Alternative Economic
Development
Social
Enterprise
Micro finance or credit
Ecotourism
Fair Trade
Artesianry
Community Based Natural
Resource Management
Social
Enterprise
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Basic principle:
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for profit business
Profits go towards social development/social
justice agendas
Values driven
Intersection of
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corporate responsibility movement
(http://www.hbs.edu/socialenterprise)
self sustaining non-profits (http://www.sealliance.org/index.cfm
Fundación Social-Colombia
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Foundation that owns a group of 14 for-profit
businesses
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Originated in 1911: Father Jose Maria Campoamor:
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Finance, construction, health, recreation, communications
Circulo de Obreros de Bogota
Caja social: small scale savings and credit program
Now:
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$1.8 billion in assets
$35 million annual profits
One of FS’s subsidiaries:
Banco Caja Social
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headquartered in Bogota
122 branches in 40 cities throughout Colombia.
total assets of $510 million/ 10th largest commercial
bank in the country
95% of its clients are individuals, either salaried or self
employed.
78% of them make less than $5,000 annually
70 percent have only basic education.
Homes and business represent the largest portfolio of
BCS.
Four pillars of FS
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Companies
Social Programs
Macro Influence
“thought production”
FS Social programs
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Focus on poorest, employ holistic
replicable strategies with long term time
frames
Basic goals
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Social harmony
Consolidation of strong, autonomous and
democratic community organization
Higher quality of life
Full and active participation of poor people
FS Social Programs
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10 programs/5 themes:
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integrated community development
Income generation
Recycling and environment
Education
Communication
Community Development
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Form a community organization
Develop programs according to community priorities
Fundacion staff train and advise
Neighborhood centers become geographical focus of
organization
FS Social Programs
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Enterprise:
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Recycling and Environment
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Waste handled by businesses/generates income and cleaner
environment
Communication:
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train small businesses in efficient, competitive manufacturing
Link into trade networks
Network of teachers, mayors community leaders collaborate
on messages to strengthen democratic values
Education
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Broad based education is a right/contributes to popular
organizing: adults and children
FS: 2 other pillars
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Macro influence:
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works to influence state level policies, legislation and programs
that address “structural” inequalities.
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Education laws
Social security
Venue to expand citizen voice in government
Thought production
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Encourages all employees and participants to contribute to
creative ‘research and development’
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Citizen based research and planning
Micro finance/credit: wide range of
forms*--need to specify which one
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Traditional informal microcredit (such as, moneylender's
credit, pawn shops, loans from friends and relatives,
consumer credit in informal market, etc.)
Microcredit based on traditional informal groups (such
as, tontin, su su, ROSCA, etc.)
Activity-based microcredit through conventional or
specialised banks (such as, agricultural credit, livestock
credit, fisheries credit, handloom credit, etc.)
Rural credit through specialized banks.
*Mohammed Yunus categorization
Micro finance/credit: wide range of
forms *
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Cooperative microcredit (cooperative credit, credit
union, savings and loan associations, savings banks,
etc.)
Consumer microcredit
Bank-NGO partnership based microcredit.
Grameen type microcredit or Grameencredit.
Other types of NGO microcredit.
Other types of non-NGO non-collateralized microcredit
Grameen Bank
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http://www.grameen-info.org/
Structures of inequality and poverty are KEY:
“based on the premise that the poor have skills which
remain unutilized or under-utilized. It is definitely not
the lack of skills which make poor people poor.
Grameen believes that the poverty is not created by
the poor, it is created by the institutions and policies
which surround them. In order to eliminate poverty all
we need to do is to make appropriate changes in the
institutions and policies, and/or create new ones”
Disbursements:
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Since 1976: $4.18 billion, $3.78 billion repaid so far
Projected 2004 disbursement: $445 million
Grameen Bank
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“credit as a human right”
help poorest families (esp. women) to help
themselves to overcome poverty.
creating self-employment for incomegenerating activities and housing for the poor,
as opposed to consumption.
Grameen Bank
alternative credit approach
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challenge to the conventional banking
which rejected the poor by classifying them
to be "not creditworthy".
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not based on any collateral, or legally enforceable
contractsbased on "trust",
bank should go to the people.
All loans are to be paid back in installments (weekly,
or bi-weekly).
Generally these loans are given through non-profit
organizations or through institutions owned primarily
by the borrowers.
GB Political and Social Agenda
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Building social capital. In order to obtain loans a
borrower must join a group of borrowers.
Political and leadership capacity building: annual
election of group and centre leaders, electing board
members when the institution is owned by the borrowers.
“16 decisions” http://www.grameeninfo.org/bank/the16.html.
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Now, not mandated, but process of intensive discussion among
the borrowers is encouraged to take these decisions seriously
and implement them.
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human capital and concern for protecting environment.
children's education,
to bring technology, like mobile phones, solar power, and promote
mechanical power to replace manual power.
SEWA: Self Employed Women’s
Association in India
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www.sewa.org