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Chuinti13 economy of common goods

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economy of common goods …

economy of common goods
Rosario Gómez, Universidad de Sevilla

Published in: Economy & Finance, Business

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  • 1. Economy for the Common good “It’s is freedom of expression that we, human being, organise the world we live in” Rosario Gómez-Alvarez Diaz Professor at University of Seville
  • 2. What percent of people is unhappy? How have been economic benefits and labour charges shared in your country during the last years? “Unfairly” *Trends per country, 2008-2012 Global survey -BBC World Service: 22 countries. 2
  • 3. Economy for the Common good Christian Felber : New values for economy (2008), with the aim of avoiding a fruitless discussion: “Who is against Capitalism, is for Communism”. “Economy for the Common good” proposed with a group of Austrian entrepreneurs ( 2010). 3
  • 4. Wconomy for the Common good Ethical contradiction: The values of the companies in the market ≠ the values we want in our human relationships Human values: Trust, honesty, responsability, cooperation, solidarity, generosity and compassion… An economy that benefits everyone: Common Good 4
  • 5. Changing the rules of the game Today: Common Good? Future: Common Good ▲ ▲ Competence Cooperation ▲ ▲ Profit Contribute to Common Good 5
  • 6. Results of market economy The company to survive in the market Minimum costs for the company = Maximum costs for the rest The capitalist market enables the unlimited accumulation of benefits because the law system allows it Barriers to Market Entry 6
  • 7. Results of market economy RESULTS OF MARKET ECONOMY: There is twice the amount of food for world population not to suffer from hunger (almost 1,000 millions of 7,000 millions) Environmental deterioration Inequality Economic insecurity Unemployment GDP DOESN’T MEASURE HOW PEOPLE LIVE 7
  • 8. How to measure the success in economy? “What we measure affects what we do; and if our measurements are flawed, decisions may be distorted” Joseph Stiglitz, Nobel prize winning economist Common Good measurements Microeconomic level: Common Good Balance of organizations Macroeconomic level: Common Good Product 8
  • 9. The Balance of Common good, another way of measuring productivity This is the basic reference success indicator for an organization 5 essential values: HUMAN DIGNITY SOLIDARITY ECOLOGICAL SUSTAINABILITY SOCIAL JUSTICE DEMOCRATIC AND TRANSPARENT PARTICIPATION With regard to this stakeholders: SUPPLIERS SUBSIDISERS EMPLOYEES CLIENTS SOCIETY 9
  • 10. 10
  • 11. VISIBLE RESULTS
  • 12. What are the advantages of the ethically responsible behaviour? Companies with good common welfare balances will enjoy legal advantages: Reduced tax rates Beneficial fees Inexpensive credits Privileges in public procurement and to get researching programmes, and so on and so forth. 13
  • 13. Non-allowed applications of the benefit Swallow other companies up Sharing with people not working in the company Political party donations Financial Investments Financial markets disappear and are substituted by a democratic bank that lends according to the savings gained and charges to cover the costs. 14
  • 14. What will the benefit be used for? Investments with social and ecological added value Credit refunds Deposits in limited reserve Extra pay for employees in a restricted way Credit without interests for cooperative companies Excess won’t be used to credit people not working for the company. IMPLICATIONS: if the company grows cannot either accumulate more benefits or create entry barriers 15
  • 15. Unlimited growth? “In nature, growth is just a way of aspiring to the optimum size” Leopold Kohr (“Small is beautiful”)
  • 16. Top managers : Minimum salary • Austria • Germany • USA (industry) • USA (financial industry) 800 times 5000 times 65.000 times 360.000 times
  • 17. Employment The source of income comes from the work Employment is shared Limited salaries allow to share them and not to appropriate the others’ work Companies creating employment are awarded Companies look for joint solutions for unemployment problems Sabbatical year does exist 18
  • 18. Inequality in Spain In 2013: the number of millionaires grew a 13% in the country The difference of patrimony between the 25% of the richest homes and the 25% of the poorest ones raised from 39,3 to 50,4 times from 2005 to 2011. Poverty risk: 28,2% Social Barometer in Spain 19
  • 19. Limits to property accumulation  Limit income inequality (factor 20)  Limit the private property (10 million €)  Democratize companies (> 250 employees)  Maximum and minimum inheritance (“democratic dowry”) 20
  • 20. Bottom-up participation processes SOCIALLY SPEAKING: EDUCATION: SHARED VALUES AS COOPERATION AND NO COMPETENCE COMMON GOODS: SELF-ORGANIZATION PUBLIC SERVICES: “CITIZEN COMPANIES” ECONOMICALLY SPEAKING: THE COMPANY GENERATES COMMON WELFARE INSTEAD BENEFIT CCUMULATION FOR THE CAPITAL POLITICALLY SPEAKING: REPRESENTATIVE DEMOCRACY+DIRECT+PARTICIPATIVE EBC (Common Welfare Economy) is a cooperative market economy Is a project for a cooperative society 21