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Sowing the Seeds of Solidarity Economy Asian Experiences 1 SOWING THE SEEDS OF SOLIDARITY ECONOMY: ASIAN EXPERIENCES Benjamin R Quinones Jr 2 Sowing The Seeds of Solidarity Economy @ Benjamin R Quinones Jr (2012) Published by JJ RESOURCES for Centre for Social Entrepreneurship Binary University College Malaysia ISBN 978-983-40989-2-6 Designed by INGARA DESIGNS & CONNECTION Printed by SAMPOORNA No 1, Jalan TIB 1/19 Taman Industry Bolton 68100 Batu Caves Selangor Darul Ehsan Asian Experiences 3 TABLE OF CONTENTS Foreword Datuk Dr Denison Jayasooria 5 1. OBJECTIVES OF THE ASIAN FORUM 7 Goodwill March and Inaugural Session 2. WHAT IS SOLIDARITY ECONOMY ? 15 3 WHO DETERMINES RESOURCE 26 ALLOCATION IN SOLIDARITY ECONOMY? Ownership Structure and Price Determination Giving Impetus to Solidarity Economy through Social Currency 4. SOCIALLY RESPONSIBLE GOVERNANCE & 52 SERVANT LEADERSHIP Rethinking Global Governance Socially Responsible Governance: Illustrative Cases What is Servant Leadership? Servant Leadership in PracitceL Illustrative Cases 5 SOCIALLY RESPONSIBLE INVESTMENTS (SRIs) 82 SRIs – Who They Are, What They Do SRIs in Asia CSR: How it is Measured SRIs in Practice: Illustrative Cases 4 Sowing The Seeds of Solidarity Economy 6. SOCIALLY RESPONSIBLE FINANCING: THE CASE OF MICROFINANCE 114 What is Social Performance of Microfinance? Social Performance, Social Rating, & Impact Assessment Social Performance in Action: Illustrative Cases 7. SOCIALLY RESPONSIBLE ENTERPRISES (SREs) 147 The Fair Trade Model Key Principles of Fair Trade The Fair Trade Market Today Challenges to Fair Trade From Theory to Practice: Illustrative Cases 192 8. SOLIDARITY ECONOMY AND ARTS 9. SOWING THE SEEDS OF SOLIDARITY 199 ECONOMY IN THE PHILIPPINES 10. BEYOND THE CALL OF PROFIT by Jeanne Marie O. 203 Bernardo 11. IMPRESSIONS ON THE ASIAN FORUM 208 12. THE WAY AHEAD 214 Notes 221 References 223 Asian Experiences 5 Foreword Datuk Dr Denison Jayasooria Hon Chairman, Centre for Social Entrepreneurship, Binary University College & Principal Research Fellow Institute of Ethnic Studies (KITA), National University of Malaysia (UKM) There is a global movement of people at the grassroots who are innovating new approaches to wealth creation and distribution. They recognise that the current dominant models are not only creating greater inequalities among people and damaging the environment. They also note that these are unsustainable ways and therefore have ventured to create their little revolution for social justice. The little revolutions for socio-economic transformation have overtime grown into a movement of people creating an alternative economy. When 700 people from 26 different countries gathered in Manila from Oct 17 to 20, 2007 they demonstrated through their sharing of experiences that they are not alone. They have taken hold of their destiny and have carved a new pathway for a more just and fair economic sharing among the poorest in Asia. Ben Quinones has very skilfully documented the sharing of experiences in this journey towards a more just and fair economy. It is imperative that these experiences be shared to a much wider audience and therefore this publication will facilitate this objective. “Sowing the seeds of solidarity economy: Asian experiences” is a very useful document which captures the emerging alternative Asian models. It is launch during the Third Asian Forum for Solidarity 6 Sowing The Seeds of Solidarity Economy Economy in Kuala Lumpur (Oct 31-Nov. 2, 2011). This book will enrich the learning journey process and lay the foundation of new comers. Ben Quinones captures the vision, potential, achievements and challenges faced by the early pioneers in social/solidarity economy in Asia. Many of them are still actively working in the field and therefore the presenters of new case studies can note the concerns of those who went before them. This book will also be a very useful tool for teachers, trainers and students in social economy and social entrepreneurship especially from reading of a vast cross section of Asian experiences with a tremendous wealth of experiences from Philippines. On behalf of the Asian Social Entrepreneurship Coalition & Centre for Social Entrepreneurship, Binary University College, I would like to congratulate Ben Quinones and commend this publication for your reading and study. Our humble prayer is that the reading of this publication will not only inspire you to undertake concrete projects on the ground but also motivate you to write and document your experiences so as to inspire others too. In so doing we are part of an unstoppable chain of actors who will establish a new economic order that is just and fair to all especially the poor and low income in our lands. Asian Experiences 7 1 Objectives of the Asian Forum Close to 700 delegates from 26 countries attended the Asian Forum for Solidarity Economy at the Bahay ng Alumni inside the campus of the University of the Philippines in Diliman, Quezon City of the Philippines on 17-20 October 2007. Around two-thirds of the delegates were women (see ‘Fact & Figures about the Asian Forum’ below), comprised mostly of young Filipino women who donned their bright national dress on the first day of the Forum, providing the warmth of friendship and solidarity that made everyone feel welcome and comfortable. The Asian Forum for Solidarity Economy was organized by the Coalition of Socially Responsible SMEs in Asia (CSR SME Asia) with the support of the Charles Léopold Mayer Foundation for the Progress of Humankind (FPH) and the Canadian International Development Agency (CIDA). The first of its kind in Asia, the Asian Forum for Solidarity Economy was an unprecedented event where various stakeholders met to: • articulate a uniquely Asian solidarity economy as a people- and eco-centered way of governance over the production, financing, distribution, and consumption of goods and services; 8 Sowing The Seeds of Solidarity Economy • deepen reflections on solidarity economy in Asian countries; • initiate a mapping of solidarity economy stakeholders in Asia in order to establish a base from which to build both knowledge and best practices; and • build an advocacy and resource network of various organizations and networks involved in the dynamics of solidarity economy in Asia, and facilitate exchange of knowledge and best practices among them, and between them and their counterparts in other continents The Asian Forum came at a time when interest is growing for alternatives to the current global economic system that has only deepened the wedge between the haves and the have-nots, and further alienated those who are already marginalized. Those who came to the Forum were looking for answers to some crucial questions: Are there alternative economic systems in Asia that put premium on meeting people’s basic needs and environmental conservation over and above profits? What do these alternative economies have in common? Do they share the same vision on what ‘solidarity economy’ is supposed to be? Are they part of a coherent vision for an alternative global economic system or are they only random examples? Who are the main stakeholders involved? What strategies can be built to enhance business links among them? These questions and more were addressed by participants of the Asian Forum. Asian Experiences 9 Facts and Figures about the Asian Forum 2007 Workgroup Delegates Male Female Total Socially Responsible Governance Charter of Human 71 122 193 Responsibilities (36.8%) (63.2%) (100.0%) Servant Leadership 60 131 191 (31.3%) (68.6%) (100.0%) Socially Responsible 9 4 13 Investing (69.2%) (30.8%) (100.0%) Socially Responsible 15 19 34 Enterprise (44.1%) (55.9%) (100.0%) Socially Responsible 6 11 17 Financing (Microfinance) (35.3%) (64.7%) (100.0%) Trade Exhibitors 14 28 42 (33.3%) (66.7%) (100.0%) Media, artists, educators 24 28 52 (46.2%) (53.8%) (100.0%) Volunteers 53 73 126 (42.1%) (57.9%) (100.0%) GRAND TOTAL 252 416 668 (37.7%) (62.3%) (100.0%) Note; The above figures were based on the registration list submitted by each Workgroup. During the actual conduct of the workshops, delegates registered with the workgroups of the Charter of Human Responsibilities and Servant Leadership were distributed to other workshops. 10 Sowing The Seeds of Solidarity Economy Goodwill March and Inaugural Session Delegates assembled at the University Hotel early in the morning of October 17 to join the goodwill march to Bahay ng Alumni, the venue of the forum. They were welcomed at the conference hall by the Master of Ceremonies Romulo Romero, the Vice-Chairman of CSRSME Asia Vice-Chairman and Managing Director of OTI Consulting Philippines. Romero opened the Asian Forum with the singing of the Philippine national anthem and recital of the national Oath of Allegiance, followed by a vibrant praise and worship led by Pastor Ernie Palacio. Pastor Eduardo de Guzman, CSRSME Asia Board Member and Vice-Chairman of Intercessors for the Philippines, led the opening prayer and shared the Word of God. He explained the relevance of establishing righteousness in the eight pillars of society (family, church/ belief system, government, economy & business, education, science & technology, media & arts, entertainment & sports) in building a solidarity-based society. “Righteousness exalts a nation, but sin is a reproach”, De Guzman quoted the Bible. He exhorted the delegates to establish righteousness in all eight pillars of society in order to ensure that a solidarity-based economy can prosper, truly serve the basic needs of man, and ensure environmental conservation. CSRSME Asia Chairman and Forum Organizer Benjamin Quiñones, Jr. welcomed the delegates from 26 countries. He acknowledged with profound gratitude the contributions of the main sponsors of the Forum – the Charles Leopold Mayer Foundation and the Canadian International Development Agency (CIDA) – as well as the partner organizations that made the event possible. In his speech, Quiñones briefly explained that the term ‘Solidarity Economy’ is translated into the Filipino language as the “Bayanihan Compassionate Economy”. Bayanihan is a Filipino word that denotes solidarity, cooperation, and sacrificial giving in a mutually Asian Experiences 11 reinforcing reciprocity.
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