Ben quinones

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Ben quinones

  1. 1. Social Solidarity Economy (SSE): Emerging Concepts & Models by Dr. Benjamin R. Quiñones, Jr. President & CEO Asian Solidarity Economy Council (ASEC) October 16, 2013 Aldaba Theater, University of the Philippines Quezon City, Philippines
  2. 2. SSE & MARKET ECONOMY Social Solidarity Economy (SSE) is an economic system developed by ordinary people as an alternative to the neoliberal market economy. SSE: organizations use social norms, ethics, other social philosophies to influence consumer behavior. Economic transactions are guided by core values, sociological and political relationships. Market economy: the principal direction of influence is reversed: economic factors shape politics and sociology (De Long, 1997)
  3. 3. FOCAL POINT OF DEVELOPMENT Market economy: The ENTERPRISE – e.g. company, cooperative, NGO, people’s organization. The orientation is profit over people and planet. SSE: The COMMUNITY, where the household is the basic unit and the territory defines the resources for the community’s development. The orientation is people and planet over profit.
  4. 4. Capture the SSE mindset 1. Reflect on the assumptions of your development paradigm. The problem of poverty consists of two inter-related aspects: (i) the short-term issue of lack of access to resources needed for overcoming poverty, and (ii) the longer-term issue of the absence of an alternative economy for, by, and the the poor, socially excluded, & marginalized. 2. Learn to scrutinize every development intervention (e.g. microfinance, organic farming, fair trade, coop devt, etc) in terms of its capacity to: (i) address the immediate problem of lack of access to resources; & (ii) tackle the longer term problem of developing SSE as an alternative economy. 3. Re-orient your resources towards the great transition to SSE.
  5. 5. Developing SSE thru people-owned & managed community company 1.The COMMUNITY rather than the ENTERPRISE is the dominant mode of organizing life. The enterprise is subordinate to the community rather than the other way around. In SSE, the towns are not owned by companies. Instead, companies are owned by townspeople. In other words, SSE establishes community companies, not company towns. 2. The basic unit of the community is the HOUSEHOLD, not the enterprise. The community is the HOLDING COMPANY that has a stake and controlling interest in all the enterprises. Roxas (2006) argues that the household, being co-owner of the community holding company, has a claim on outputs, just as land and capital are (e.g. claims of landlord, trader, etc.)
  6. 6. Developing SSE thru people-owned & managed community company 3. The community holding company (CHC) is the integrator of local supply chains. Instead of developing individually the micro/small enterprises producing the same product and competing for consumer patronage, the CHC integrates production at the community level & facilitates relationships between producers & households as consumers. 4. The CHC resolves the issue of the participation of households in the governance of economic activities. Having roots in the family, the CHC can use social norms, ethics and other social philosophies to influence consumer behavior. Its economic transactions can be guided by core values shared by the households and by their sociological and political relationships
  7. 7. Developing SSE thru people-owned & managed community company 5. The community holding company bears the two fundamental dimensions of SSE: (i) ethical values, and (ii) social mission-oriented governance. The community holding company can sustain its social mission when member-households steadfastly adhere to edifying ethical values. Ethical values are the basis of the community holding company’s vision and social mission. 6. Three other dimensions of SSE – (i) products and services that meet basic needs of households, (ii) ecological conservation, and (iii) economic sustainability – constitute the community holding company’s triple bottom line.
  8. 8. CHALLENGES IN SSE DEVELOPMENT For the Households Households are citizens of the community and owners of the community holding company. Basic human rights of individuals are respected & defended against injustices. Respect for human rights of citizens is balanced by a deep sense of awareness and accountability to one’s social responsibilities. Citizens who have more - in terms of power, education/ information, wealth/resources, physical strength, etc. - have greater social responsibilities. For the Helping Organization -Affirmation of households as the basic unit of the community, rather than the enterprise; - Integration of enterprises into community-based supply chains where households are both owners & workers; and - Transformation of the community into a holding company that directs and manages all community-based supply chains.
  9. 9. CONSUMER RETAILER ASSEMBLER/W HOLESALER COOPERATIVE: Rice Production INPUTS
  10. 10. Case 1: Onion Supply Chain 8 Cluster Strengthening 7 Scaling Up 6 Marketing 5 Cluster Production The Cluster Approach 4 Cluster Formation New Clusters/ Enterprises 1 Partnership Building 2 Product Supply Assessment 3 Market Chain Study
  11. 11. Case 2: RICE SUPPLY CHAIN - Farm Integration Development Approach (FIDA) Training Community Base Social Preparation Marketing Linkages Warehousing Production loan Processing Production
  12. 12. Case 3: The Dairy Farm Supply Chain Milk Feeding Market Milk Processing Plant FF FF FF FF FF FF FF FF COOP COOP FF FF FF FF FF FF FF FF FF FF FF FF FF FF COOP FF FF FF FF FF FF COOP FF FF FF FF FF FF FF FF FF FF FF FF
  13. 13. Solidarity from local to international levels & across various stakeholders & economic functions in the supply chain Export Overseas Filipino Workers (OFWs), foreign & local investors (DIP) DIP (Dairy Innovative Partners) Milk Animals Coops Coops Coops Coops Milk Animals Animals Dairy Plant Milk Males Breeders Breeders Breeders Local Market Animals Small-hold Farmers Meat Processing
  14. 14. ADVANTAGES OF THE COMMUNITY HOLDING COMPANY (CHC) FRAMEWORK OF ANALYSIS 1. CHC represents a multi-stakeholder, multi-enterprise model of solidarity, risk sharing, and shared human responsibilities that are required to meet people’s needs at the community level. CHC takes collective action at the community level that includes and benefits both the poor and the non-poor. 2. The CHC provides a platform for local people to work out the complexity of social and economic relationships among stakeholders within a given community or territory as well as between the community and external economic actors;
  15. 15. 3. The CHC allows development planners to locate the cost burden of institutional change as enterprises in the community transition from a purely economic or financial orientation to the triple bottom line of social development, ecological conservation, and economic sustainability; 4. The CHC is an appropriate development partner of the government and the private sector for reorienting Corporate Social Responsibility (CSR) towards supporting inclusive and sustainable development at the community level; and
  16. 16. 5. The CHC is a natural, grassroots level instrument for the promotion and implementation of a Universal Declaration of Human Responsibilities (UDHR), as the third pillar of international law in addition to the first two pillars – the UN Charter and the Universal Declaration of Human Rights.
  17. 17. BASIC FEATURES OF CHC 1. ETHICAL VALUES DIMENSION PEOPLE and PLANET over PROFITS Human beings control capital, not instruments of capital Solidarity in wage rates between management & workers Solidarity, cooperation, equity, reciprocity
  18. 18. 2. GOVERNANCE DIMENSION  community-based supply chains are organized & self-managed by households  inclusive: ordinary people participate in decisionmaking  benefits & profits shared by ordinary people as co-owners/co-managers of communitybased supply chains
  19. 19. 3. SOCIAL DEVELOPMENT DIMENSION Explicit aim of production: community benefit (basic needs – food, shelter, clothing, health, education) Social responsibility directed at building sustainable communities Shared responsibilities approach to development Vehicle for social inclusion & sustainable development
  20. 20. 4. ECONOMIC SUSTAINABILITY DIMENSION the CHC undertakes business activity, creates economic value added ordinary people bear economic risks; business risks spread over various stakeholders & enterprises ensures business viability thru shared responsibilities of ordinary people towards people & environment profits shared to cover human & ecological costs of development
  21. 21. 5. ECOLOGICAL CONSERVATION DIMENSION promotes the protection of species, their habitats, and ecosystems from excessive rates of extinction aims to sustain the community’s economic and social progress
  22. 22. Application of CHC Framework: The Case of Free-range chicken supply chain Input Supply Production Market/Consumer On Eagle’s Wings Foundation (OEWF) On Eagle’s Wings Foundation On Eagle’s Wings Foundation New Tribes Mission (NTM) New Tribes Mission New Tribes Mission Banaban Community Organizations (BCO) Banaban Community Banaban Community Organizations Organizations Shared Vision Cooperative (SVC) Shared Vision Cooperative Bumbaran Development Corporation (BDC) AgriChexers Corp. Braveheart Farm(BHF) Shared Vision Cooperative Bumbaran Development Corporation
  23. 23. Overall Assessment Stakeholder D1 D2 D3 D4 D5 Average OEWF 3.00 3.00 2.25 3.00 3.00 2.85 NTM 3.00 3.00 1.50 3.00 3.00 2.70 SVC 3.00 3.00 2.25 2.25 3.00 2.70 BDC 1.00 3.00 3.00 3.00 3.00 2.60 AgriChexers 0.50 0.33 0 1.25 1.00 0.62 BHF 0.50 0.33 0.75 3.00 2.00 1.32 1.83 2.10 1.62 2.58 2.50 2.13 Average
  24. 24. THE NGO PARTNERS ALL NTM GOVERNAN CE 3 2.5 2 1.5 1 0.5 0 GOVERNANCE 3 ENVIRONM ENT 2 ENVIRONMENT 1 ETHICAL ETHICAL 0 ECONOMIC ECONOMIC SOCIAL OEWF SVC GOVERNAN CE GOVERNANCE 3 2 ENVIRONM ENT 1 ETHICAL 0 ECONOMIC SOCIAL ENVIRONMEN T 3 2.5 2 1.5 1 0.5 0 ETHICAL SOCIAL ECONOMIC SOCIAL
  25. 25. THE PRIVATE ENTERPRISE PARTNERS ALL Agrichexers GOVERNANCE GOVERNANCE 3 1.5 2 ENVIRONMENT 1 ETHICAL 1 0 ENVIRONMEN T SOCIAL ECONOMIC GOVERNANCE CE 3 2.5 2 1.5 1 0.5 0 SOCIAL BHF BDC GOVERNAN ECONOMIC ETHICAL 0 ECONOMIC ENVIRONM ENT 0.5 ETHICAL SOCIAL ENVIRONMEN T ECONOMIC 3 2.5 2 1.5 1 0.5 0 ETHICAL SOCIAL
  26. 26. ACTUAL (PRACTICE) vs. IDEAL (CONCEPT) 3 2.5 2 1.5 1 ACTUAL 0.5 0 IDEAL IDEAL ACTUAL
  27. 27. CONCLUSIONS & THOUGHTS FOR FURTHER REFLECTIONS In the Philippines, the objective conditions are ripe for civil society, cooperative movement, and communities to develop SSE as a new model of development. Rather than economic transactions influencing sociological & political relationships, ethical values should influence the way people organize their economic activities.

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