the potential & limits of social and solidarity economy peter utting
Post on 19-Jan-2016
228 Views
Preview:
TRANSCRIPT
Focus
• The contemporary development challenge
• SSE: What is it? Definitions, trends & potential
• Tensions and challenges• Ways forward
The need to rethink development & liberalization
• A growing consensus– World Social Forum– Rio+20– Post 2015 (MDG) agenda
• Beyond the post-Washington Consensus & poverty reduction strategies
The 21st century development problem
– Informalization, underemployment & indecent work
– Rising inequalities– Women’s double burden (paid and unpaid
work)– Environmental costs of industrialization,
high-input agriculture & consumption patterns
– Climate change– Recurring crises (finance, food, fuel) &
heightened risk
What worked in the 20th century?
• Welfare states: Europe
• Developmental states: East Asia
• Decent work enterprises
Partial gains, major limitations• High growth, full (male) employment, high
formal sector absorptive capacity of surplus labour
• Comprehensive social protection & welfare regimes, including social security through the workplace
But …. 1. Social and environmental
consequences: gender inequality, women’s unpaid care work; waste, pollution & global warming
2. Unravelling of the welfare & decent work model with globalization, neoliberalism & financial crises
Vulnerable employment: salient facts (ILO 2013)
• Unemployed: 200 million & rising• Regions that have halted the decline, have
experienced decline in job quality• Vulnerable employment: 1.49 billion workers in developing countries (56%)• Informal employment:
• South Asia: 82% of (non-farm) employment• SSA: 66%; East & SE Asia: 65%; Latin
America: 51%• % share of IE in women’s employment is higher• Impact of (high) growth in reducing IE is limited
Current orientation of mainstream development
policy: economic empowerment of
individual producers via market access & microcredit, and SME development
focus on the individual citizen or for-profit enterprise
focus on safety-nets & human capital formation
The need for another approach
• One that recognizes principles and importance of:
• Cooperation & collective action
• Solidarity• Basic needs provisioning• Redistributive justice and
comprehensive social policy
What is SSE?
SSE comprises organizations and enterprises that produce goods and services and that:
1) have explicit social objectives (e.g. basic needs provisioning; employing the unemployed)
2) involve co-operative and associative relations3) practice solidarity by using resources and
surpluses to benefit others4) practice democratic self-management
ILO: Social & Solidarity Economy: Our Common Road Towards Decent Work, 2011.
What SSE is not
Not primarily for profit & returns to investors
Not state-owned or controlledNot a hierarchical organizationNot unorganized informal or own
account workers & producers
Potential of cooperation & collective action:
– Economic empowerment & enhanced capacity to deal with market failures:• improves access to information, training, &
credit; pooling skills, economies of scale, bargaining power
– Political empowerment & enhanced capacity to exert claims; improves access to policy processes, social dialogue, capacity to contest; advocacy
SSE facts & figures
An expanding field:
• Nearly 1 billion cooperative members• Revival of cooperatives in Africa and Latin America• Big coop: e.g. Mondragon, Amul, Desjardins• Mutual associations: health and social protection
coverage for 170 million people• Rise of social enterprise in Europe and Asia• 2.5 million WSHGs in India• Growth of fair trade markets• Unionization of urban own account workers• Globally networked: e.g. RIPESS, Via Campesina, Global
Alliance Wastepickers, Homenet, Streetnet
Major challenges
• Weak initial conditions (poverty, inequality & disempowerment)
• Lack of state support• Lack of autonomy when state gets
involved• Unsustainability of SSE organizations• Problematic gender relations & working
conditions within SSE organizations• Elite capture• Shifts towards profit and financial
orientation
Enabling policies (1)
• SSE ministries & national secretariats: e.g. Brazil, Colombia, France, Nicaragua and Luxembourg
– The Brazilian Secretaria Nacional de Economia Solidária (SENAES), through their Programa de Desenvolvimento Regional, Territorial Sustentável e Economia Solidária (2012-2015), offers technical assistance to SSE organizations, promotes local development, solidarity-based finance and aims to organize a national system of fair trade among other goals (Morais 2013)
• Programmes, e.g.– India: Kudumbashree enhancing local economic development and
women’s social standing and capabilities in the state of Kerala– Nicaragua: “Hambre Cero” providing poor rural women organized in
groups with livestock & tools for food & livelihood security: e.g. seeds, chickens, cow, pigs, roofing
– Argentina: Manos a la Obra finances and supports projects that strengthen the social economy
– Uganda: National Co-operative Development Plan
Enabling policies (2)• Laws
– Ecuador: SSE part of the constitution– Portugal, Spain, Greece, Mexico, Quebec: framework laws that recognize
SSE as a sector, beyond regulations targeting specific types of organizations, e.g. coops
– France: new bill on SSE focuses on amplifying financing for SSE organizations and enterprises, increasing worker empowerment and control, creating regional employment, consolidating the economic model of SSE businesses, integrating SSE public policies for long term stability
– Philippines: the Social Enterprise Bill, currently proposed before Congress, promotes social enterprises as a tool in the government’s poverty reduction program
• Policies– Brazil: participatory budgeting and procurement policies– Decentralization & “local developmental states” (Bateman)– US: In Indiana, using state deposits to lower interest costs to employee-
owned companies– Denmark energy policy: Government funding 30 per cent of all investment
in new wind turbines (1980 -1990), “Energipakken” compelled electricity distribution companies to purchase a certain quota of energy supply every year from renewable producers, local and collective ownership of turbines was encouraged
– Other types of SSE policies include credit/subsidies, trade fairs, fiscal, education and training, CCTP and other social policy and programmes
Ongoing challenges in SSE-state relations
• Only certain types of organizations are recognized & supported, e.g. coops
• Poverty reduction & social assistance versus enhancing capabilities, infrastructure & distributive justice
• Sub-contracting service provisioning• Top-down policy design & implementation• Party policy or state policy• Weak decentralization (local authority without
resources)
Agricultural cooperatives: tensions & challenges
Tensions:• Between social and business functions
– e.g. balance between equity and efficiency
• Between membership homogeneity and external links– Membership homogeneity reduces coordination costs, but face disadvantages in
creating extra-group links
• Between keeping coordination costs low and achieving economies of scale
– Economies of scale increase countervailing power vis-à-vis others in the value chain, yet coordination costs and chance of principal-agents problems increase with group size
• Between external financial/capacity/policy support and autonomy• Between meeting standards and satisfying members
– Higher standards are often achieved through hierarchical decision making structures
• Between the different functions of a cooperative– e.g. negotiating good prices for members, providing information and advice to
members, facilitating access to financial services, enhance the level of market integration (commercialization)
“The intermediate transaction cost hypothesis”: farmers with middle-sized holdings, producing cash crops/perishables, and will some access to
roads/infrastructure derive greater benefits from cooperation than small and larger farmers
Source: Muradian (2013)
Argentina’s Community Currency System (El Trueque)
• Social capital: transactions within SSE depend on trust and common values. Personal exchange facilitates social capital
• As SSE expands there is a transition from personal to impersonal exchange, social capital is strained
• Trust needs to be allocated to impartial institutions that can enforce rules
• As El Trueque scaled-up (to 2.5 million households) such institutions and rules did not work and the system contracted
Source: Georgina Gomez 2013
Governance matters
• Fair trade- Increasing voice & vote of
small producers within Fairtrade International (FLO)
- Different actors & interests in governance structures of Transfair USA
- Diverging interests: split within the movement in 2011
-- United Students for Fair Trade splits from Transfair
-- Some Latin American producer associations announce they will also develop their own labels
Self-help groups (South Asia)
• Women’s participation & gender equality – Under-represented in governance
structures– Numbers matter (Bina Agarwal)– Gaining voice through deliberation– Traditional norms & division of labour
– Homogenous versus heterogeneous membership
Does an SSE movement and vibrant civil society exist?
Argentina: populist approach; social movements lack autonomy
Brazil: co-construction; partial bureaucratization of social movement activism
Ecuador: active social movements; SSE seen as part of societal transformation
The need for strong & representative intermediary organizations
Multi-scalar activism & coalitions
Organizing beyond the local level
e.g. Community forestry in Nepal,Via Campesina, Streetnet, Global Alliance of Waste Pickers, International Cooperative Alliance (ICA)
NATIONAL
STATE/PROVINCE
DISTRICT
COMMUNITYGROUPS
COMMUNITY FOREST INITIATIVES
SELF-HELPGROUPS
Potential Lateral and Vertical Alliances – South Asia
- Associations, Federations Source: Based on Agarwal, 2013
Ways forward
• Co-construction of policy• Participatory governance within SSE
organizations• Multi-scalar advocacy & broad-
based coalitions• Transformative (comprehensive)
social policy
Transformative Social Policy
• 4 functions of social policy:Not only social assistance & services human capital formation
(education/training)But also social reproduction (care of elderly &
children) redistributive policies (progressive
taxation and land reform)
top related