SSE Movement Proposes ‘Economy Centered on People’

Cooperatives, self-help societies, associations, foundations and social enterprises in the Visayas have gathered last week at Golden Prince Hotel & Suites, discussing one agenda that proposes an interesting solution in alleviating poverty in the country: Social Solidarity Economy (SSE).

Social Solidarity Economy or a better economy alternative, is a movement that calls for a humane, inclusive, sustainable and ethical economic governance of the nation. The call targets the poor and marginalized people as the direct benefactors of programs initiated by it.

Accordingly, the 7.5 % increase in the economy during the second quarter of this year is largely attributed to the contributions of the big corporations and conglomerates in the Philippines, which include businesses in mining, power, logging, telecommunications, real estate, retail and the likes. However, there is a question posed from those coming from the Micro Small and Medium Enterprises (MSMEs).

Lacsamana discussing on the appropriations sought for the proposed PRESENT (poverty reduction through social entrepreneurship) Bill.

Jay Beltram Lacsamana, executive director of the Foundation for a Sustainable Society(FSSI), said these (MSMEs) have not given a share in the increase in the economy, thus making the growth exclusive to big corporations and conglomerates only. FSSI is an organization that seeks to apply innovative fund utilization that will bring about environmental, social and financial returns by honing social enterprises.

Moreover, Dr. Ben Quinones, president of the Asian Solidarity Economy Coalition in the Philippines, said there is a problem with addressing poverty in the nation since the ‘poor people just go back to their old predicament.’

“We are creating an economy that is systematically creating poverty. We lack a framework for alternative economy. We have been doing so much in empowering the poor but still go back to the same economy that breeds that problem. We are still being fed into the machine of neo-liberal economy,” he said.

Quinones said the social solidarity economy movement seeks to build an economic model centered on people. It is based on practices of cooperation and solidarity between communities and groups, above individual actions or entrepreneurship. This economy produces goods, services and knowledge while pursuing economic and social aims and fostering unity.

Quinones elaborated that the Social Solidarity Economy (SSE) is the better alternative economy because it unifies both the producers and the consumers, and results into a self-sustaining economy that benefits the poor and marginalized socially and financially, and the environment.

“The solution is solidarity. Producers are small, so they must form solidarity to mass produce and therefore give cheaper products to consumers. Producer and consumers can agree on what to produce and the result is a self-sustaining economy, ” Quinones added.

Quinones conducted a study on this idea, which is partly a basis of the SSE as a bill. The SSE bill aims to be complementary with government programs on poverty alleviation in the country. Lacsamana, on the other hand, co-convenes in the PRESENT ( poverty-reduction through social entrepreneurship), a coalition comprised of social enterprises that aim to seek partnership with the government, and seeks appropriations for its cause.

The proposed PRESENT bill seeks to promote an economic planning that makes economic players more productive and engaged. The key components of the SSE bill includes recognition of social enterprises as partners in poverty reduction; and eligibilities of social enterprises such as investing a substantive part of its profits to assist the poor to become partners in the value chain.

The bill also seeks provision of programs that support social enterprises such as research and development and market research; and incentives such as special credit windows ingovernment banks and financing institutions, and tax exemption for both the social enterprise and donors.

The bill is presently lobbied in the 16th congress and already introduced by Representatives Cresente Paez, Anthony Bravo, Teodoro Baguilat and Senator Benigno “Bam” Aquino IV.

Present during the press conference scheduled within the convention, were Earl Parreno of SEED (Negros) and Gigi Labradores of the Southern Fair Trade Center Cebu (SPFTC). Fellows from Cebu, Negros Occidental, Leyte, Bohol, Iloilo, Tacloban, Biliran and Guimaras were among those participants in the conference. The conference was sponsored by FSSI, Asian Solidarity Economic Council and SPFTC.

The outcome document of the gathering will be presented to the Reseau Intercontinental de Promotion de l’economie Sociale et Solidaire (RIPESS), an intercontinental network that connects social and solidarity economy networks throughout the world.

RIPESS is set to have its International Conference in Manila on October 15-18, 2013 at the University of the Philippines – Diliman Campus in Quezon City.