Solidarity-based economics
First articulated in France and Latin America in the 1980s, the solidarity economy advocates for a transformative approach to a new economy, taking the traditional third sector approach a step further to all spheres of economic activity.[1] In our next piece on the solidarity economy, we look at the values underpinning the solidarity economy as well as various solidarity-based forms of economic organization that are already in place.
The values of the solidarity economy
The solidarity economy is grounded in principles that, while varying in their articulation from place to place, share a common ethos of prioritizing the welfare of people and planet over profits and blind growth. These include:
Pluralism. The solidarity economy is not a fixed blueprint, but rather acknowledges that there are multiple paths to the same goal of a just and sustainable world.
Solidarity. This includes a range of social interactions grounded in collective practices such as cooperation, mutualism, sharing, reciprocity, altruism, love, caring and gifting.
Equity. The solidarity economy opposes all forms of oppression: imperialism and colonization; racial, ethnic, religious, patriarchy and cultural discrimination.
Sustainability. Drawing heavily upon indigenous perspectives of living in harmony with nature and with each other, the solidarity economy upholds the principles of sustainability, restoration and regeneration.
Participatory democracy. The solidarity economy embraces participatory democracy by enabling decision-making and action to be as local as possible, thereby providing ways for people to participate directly in decisions that directly affect their communities.[2]
Towards a solidarity-driven model
The solidarity economy looks at developing real and substantial relationships of economic support and exchange throughout networks of solidarity economy actors. Where are people already engaging in activities and relationships that embody values of solidarity, cooperation, equity, sustainability, democracy and pluralism?[3] Below are certain critical questions.
Creation. Where do raw materials come from? How do we honor and share the collective gifts of the environment? How do we preserve and transmit cultural resources such as language, stories, music, ideas, and skills? The solidarity economy assumes that nature and cultural creation should be shared and held in common trust.
Production, transfer and exchange. How can resources be produced and transformed in a way that furthers these principles? How can goods and services move from production to consumption in ways that support solidarity values? How can we do so in a way that preserves the value generated by our current economic model? Through what kinds of cooperative institutions are people and communities organized as consumers?
Surplus allocation. How is surplus, generated in the economic cycle, appropriated and used in ways that foster solidarity values? Today, much of the asset management sector focuses on reinvesting surplus. How can this model be used to support solidarity financing structures such as credit unions, cooperative loan funds and savings and credit associations, as well as gifting practices and other reinvestment models such as recycling?
Governance. What kinds of policies, procedures and rules support a context in which solidarity-based initiatives can thrive? This can include examples of participative decision-making in traditional for-profit structures as well as supporting cooperative and equitable economic structures. It can also include improving transparency and citizen oversight over governments (i.e., participatory budgeting, cooperatively-structured service provision, financing support, state aid and incentives and flexible legal structures).
Challenges in building a solidarity economy
There are significant challenges involved in building a solidarity economy. On the one hand, mindsets need to be overcome, including the skepticism that alternatives are possible. Differences arising from race, ethnicity, class and organizational capacity must be addressed through deep internal work and relationship-building. Additional resources must be generated and directed towards the core work of organizing and supporting the startup of alternatives.
This requires seeing the solidarity economy in a holistic way: as a transformative social movement. It also involves innovation, a willingness to “fail forward,” an ecosystem approach to building and scaling, support for incubation infrastructure, connecting initiatives and a deep commitment to building the solidarity finance sector, with funders and investors who see themselves as part of, and not apart from, the movement.
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[1] Miller, E. “Solidarity economy: Key concepts and issues. Building alternatives for people and planet,” 2010.
[2] Emily Kawano, “Solidarity Economy: Building an economy for people & planet,” 2016
[3] Azam, Geneviève. Économie sociale, tiers secteur, économie solidaire, quelles frontières ? Revue du MAUSS, vol. No 21, no. 1, 2003.
