Solidarity economy
Encyclopedia
The definition of "solidarity economy" is widely contested. For some, it refers to a set of strategies aimed at the abolition of capitalism
and the oppressive social relations that it supports and encourages; for others, it names strategies for "humanizing" the capitalist economy—seeking to supplement capitalist globalization with community-based "social safety net
s".
The solidarity economy can be seen a) as part of the "third sector" in which economic activity
is aimed at expressing practical solidarity with disadvantaged groups of people, which contrasts with the private sector
, where economic activity is aimed at generating profit
s, and the public sector
, where economic activity is directed at public policy
objectives, or b) as a struggle seeking to build an economy and culture of solidarity beyond capitalism in the present.
The still evolving term "solidarity economy" is an English translation of a concept represented by the French "économie solidaire" and similar terms in several other languages. As such it is sometimes translated by other expressions such as "solidarity-based economy".
, forming what might be termed the "social and solidarity economy" (from the French "économie sociale et solidaire"). The concepts are still under development and the difference between the two terms is gradually being clarified. An organisation seeing itself as part of the solidarity economy generally goes beyond achieving purely social aims: it aims to put right an injustice by expressing solidarity. For example, a local sports club has a social aim and so can be considered part of the social economy, but would not normally be considered part of the solidarity economy except in special circumstances (e.g. a township sports club in South Africa in the days of apartheid).
Capitalism
Capitalism is an economic system that became dominant in the Western world following the demise of feudalism. There is no consensus on the precise definition nor on how the term should be used as a historical category...
and the oppressive social relations that it supports and encourages; for others, it names strategies for "humanizing" the capitalist economy—seeking to supplement capitalist globalization with community-based "social safety net
Social safety net
Social safety nets, or "socioeconomic safety nets", are non-contributory transfer programs seeking to prevent the poor or those vulnerable to shocks and poverty from falling below a certain poverty level. Safety net programs can be provided by the public sector or by the private sector...
s".
The solidarity economy can be seen a) as part of the "third sector" in which economic activity
Economics
Economics is the social science that analyzes the production, distribution, and consumption of goods and services. The term economics comes from the Ancient Greek from + , hence "rules of the house"...
is aimed at expressing practical solidarity with disadvantaged groups of people, which contrasts with the private sector
Private sector
In economics, the private sector is that part of the economy, sometimes referred to as the citizen sector, which is run by private individuals or groups, usually as a means of enterprise for profit, and is not controlled by the state...
, where economic activity is aimed at generating profit
Profit (economics)
In economics, the term profit has two related but distinct meanings. Normal profit represents the total opportunity costs of a venture to an entrepreneur or investor, whilst economic profit In economics, the term profit has two related but distinct meanings. Normal profit represents the total...
s, and the public sector
Public sector
The public sector, sometimes referred to as the state sector, is a part of the state that deals with either the production, delivery and allocation of goods and services by and for the government or its citizens, whether national, regional or local/municipal.Examples of public sector activity range...
, where economic activity is directed at public policy
Public policy
Public policy as government action is generally the principled guide to action taken by the administrative or executive branches of the state with regard to a class of issues in a manner consistent with law and institutional customs. In general, the foundation is the pertinent national and...
objectives, or b) as a struggle seeking to build an economy and culture of solidarity beyond capitalism in the present.
The still evolving term "solidarity economy" is an English translation of a concept represented by the French "économie solidaire" and similar terms in several other languages. As such it is sometimes translated by other expressions such as "solidarity-based economy".
Social and solidarity economy
The solidarity economy is often considered part of the social economySocial economy
Social economy refers to a third sector in economies between the private sector and business or, the public sector and government. It includes organisations such as cooperatives, non-governmental organisations and charities....
, forming what might be termed the "social and solidarity economy" (from the French "économie sociale et solidaire"). The concepts are still under development and the difference between the two terms is gradually being clarified. An organisation seeing itself as part of the solidarity economy generally goes beyond achieving purely social aims: it aims to put right an injustice by expressing solidarity. For example, a local sports club has a social aim and so can be considered part of the social economy, but would not normally be considered part of the solidarity economy except in special circumstances (e.g. a township sports club in South Africa in the days of apartheid).
Examples of solidarity economy organisations
- Fair tradeFair tradeFair trade is an organized social movement and market-based approach that aims to help producers in developing countries make better trading conditions and promote sustainability. The movement advocates the payment of a higher price to producers as well as higher social and environmental standards...
organisations form part of the solidarity economy as their aim is to express practical solidarity with farmers in the developing world by paying them fair prices for their produce. - Self-helpSelf-helpSelf-help, or self-improvement, is a self-guided improvement—economically, intellectually, or emotionally—often with a substantial psychological basis. There are many different self-help movements and each has its own focus, techniques, associated beliefs, proponents and in some cases, leaders...
organisations also form part of the solidarity economy as members support each other in dealing with their problems as a practical form of solidarity. - Co-operatives and especially Worker cooperativeWorker cooperativeA worker cooperative is a cooperative owned and democratically managed by its worker-owners. This control may be exercised in a number of ways. A cooperative enterprise may mean a firm where every worker-owner participates in decision making in a democratic fashion, or it may refer to one in which...
s form part of the solidarity economy if their aims include a commitment to solidarity in some form. - Trade unions are often considered a key part of the solidarity economy as they are based on the principle of solidarity between workers.
- Open sourceOpen sourceThe term open source describes practices in production and development that promote access to the end product's source materials. Some consider open source a philosophy, others consider it a pragmatic methodology...
development and other forms of commons-based peer productionCommons-based peer productionCommons-based peer production is a term coined by Harvard Law School professor Yochai Benkler to describe a new model of socio-economic production in which the creative energy of large numbers of people is coordinated into large, meaningful projects mostly without traditional hierarchical...
. - Social centerSocial centerSocial centers are community spaces. They are buildings which are used for a range of disparate activities, which can be linked only by virtue of being not-for-profit. They might be organizing centers for local activities or they might provide support networks for minority groups such as prisoners...
- Give-away shopGive-away shopGive-away shops, swap shops, freeshops, or free stores are stores where all goods are free. They are similar to charity shops, with mostly second-hand items — only everything is available at no cost...
s and other forms of Gift economyGift economyIn the social sciences, a gift economy is a society where valuable goods and services are regularly given without any explicit agreement for immediate or future rewards . Ideally, simultaneous or recurring giving serves to circulate and redistribute valuables within the community... - Local Exchange Trading SystemsLocal Exchange Trading SystemsLocal exchange trading systems , also known as LETSystems, are locally initiated, democratically organised, not-for-profit community enterprises that provide a community information service and record transactions of members exchanging goods and services by using the currency of locally created...
(LETS) as a way of replacing money. - Solidarity lendingSolidarity lendingSolidarity lending is a lending practice where small groups borrow collectively and group members encourage one another to repay. It is an important building block of microfinance.-How it Works:...
- Ethical purchasing
External links
- Grassroots Economic Organizing
- Euclides André Mance Archives
- SolidarityEconomy.Net
- The U.S. Solidarity Economy Network
- Portal de Economía solidaria (in Spanish)
- Solidarische Ökonomie (in German)
- Different articles available in English, French and Spanish (MIJARCMIJARCMIJARC means 'International Movement of Catholic Agricultural and Rural Youth'...
) - SOLECOPEDIA (online encyclopaedia on solidarity economy, in English, French, Spanish etc.)