Solidarity Economy and Social Business: New Models for a New Society (SpringerBriefs in Economics)

This book presents theoretical examinations of why and how connecting people yields different results from those of the market mechanism alone. With an ever-greater disparity between the worldℓ́ℓs rich and poor, actions have been taken to remove the imperfections and remedy malfunctions of the market mechanism. An underlying theme of these activities is to connect people and make them directly visible to one another; thus the integrating concept of the ℓ́ℓsolidarity economyℓ́ℓ emerges. This volume analyzes diverse examples and practices of solidarity economy. Adam Smith emphasized the importance of ℓ́ℓsympathyℓ́ℓ among people and the role of the ℓ́ℓimpartial spectatorℓ́ℓ in order to control otherwise reckless markets. These major concepts form the basis of a solidarity economy. The examples and practices in this book are based on this framework. The first is the idea of social business, promoted by Prof. M. Yunus of the Grameen Bank. Although the group of five members in the Grameen Bank organization is considered a system of mutual surveillance by some economists, it is not a system based on distrust but a mechanism for mutual help and encouragement. Also examined in this book is organic agriculture, which adheres to the necessity of face-to-face relationships. It pursues environmental concerns and food safety by bringing together consumers and producers in local areas and by sharing knowledge. When consumers and producers are widely separated, a system of certification assures consumers that no chemical pesticides and fertilizers are used. Connecting consumers and producers through certification systems can be seen as part of fair trade mechanisms. These mechanisms are applied in certified coffee programs, for instance, to reduce poverty, to protect the environment, and to safeguard human rights. This book proposes that all these seemingly different types of activities can be understood as part of the solidarity economy. With this unifying theme, the book will be useful for both theoretical investigations and practical applications Preface 6 Contents 8 1 Solidarity and Social Business: Theoretical Background 9 Abstract 9 1.1 Introduction 10 1.2 Health and Happiness: Intrinsic Value of Solidarity 12 1.3 The Capability Approach for Better Society 14 1.3.1 Amartya Sen’s Capability Approach 15 1.3.2 Reasoning: Beyond Selfish Economic Man 16 1.4 Sustainability of Solidarity Economy 17 1.5 Social Business in Solidarity Economy 17 1.6 Further Considerations 19 References 19 2 Microcredit, Inclusive Finance and Solidarity 20 Abstract 20 2.1 Introduction 20 2.2 Development of Microcredit 21 2.3 Effectiveness of Microcredit as Social System 23 2.3.1 Grameen Bank 23 2.3.2 BRAC 26 2.3.3 Factors for Success 27 2.4 Grameen Model of Social Business as Solidarity 28 2.5 Credit, Inclusive Finance, and Recent Development 30 2.6 Further Considerations 31 References 32 3 Grameen-Model Microcredit in a Developed Country: Spain 33 Abstract 33 3.1 Introduction 33 3.2 The Establishment of Foundation ICO Microcredit Pilot Project 34 3.3 Target Beneficiaries 35 3.4 Basic Philosophy 35 3.5 Organization 36 3.6 Basic Methodology and Activity 36 3.7 Project Performance 39 3.8 Further Considerations 39 References 40 4 Renewable Energy Resources for Villages Off the Grid 41 Abstract 41 4.1 Introduction 41 4.2 Overview of Grameen Shakti 42 4.2.1 Solar Home System 43 4.2.2 Biogas Program 44 4.2.3 Improved Cooking Stove Program 46 4.2.4 Grameen Technology Center 47 4.3 Impact on Rural People 48 4.4 Further Considerations 49 References 50 5 Yogurt for the Poor: Progressive Nutrition 51 Abstract 51 5.1 Introduction 51 5.2 Overview of Grameen Danone Foods 53 5.3 Distribution System 53 5.4 Workshops on the Product’s Nutritional Value 54 5.5 Impacts of the Program on the Rural Communities 54 5.6 Further Considerations 56 References 57 6 Distributing Clean Water in Communities 58 Abstract 58 6.1 Introduction 58 6.2 Overview of Grameen Veolia Water 59 6.3 Safe Drinking-Water Awareness 60 6.4 Impacts of Safe Drinking-Water on the People 61 6.5 Further Considerations 63 References 63 7 Local Currency and Regional Revitalization 64 Abstract 64 7.1 Introduction 65 7.2 Why Local Currency? Deficiency of MONEY 66 7.3 Definition and Nature of Local Currency 68 7.4 An Example: Yamaguchi Yapee 70 7.4.1 Yamaguchi Local Currency ‘Yapee’ 70 7.4.2 Results and Analysis of Yapee Experiment 72 7.5 Factors for Success and Failure 75 7.6 Further Considerations 76 References 77 8 Role of Solidarity in Organic Agriculture 78 Abstract 78 8.1 Introduction 79 8.2 Teikei: Organic Agriculture in Japan 79 8.3 Environment-Friendly Agriculture in Korea 82 8.4 Sufficiency Economy in Thailand 83 8.5 Further Considerations 84 References 85 9 Certified Coffee and Solidarity 86 Abstract 86 9.1 Introduction 86 9.2 Coffee, Environment, and Poverty Alleviation 88 9.3 Coffee and Poverty in Vietnam 91 9.4 Solidarity Through Coffee 96 9.5 Further Considerations 98 References 98 10 Development of Social Business in Korea 100 Abstract 100 10.1 Introduction 100 10.2 Social Enterprise Promotion Act 101 10.3 Local Government Efforts: Chungcheongbuk-do Case 106 10.4 A Case Study: Heuksalim 108 10.5 Further Considerations 111 References 111 Index 112 This book presents theoretical examinations of why and how connecting people yields different results from those of the market mechanism alone. With an ever-greater disparity between the worldĺls rich and poor, actions have been taken to remove the imperfections and remedy malfunctions of the market mechanism. An underlying theme of these activities is to connect people and make them directly visible to one another; thus the integrating concept of the ĺlsolidarity economyĺl emerges. This volume analyzes diverse examples and practices of solidarity economy. Adam Smith emphasized the importance of ĺlsympathyĺl among people and the role of the ĺlimpartial spectatorĺl in order to control otherwise reckless markets. These major concepts form the basis of a solidarity economy. The examples and practices in this book are based on this framework. The first is the idea of social business, promoted by Prof. M. Yunus of the Grameen Bank. Although the group of five members in the Grameen Bank organization is considered a system of mutual surveillance by some economists, it is not a system based on distrust but a mechanism for mutual help and encouragement. Also examined in this book is organic agriculture, which adheres to the necessity of face-to-face relationships. It pursues environmental concerns and food safety by bringing together consumers and producers in local areas and by sharing knowledge. When consumers and producers are widely separated, a system of certification assures consumers that no chemical pesticides and fertilizers are used. Connecting consumers and producers through certification systems can be seen as part of fair trade mechanisms. These mechanisms are applied in certified coffee programs, for instance, to reduce poverty, to protect the environment, and to safeguard human rights. This book proposes that all these seemingly different types of activities can be understood as part of the solidarity economy. With this unifying theme, the book will be useful for both theoretical investigations and practical applications Chapter 1 Theory of Solidarity Economy and Social Business (Ikemoto, Y) Chapter 2 Microcredit, Inclusive Finance and Solidarity (Matsui, N. & Tsuboi, H) Chapter 3 Grameen Model Microcredit in Spain (Tsuboi, H. & Nuzrul Chowdhury) Chapter 4 Renewable Energy for Off-Grid Villages: Grameen Shakti (Tsuboi, H) Chapter 5 Yogurt for the Poor: Grameen Danone Foods (Tsuboi, H) Chapter 6 Distributing Clean Water in Communities: Grameen Veolia Water (Tsuboi, H) Chapter 7 Local Currency and Regional Revitalization (Matsui, N) Chapter 8 System of Solidarity in Organic Agriculture (Kim, K. & Ikemoto, Y) Chapter 9 Certified Coffee and Solidarity Economy (Ikemoto, Y) Chapter 10 Social Business Promotion Law in Korea (Kim, K). . Front Matter....Pages i-vii Solidarity and Social Business: Theoretical Background....Pages 1-11 Microcredit, Inclusive Finance and Solidarity....Pages 13-25 Grameen-Model Microcredit in a Developed Country: Spain....Pages 27-34 Renewable Energy Resources for Villages Off the Grid....Pages 35-44 Yogurt for the Poor: Progressive Nutrition....Pages 45-51 Distributing Clean Water in Communities....Pages 53-58 Local Currency and Regional Revitalization....Pages 59-72 Role of Solidarity in Organic Agriculture....Pages 73-80 Certified Coffee and Solidarity....Pages 81-94 Development of Social Business in Korea....Pages 95-106 Back Matter....Pages 107-108