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SPECIAL REPORTS
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Wednesday
09 February 2005
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ARGENTINA:
Building a Solidarity Economy
Viviana
Alonso
BUENOS AIRES,(IPS) - A
solidarity economy is being
built by thousands of workers in
Argentina, in rural
cooperatives, worker-run
factories and small businesses
linked by networks.
Now trade unions, universities
and social, political and
student organisations are
calling on the various
initiatives in the solidarity or
social economy to come together
to debate projects that would
build on past experiences, as an
alternative to the prevailing
economic model that they say
marginalises large sectors of
the population.
In Argentina, there are many
examples of organisations
involved in economic activities
whose chief aim is not
maximising profits, and which
have horizontal structures and
are run in a democratic,
participatory manner.
In fact, such examples ”have
existed in the country for over
100 years,” states a report by
the Central de Trabajadores
Argentinos (CTA) central trade
union.
Added to the ”traditional
cooperatives, mutual societies
and other forms of association
are microenterprises that
operate on the basis of
solidarity, joint purchases and
many other alternatives that
form part of the popular
economy,” the report adds.
After Argentina's late 2001
financial, economic and
political collapse that
triggered the worst depression
in Argentine history, poverty
and unemployment soared and
solidarity economy initiatives
mushroomed.
These have included regional
cooperatives of small farmers,
bankrupt factories that were
abandoned or closed by their
owners and reopened by their
employees, self-managed
companies, communities that have
come together to find solutions
to meet basic needs like health
care, housing or food, and
barter networks whose members
trade goods and services.
”The social economy changes the
rules of the game, which only
seek to maximise the benefits
for a few based on the
accumulation of capital, while
it attempts to improve the
living conditions of workers and
their families based on getting
needs met through cooperation,
solidarity and self-management,”
said Soraya Giraldez with the
CTA's Studies and Training
Institute (IEF).
”These experiences mark the
possibility of advancing towards
new forms of distribution of
wealth,” she told IPS.
Social economy initiatives find
innovative ways of meeting
people's needs, give
participants experience in
organising, and in some cases
question key aspects of the
current economic model, by
putting the means of production
in the hands of workers, for
example.
The CTA and other institutions
are attempting to create
mechanisms and tools for
providing technical assistance,
training and support for
solidarity economy projects,
while providing advice for
setting up trade and cooperative
networks.
Working alongside the CTA in
this effort are the universities
of Buenos Aires, La Plata and
General Sarmiento, the Instituto
Movilizador de Fondos
Cooperativos, the Federación
Agraria Argentina, the Centro
Nueva Tierra, the local
committee of the World Social
Forum and a large number of
non-governmental organisations
(NGOs).
These organisations are also
helping the left-leaning
government of Néstor Kirchner to
draw up work-fare schemes for
the unemployed.
In addition, they are backing
workers in recuperated factories
in their struggle to obtain
support from the public and
private sectors.
But the overall aim of these
organisations is to create links
between the myriad initiatives,
to help them avoid isolation and
to bring them together in a
unified political and social
project.
So far, more than 20 productive
and service endeavours in
Greater Buenos Aires have
provided information on their
experiences, in order to set up
a databank to create links and
facilitate communication.
For the CTA, it is essential to
forge a space in the IEF for
offering training and technical
advice to the various projects,
and to help facilitate
networking and exchange among
themselves.
One key challenge is to identify
obstacles to the social economy,
which usually involve legal
aspects or vacuums, since these
projects create new forms of
association. Other problems
arise from tax and credit
issues.
Matters on which the CTA and
other organisations want to
focus their efforts are access
to soft credit, the recovery of
companies that have gone under
and public spaces that have
fallen into disuse, and the
creation of sales networks
without middlemen.
The CTA also believes the
state's commitment must go
beyond welfare, and should be
based on spending aimed at
bolstering certain industries
and reactivating regional
economies.
”The social economy is not an
economy of poverty,” but an
initiative that requires
participation by the state,
”which must adopt measures that
tend to reduce the accumulation
of capital in the dominant
sectors of society,” argued
Giraldez.
She pointed out that ”until José
Martínez de Hoz arrived in the
Economy Ministry (with the 1976
coup d'etat that ushered in
seven years of military
dictatorship), there were more
than 200 solidarity banks in
Argentina, and there are
practically none left today.”
According to the CTA, ”the
effects of the model of
exclusion” that has been applied
in Argentina are not only
reflected in appalling
socioeconomic indicators, but
there has also been a disturbing
disintegration of the social
fabric.
Sixty percent of wage-earners
cannot afford the minimum basket
of goods and services for a
family of four, and 250,000 have
fallen into extreme poverty,
which means they cannot even
meet their families' food needs.
According to the National
Institute of Statistics and
Census, 44 percent of
Argentina's 37 million people
are poor, while 17 percent live
in extreme poverty.
The richest 20 percent of the
population receives 53.1 percent
of all income, the middle 40
percent takes 34.7 percent,
while the remaining 40 percent
only takes in 12.2 percent.
According to Giraldez, ”a
political actor must emerge that
is capable of generating
proposals and has the power to
press for and achieve its
objectives. In other words, a
collective that can bring about
transformations.”
Social economy projects are
emerging in many countries of
Latin America, especially
Venezuela and Brazil -- both of
which are governed by leftist
administrations -- and Argentina
should create links with these
initiatives, she added.
With respect to access to small
loans from abroad, Giraldez said
that ”if funds arrive, they will
be useful to the extent that the
conditions are created for the
projects to become
self-sustaining.”
She also pointed out that not
all social economy initiatives
can cater to foreign markets,
due to the difficulty of
competing with large companies.
For that reason, said Giraldez,
one of the keys to success is
strengthening the domestic
market, still depressed by high
under- and unemployment, which
affect 5.5 million people, or
nearly one-third of the
economically active population
of 16.8 million. |
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