (financial efficiency, social impact and respect of the environment). It promotes activities that reinforce social capital and respect human being. In this context, short-term profits do not lead the decisions in solidarity economy, but rather the impact of the economic activities on the individuals, their families, the communities where they live and the environment. It is important to have a broad vision, as in ALOE (Alliance for a Responsible, Plural and Solidarity Economy). Social responsibility, diversity of actors and alliances, and solidarity among people, among countries are key issues for a more humane economy.
Giovanni Acquati, from Italy, President of INAISE (International Association of Investors in Social Economy) and participant of the Socially Responsible Investment Workshop: Solidarity Economy is a form or branch of Social Economy that looks particularly to the poor, the weak and the excluded persons, as for example the people supported by the microcredit system. Being part of Social Economy, the respect of people is the operative philosophical base of Solidarity Economy . In every process of Solidarity Economy, people and the respect of environment should be the core focus, and that the impact of every human activity on the environment has to be considered wherever this activity develop. Solidarity Economy also implies the idea of Solidarity among Enterprises, that is, Enterprise Networks that decide to work together and practice self help in their development.
Sudha Reddy, Director of SHARE (Solidarity for Harmony, Awareness, Responsibility & Empowerment) of India, and resource person of the Workshop on Socially Responsible Governance: Solidarity Economy is an alternative form of life-centered economic process based on the democratic, ethical and humane principles and collective action that leads to overall wellbeing of the humankind and environment.
Dr.Christopher Shun, Finance and Administration Director of Foundation for Community Studies and Social Development (YKPM, Malaysia): The term solidarity economy is used interchangeably with social economy, popular economy and labour economy. But the word Solidarity Economy has a special meaning because it describes the coming together of people as a cohesive unit working to serve common vision and interests to form the economic foundation of these initiatives. As their interests vary, so do the activities. These interests range from micro-credit schemes through local exchange systems, income generation groups, barter groups to collective kitchens. Solidarity Economy is free, harmonious, mutually binding, and organized, wherein the relationships are of cooperation and for the construction of a social power. It looks to create economic growth stressing the importance and priority of the well-being of society and seeks to preserve and sustain the original indigenous culture, which is the source of personal identity, heritage and legacy.
Bienvenido Padilla, Consultant of Timor Aid (Timor Leste), and resource person of the session on Investment Opportunities in Solidarity Economy: In solidarity economy, all stakeholder-members are affected or involved, directly or indirectly not only in the creation of wealth but also in its appropriation. Each stakeholder-member contributes to the productive undertaking and corporately all the members benefit equitably from the same. This is in contrast to the maintstream economy where only some or a few individuals get all the benefits.
Arun Raste, Director of International Resources for Fairer Trade (IRFT, India) and resource speaker of the Workshop on Socially Responsible Enterprise: Solidarity economy does not exploit either nature or people. It gives the small and primary producers the chance to manage both their production and the economy and cares for all people of the planet, as well as for future generations. It treats human beings in a humane way and not as machines.
Kyoko Sakuma, Executive Director of Sustainability Analysis and Consulting (Belgium), and Coordinator of the Workshop on Socially Responsible Investment: Solidarity economy can operate side by side with the market economy for as long as its approaches continue to be innovative . Solidarity economy cannot operate independently of the market economy, but on the contrary, it needs to compete in the real market logic of traditional market. Creating one‘s own niche or segment within the market economy requires innovation, or an innovative mind. In this context, solidarity economy can be called social entrepreneurship, which may be defined as a network of people with entrepreneurial spirit and an innovative mind in
providing solutions to societal problems and their supporters in joining the newly created segment of the market.
Dr. Tito E. Contado, President/CEO of Philippine Morinda Citrifolia Inc. and case study presentor of the Workshop on Socially Responsible Enterprise: Solidarity Economy is a new concept. It can be associated with the word ’solidarity‘ and Lech Walesa of Poland who in the early 1990s toppled down the communist leadership in his country under the rallying battlecry of “Solidarity” which eventually became the name of his political party. Solidarity economy is the unity of interests, objectives and standards of the different economic actors/sectors characterized by their interdependent relationships.
Takashi Sawaguchi, Chairman of Policy Research Institute for the Civil Section (Japan) and participant of the Workshop on Socially Responsible Enterprise: I am not an intellectual, so I do not know how to define. Therefore I would like to tell you just facts about the solidarity between consumers and producers that we have been doing for last nearly forty years in Japan. Seikatsu Club is a consumers‘ co-operative, but it has established its own three milk plants with 100 dairy farmer-families and 4000 cows. We have our own chicken farms with producers. We have been co-operating with rice farmers and pork meat producers for the last nearly 35years. Seikatsu Club has created some of the sustainable agriculture models through the solidarity between consumers in urban areas and producers in rural areas. We have been living our lives as the consumers who are also the producers, Takashi says. That is the not only our philosophy but also our own practical standard.
Charisse Baldo Development Programme Officer of the Advocate of Philippine Fair Trade Inc. (APFTI) and co-facilitator of the Workshop on Socially Responsible Enterprise: Solidarity economy is an economic model of cooperation. It involves different sectors of society working together towards creating an economy that looks out for the weak. The different sectors are in ’solidarity‘ with a certain cause, a certain group of stakeholders. It looks not just at the numbers, but also at the people, the stories behind the numbers. Fair Trade is a concrete example of solidarity economy. Fair Trade tries to level the playing field for the small producers, in what has become a flatter but more competitive and unequal world .It is a model of development that focuses on trade, not aid.
Dr. Miguel P. Niez, Assistant Vice President of Tagum Agricultural Development Company, Inc (TADECO, Philippines) and participant of the Workshop on Socially Responsible Enterprise: Solidarity economy is a process of producing goods and services that utilizes available resources to meet social needs. It recognizes the value of labor and finds ways for product maximization and the preservation of environment‘. Solidarity economy is an attractive alternative to neo-liberal globalization in terms of the ethics, political, social, cultural and ecological dimensions. Solidarity economy is about sharing of resources in the process of mobilizing people, nature and capital for sustainable growth.
Franck Renaudin, Founder and Director of Entrepreneurs du Monde (France), a partner organization represented in the Asian Forum by a sizeable delegation that participated in the Worshop on Socially Responsible Financing: Solidarity economy is an economy that puts respect for Human Beings and the Earth at the heart of its concerns. The different actors of solidarity economy fully perceive and understand the need and interest to fight against inequalities and to protect planet Earth.
Jeanne Bernardo, Executive Director of Bayanihang Pilipino Inc. (Philippines) and co-Coordinator of the Workshop on Socially Responsible Governance: Solidarity economy as comprising the whole spectrum of economic activities which socially responsible and values-led organizations undertake by collaborating with and networking among other like-minded organizations and the communities they serve to meet the needs of all concerned.
Jimmy Ching, Chairman of Christian Businessmen‘s Forum International (Philippines), and co-Coordinator of the Workshop on Socially Responsible Enterprise: Solidarity economy is an alternative economy that is based on compassion for people and care for the environment. It is an economy where self-interest gives way for the interest of the whole; where greed, as the motive for profit is eliminate. In solidarity economy, love for God and country becomes the center of everything. The standard therefore is based on objective truths that can only be found in the Word of God, he says.
Vicente L. ”Sonny” Domingo, National Chariman of the Kapisanan ng Magsasaka, Mangingisda at Manggagawa Ng Pilipinas Inc. (KaMMMPi, Philippines), and participant of the Workshop on Socially Responsible Governance: Solidarity economy is the convergence of socially oriented individuals. Leaders and institutions that recognize man as the center of economic activity are the ones who desire righteous relations with others. Solidarity economy also recognizes the existence of a social capital (vis-à-vis financial capital) coming from people who have a solid stand on a common cause. In developing a business or an enterprise, whether micro or a business conglomerate, the human resources or manpower should be recognized as ‘capital‘ and their aspirations as ‘collateral‘ (vis-à-vis money capital and real estate) so that ordinary people can have an equity share in the business and its profits‘. This viewpoint represents a paradigm shift in business development which usually recognizes only money as capital and real estate as collateral.
In sum, Solidarity Economy denotes an economic system oriented towards people and ecological balance as opposed to the mainstream economy which is geared towards maximization of profit and wanton accumulation of private wealth. Some countries (e.g. France, Canada) adopt the term ’social economy’ instead of solidarity economy, the latter being more widely used in Latin America.
Some people make a distinction between Solidarity Economy and Social Economy but the more important thing to remember is that they share similar basic principles. For example, the five key principles established by the Chantier l‘ Economie Sociale of Quebec to distinguish social economy enterprises can well be applied to solidarity economy initiatives.
These are:
● the objective is to serve its members or the community, instead of simply striving for financial profit;
● the economic enterprise is autonomous of the State;
● in its statute and code of conduct, a democratic decision-making process is established that implies the necessary participation of users and workers;
● it gives priority to people and work over capital in the distribution of revenue and surplus; its activities are based on principles of participation, empowerment, and individual and collective responsibility. It can be said that the concept of solidarity economy is much better entrenched than it was before the Asian Forum in the Philippines, and for the participants from other countries
