Masters in International Development |
Public Organization and Management |
The Solidarity Economics in Brazil |
Felipe Santos 菲力佩 |
January 10th, 2010 |
This work focus on understand the solidarity economics values and motivation, comprehend the government policies and its output in Brazil. Further analyze the actual condition of this new approach by looking the characteristic of these businesses and the actual return of this new economic perspective to the Brazilian Society. |
Introduction
The Brazilian society has achieved levels of industrializations, developed high technological parks, industrial clusters, expands communications, access to education, health system, information. Besides there are many holes in this development, Brazil has one of the most unequal income distribution of the world, 1% of the population of the country holds over 80% of the wealthy of the country, where among 20% of the population still lives bellow poverty line.
These individuals stroked by social struggles, social disparities and unemployment, came up with the Solidarity Economics idea as an alternative to the traditional economics institutions that are absolute in every society throughout the world, it is a new economy approach focus on different social and economics relation which are re-arranged day by day by those who once were the substrate of society, facing unemployment, lack of opportunity, illiteracy, those who the market neglect as labor force, raising as an alternative to the classical economic society.
The Solidarity Economics is a new idea focus on different perspective of economic and social relations. These relations are re-arranged day by day by those who accept this perspective. On a basis of self-management, cooperation in all life manners, the solidarity behavior fundamentals on education, opposing individualism and individual competition in such way that the relation between subjects does not count the individual income, respect generations, race-ethnic, religion on a horizontal relation basis.
This initiative has a perspective focus on life quality, education and politics. It begins in individual appreciation where the main focus is to oppose technologic capital in pro of labor work, where it avoids the fragmentation of individuals, valuating the self-autonomy, an independent subject where it exercises your civil rights, politics, philosophy, a human which is a protagonist of the history opposing the systematic capitalist subject.
This approach is extended to a sustainable basis where the human being understands it's limitation between nature, society and economic exploration. The education procedures protect life in any dimension, incorporating sensibility and affection as a basic element on the human formation, recognizing happiness, individual liberty and collectiveness as every person's right.
In this sense giving this neglected society the chance to rediscover creation, rescue popular culture and the incorporations of symbolic goods, the music, dance, allegory and drama, plastic arts and other manifestations of culture considering the education pattern as roots elements.
This educational process creates the investigative collective players, capable to evolve all of them into the formation process favorable for political, economic and social transformations, thus educational practices as a political act in favor of human emancipation to fill a blank of contradictions and disputes in the society.
Where on the basis of dialogue transform the enterprise room to a place of a new work culture to push upon new social economic relations, validating the labor knowledge, opposing the traditional area where raw materials were transform into goods.
Direction
The directions bring the meaning to the educator incorporating dialogue between individuals and culture, respecting language and knowledge which architects the bases of innovation on the collective production scheme.
Appraise the social structures, production methods and societal achievements by considering political actors (race, ethnic groups and women). Include in the history an alternative organization that brings new perspective of production and development, such as cooperatives, socialism and self-management.
Use fare division of labor gender, as a way to understand work, productivity and reproduction as fundamentals elements to oppose inequalities and discrimination of women potentializing the rights and inter-relation of woman as an active worker.
Pushover its own achievements, labor rights, human rights, and the construction of new bills, allowing the criticism over the capitalism, transforming from history of solidarity economics to solidarity economics into history.
- the S.E. Enterprise and inter-relation
Fundamental on fairness, self-management, cooperative and the principles of solidarity economics the formation of enterprises points to local sustainable development, rescuing the history of villages and communities, underlining cultural, social and political evolution pursuing human rights, economical, political and cultural development.
From the top to the bottom, the Solidarity Economic Enterprise has strong roots with legal framework. On the top, legal forms based on Federal Constitution, civil codes, Cooperative Laws, Pension Laws, Tax legislation, Firm Legislation, Sanitary and Environmental Legislation.
On the bottom, based on contractual relation between Solidarity Economic Enterprises, Market and other enterprises not related with the Solidarity Economic Enterprise.
The legislation within the company's boundaries, such as Code of Ethics, Statute, Bylaw and Rules of Conduct always engaged on social protection and Intellectual Property legislation respecting the differences of race, gender and ethnic.
The shapes of S.E. Enterprise: Cooperative, association, self-managed enterprise, network and production chain, cooperative complex, market center and any other collaborative formation of Labor Company.
The relationship of the enterprises: Sector and global Networks, forums, solidarism collectives, dialogue with other S.E. Enterprise, NGOs and Public Power Institutions.
The Financial side of S.E. Enterprises: There are Credit cooperatives, micro-credit, rotation funds, Community Banks, Solidarity Sponsorship.
The Trade of S.E. Enterprises: Rooted on ethic, solidarity and just trade, fair market, trade clubs and conscious consumption.
Support of S.E. Enterprises: Foundations, representative associations, civil society organization, entrepreneurship entities, social movements and Support Entities.
The self-management idea is sustained on emancipation of workers, sustainability and economic feasibility, assuming that every decision taken by the company must be decided collectively, organized and discussed its principals, using clear process and tools for decision making based on assemblies, theme commission meetings, work groups.
The workers inter-relation such as power relation, gain sharing, authoritarianism, distrust, are avoided by strong assessment, bookkeeping and administrative control. Another manner to avoid such strains is giving a good knowledge of the supply chain that the group is involved.
To better acknowledge the formation process is good to bring discussions such as culture and art, communication and information, open-software and digital inclusion, labor health and safety, land reform and family agriculture.
Another form to underline constraints in work labor is the creation of the company's brochure, logo, marketing campaign, uniform and provide access to forums, discussions allowing the members to exchange information and knowledge.
- Public Policies
The state has the obligation to attend the basic demands of the enterprises which are access of basic education and other levels of education, giving the conditions to develop and spread the Solidarity Economics ideas, by social and professional qualification, illiteracy eradication, in special young and adult education.
The national policy is divided in four main institutions, The Formation Group Network, National Board Committee of Solidarity Economic, National Secretariat of Solidarity Economics and Brazilian Forum of Solidarity Economic.
The Formation group Network are members of civil society, universities, NGO's and other institutions that brings information for communities and labor class interested in the Solidarity Economics, these groups play an important role in disseminating the Solidarity Economics ideas, in majority, they are undergraduate students, leaders of communities, and government experts who spread the idea elsewhere.
The National Board Committee of Solidarity Economic was created in July of 2003, as duty to consult and coordinate the relation between government sectors and civil society that work in behalf of Solidarity Economics. Its main functions are: propose public policies throughout the Ministers of the Federal Government and others organizations of the Federal Government and monitor the execution of these policies in terms of national policies for solidarity economics. The main objective of the Board is to guarantee the effective representation of the society as a state, allowing intercommunication to seek a permanence refinement of public policies for the solidarity economics. The Board will be composed by 56 members, divided in three sectors: government, Solidarity Economics Enterprises and Non Government Organizations which advice Solidarity economics enterprises.
The National Secretariat of Solidarity Economics was created over the Ministry of Work and Employment in may 28th of 2003, in line with the Ministry of Work and Employment mission, which has the objective to facilitate and coordinate activities that support the Solidarity Economy in all national territory, focusing on job and income creation, to social inclusion and the promotion of just and solidarity development.
The Solidarity Economy Brazilian Forum was created in July of 2003 on the III Brazilian Assembly of Solidarity Economics, the Solidarity Economics Brazilian Forum is today a national institution that articulate, debates, create strategies and mobilize the movements of Solidarity Economy in Brazil. It also represents the movement to the public power in all instances such as Federal, State and Municipal through its national coordination on state and municipality level forums and discussions in behalf of national and international networks and entities.
- Solidarity Economic Development Program
The Solidarity Economic Development Program is known for the introduction of specific public policies in a national coverage. The federal government assumed the challenges in implement policies, the goals of this policy implementation are to extend policies of social inclusion and protection of the workers. It is observed as an alternative to the capitalism, where the workers would collective assume the management of their economic enterprise.
This program was created six months after the implementation of the Secretariat of Solidarity Economics, it search to express the demands of the solidarity economics by defining priorities through the Formation Group Network, National Board Committee of Solidarity Economic and Brazilian Forum of Solidarity Economic.
Thus, by intensive discussion with the civil society, it is also characterized on believing on mainstreaming and intersectionality searching for articulation with other public policies that focus on labor creation and income, eradication of poverty and social inclusion of the federal government and others federal entities.
In three years of existence, the program advanced in the constitution of national public policies for the solidarity enterprises and now the challenges are to give credit access, open credit lines that meet the needs of enterprises.
In this sense was defined many policies lines with highlights for the organization and trade of services and products of solidarity economics; the formation and technical assistance for the enterprises and their cooperation network; the promotion of solidarity finance, in the form of community banks, and solidarity revolving funds; and the elaboration of a differenced legal framework for the solidarity economics allowing the right of the associate labor.
Moreover the maintenance of public policies promoting the formation of public managers trainers; the construction of local development strategies, having a network of agents spread around the country with the ideology the solidarity economics; and lastly the mapping of the solidarity economics which will broaden and update the information system basis of Solidarity Economics enterprises.
- Objectives
The main objective of this policy is to promote and strengthen the support of solidarity economics, focusing on labor creation and income, social inclusion and the promotion of solidarism and just development. The objectives must be aligned with the federal government and aligned with the Ministry of labor and Employment that is to expand the solidarity economic as an alternative for the development of the nation.
The specific objectives are:
- Diffuse and strengthen the self-management enterprises;
- Elaborate and incentive measures to increment the solidarism finance such as community banks and revolving funds;
- Re-analyze and bring new ideas to implement the legal framework of solidarity economics;
- Coordinate production chains, expand production, distribution and consumption of solidarity economics products, supporting the ethic and responsible consume contributing for the construction of a national system of fair and solidarism trade;
- Stimulate research and development of knowledge centered in technologies for Solidarity Economics articulated with education and research policies;
- Upgrade and update the information system base of Solidarity Economics;
- Strengthen the participation of civil society and other government entities for the construction of public policies for the solidarity economics such as the National Board of Solidarity Economics.
- Local development promotion of Solidarity Economics throughout the Trainers of Solidarity Development
Promotion of local development by starting new enterprises of solidarity economics, and also strengthen those that already exist. Contract and educate agents of solidarity economics which are able to work in the communities with the objective of understand and know the potentials of the local economy.
These agents would promote new enterprises and consult the existing ones, support the construction and fortify new collective ideas and attitudes, such as forums, networks and whereabouts which argue and define the community's necessities always surrounded by the principals of solidarity economics.
- Formation of Trainers and Educators
The activities of formation and education of trainers are developed by the department of Qualification, of the Secretariat of Public Policies and Employment, located at the Ministry of Work and Employment which is responsible for the National Plan of Qualification (PNQ).
Together with the ministry of Education and Culture PNQ develop education of workers together with the program of adult and young educations, evolving the process of alphabetization, rise of education background and continued education.
Another initiative is the formation of governmental managers of public policies of Solidarity economics which their work reaches federal, state and municipal levels in partnership with the Public Management Network of Solidarity Economics.
By the year of 2008 the SENAES/MTE setup the Solidarity Economics Formation Center which will teach and shape managers, workers, methodology production, systematization and publication of text books.
The objective of this policy is to guarantee a structured and systematized process of configuration of trainers, educators, public managers to work with solidarity economics, for the production, multiplication and promotion of knowledge, methodologies innovation and appropriated technologies to develop the Solidarity Economics Enterprises.
- Incentives for Solidarity Financial institutions and promotion
The access to loans is highly demanded for solidarity economics, since 2004 the Secretariat of Solidarity Economics have being supporting projects of Solidarity Finance and stimulating the debate with public banks and other entities to elaborate new lines of credit directed to specified segments such as restored companies and solidarity funds in general, as an alternative of credit for solidarity economics.
By the year of 2005 with the UN declaration that 2005 was the year of Micro-credit, was formed an inter-ministerial group work coordinated by the national secretariat of solidarity economics to craft a national policy for micro-credit. As a result was created the National Program of Oriented Productive Microcredit, nowadays partner of the Program Solidarity Economic Development.
In the context of the Solidarity Economic Development the action focus mainly in promoting two activities, the Community Bank and the revolving funds.
The objective of these actions are support the creation and strengthen institution such as developing community banks and solidarity revolving funds, with liability to promote loans for productive initiatives which attends the criteria of Solidarity Economics.
- Trade of Products and Services of Solidarity Economy Enterprises
The trade of products and services of solidarity economics is a central point of the enterprises, the creation of a differentiated trade relationship requires the development of distribution channels for SE products and Services rooted on justice principals, cooperation, transparency and solidarity.
The objectives are the support of projects that enables and dynamic the trade of products and services of this initiative. The main actions are:
- Construction of Brazilian System of Fair and Solidarism trade;
- Promotion of Solidarity Economics Market-place;
- Promotion of territorial services bases which are related with solidarity enterprises;
- Support projects which are interested in the implementation of storage and distribution;
- Promote these enterprises products in stores chains, supermarkets chains, Fast Food, and others.
- Stimulus for elaboration of public policies
The institutionalization of public policies is one of the strategies of solidarity economics to consolidate this theme on the agenda of the three powers, and guarantee its permanence as a state policy and not just a term policy.
The main objective is to implement these specific public policies for solidarity economics in all level of government, with the approval of municipal and state law and the creation of agencies inside the local and state government, such as secretariats, and departments, moreover implement areas and spaces for local discussion enabling the dialogue between public power and civil society.
The objective is to strengthen the federal and others instances of power, where there are solidarity economics activities, in such a way that favorable the creation, dissemination and rooting process of this approach.
The main actions are:
- Support the establishment and development of local public policies and regional solidarity economy with decentralized execution, through agreements with the public or private entities, and promote the joint of agencies and entities to cooperate with policy implementation;
- Systematization and evaluation of project already initiated through the creation of a public center for solidarity economic development policies;
- Maintenance of the activities of the National Economic Board of Solidarity Economic and its bodies (the Standing Committees, Thematic Committees, etc);
- Execution of Fairs and National Solidarity Economic Conferences.
- Incentives for Incubation of SEE
Through the university the incubators are small solidarity entities that support and consult new enterprises or strengthen existent ones, offering them technical assistance and know-how during the period of foundation. The incubators has been mostly active in the foundation of new enterprises, networks and other modalities of articulation, on the education of new professionals in the field of solidarity economics and also contributed to the development of knowledge-base. methodologies, public policies and social movements. These contributions are combined with knowledge production, formation of technicians and the construction of projects and public policies.
Its main objective is to consolidate and broaden the incubation of popular cooperatives, foment the creation of cooperatives, produce know-how mainly on the methodology for the formation of cooperatives.
- Legal Framework
The legislation and the legal frame-work plays one of the most important roles for the Solidarity Economics, these legal stream will give the benefits that those who before were excluded out of the society, it will not only protect their business activities but also guarantee their rights as a citizen.
The legal framework mainly guides to the construction of norms and elaboration of law bills that regulate the state power, minimize opportunism between contractual relations, and reduce transaction costs over the solidarity economics field. Idealize normative proposals capable of legal recognition of the multiples association nature which are involved with the solidarity economics. Create proposals which meet the demand of the labor rights, particular for those who are associates.
- The Solidarity Economics Enterprises' Profile
Bellow follows the numbers of Solidarity Economics and Cooperatives enterprises in 2005, it has increased in such a big range that the numbers of enterprises registered under this economic perspective have reached 15,000 in 2005, where 56% of them are located in the least developed region of the country, Northeast.
- Average Month Income of EES Goods
Products Distributed in Activity | Monthly Income R$* | % Monthly Value | |
Agrobusiness Activity, Extractives e Fishing | 227.185.791,54 | 46,2% | |
Food and Beverages | 98.227.398,19 | 20,0% | |
Financial and Credit Services | 82.055.700,75 | 16,7% | |
Industrial Production (all kinds) | 29.404.555,00 | 6,0% | |
Service (all kinds) | 20.319.691,22 | 4,1% | |
Artifacts Craft | 13.624.943,08 | 2,8% | |
Textiles and Clothing Production | 9.307.757,59 | 1,9% | |
Collection Services and Recycling Materials | 4.430.797,12 | 0,9% | |
Mineral Production | 1.977.436,33 | 0,4% | |
Herbal Medicines, Cleaning and Hygiene | 935.211,00 | 0,2% | |
Production and Other Services | 3.981.755,18 | 0,8% | |
TOTAL | 491.451.037,00 | 100,0% | |
* out of all EES, 31% Did not declare the total production income value Source: Atlas da Economia Solidária, 2005 – SENAES/MTE | |||
This is the last report produced by the government mapping the solidarity economy, it was called the Map of Solidarity Economics, to better analyze the available information in the solidarity economy it is likely to choose one state sample. To demonstrate the behavior of this economy we choose the state of Alagoas, which is located in the northeast region of Brazil.
Alagoas has the highest rate of illiteracy among the others state of Brazil 23,37%, where the population rate with the age of 15 or higher reaches 25.74% of illiterate, the average period of studies is 5.1 years, where the average in Brazil is 7.4. The Gini index is 0.611 compared to Santa Catarina which is the best 0.555. Alagoas is also the leader in birth death rate, with 48,2 deaths per 1000 born.
The HDI of Alagoas is also the worst of the country, 0.722 where the most wealth in the country is the federal district 0.874. The GDP per capita of Alagoas is US$1983, which is ranked in 25th of 27 states of Brazil and its GDP is ranked 20th of 27 states, with US$5,771 million, compared to São Paulo the most wealth US$531,049 million.
Based on the National System of Solidarity Economics in Alagoas the numbers of enterprises which are part of solidarity economics are 284, where 48.6% are still not registered with the government, they are informal enterprises, 44.7% are associations and 4.9% are cooperatives. Besides the informality, 51% of the Solidarity Economics enterprises are registered with the government.
According with the questioner the main motivation for the formation of these enterprises in this state is the lack of opportunity and formal job (27.3%), second reason is a source to fulfill income for the associates with (13.91%) and third issue is to look for better income as an associative company (13.57%).
Most of the activities of the enterprises are taken in the rural area with 51%, where the urban zones enterprises counts only for 19.14% of the total. The enterprises which participates in both zones, counts for 29.43%. From the total enterprises 8.4% is in implementation phase while 91.6% is already operating.
The number of companies who the participants are exclusively men or women counts for 11.66% and 16.96% respectively. Enterprises with both genders reach 71.38%. In average the number of women in the association counts for 31.27% and men 68.73%.
The majority of the enterprises has between 21 and 50 members, counts for 33.57%, while enterprises above 50 members has 31.1% followed by 20.5% by those between 11 to 20 associates, and until 10 affiliates only 14.84%.
The oscillation of associates during the period of one year in the enterprises shows that in majority the workflow isn't too significant, where 53.71% of the companies keep the same number of associate, while 16.96% there was reduction of members and 29.32% had an increase in the number of associates, showing that in general there are new workers entering to the enterprises rather than changing to other association.
Within the enterprises the activities that are done collectively mainly are the share of infra-structure (building, storage, office, stores, etc), production, share of infra-structure, use of equipment and trade of goods are basic taken together as can be observed bellow in the table:
The activities shared by associates in the enterprise DESCRIPTION |
TOTAL |
infra-structure (building, storage, office, stores, etc) | 142 |
Production | 131 |
Use of equipment (machinery, tools, etc) | 121 |
Trade (sell) | 111 |
Acquisition (purchase or collect) of raw material and inputs | 69 |
Offer of service or work | 51 |
Savings and Credit | 48 |
Prospection of clients or services for associates | 30 |
Another | 12 |
Trade of products and services | 12 |
In terms of equipments the largest majority has their own equipment 80.7%, the others 19.3% are distributed as rented, donated or borrowed. The destiny of the goods that are produced by these enterprises are mainly sold 66.42%, while 33.57% are trade for other goods or used as their own consume, and the residual are only trade for other goods either used as self consume.
Most of the goods are directed sold to the consumer 59%, for retail/wholesale 21.78%, the rest are sold to government, other solidarity enterprises, or others which are not mentioned in the questioner.
The economic activities that are most frequent in the enterprises can be observed in the table below:
- Type of Enterprise Activity
POSITION | DESCRIPTION | TOTAL |
1st | CULTURE OF PRODUCTS OF TEMPORARY CROPS | 39 |
2nd | Mixed Farm: farming and ranching | 28 |
3rd | Activities services related to agriculture | 25 |
4th | Manufacture of articles miscellaneous, wood, straw, except furniture | 22 |
5th | CULTURE FOR CEREAL GRAINS | 18 |
6th | Growing citrus | 16 |
7th | Manufacture of miscellaneous products | 16 |
8th | Road passenger transport, regular, urban | 13 |
9th | MANUFACTURE OF TEXTILE FABRICS - EXCEPT CLOTHING | 12 |
10th | CLOTHING - EXCEPT UNDERWEAR, BLOUSES, SHIRTS | 10 |
11th | Manufacture of other food products | 10 |
12th | FISHING AND RELATED SERVICES | 10 |
13th | CULTIVATION OF VEGETABLES, VEGETABLES AND OTHER PRODUCTS OF HORTICULTURE | 9 |
14th | Road passenger transport, regular, non-urban | 9 |
15th | Recycling non-ferrous metal | 7 |
16th | Manufacture of bakery products, confectionery and pastry | 7 |
17th | Raising of other animals | 6 |
18th | Manufacture of articles MISCELLANEOUS MATERIAL PLASTIC | 5 |
19th | Manufacture of articles of tapestry | 5 |
20th | Manufacture of other textile articles, including weaving | 4 |
As can be observed in the table the agriculture activity is most present in the enterprises of the state of Alagoas, most of these enterprises, has their owned office 40%, where 35.3% is borrowed or donated, 14.6% are rented and only 9.3% doesn't have its own headquarters. Another characteristic of the goods market are that goods mainly go to the local community 26.1% and to the municipality 29%, the rest is directed to the micro-region 18.61% , state 17.42%, national 5.9%, and exports counts only for 1.19%.
The difficulty found while commercializing goods in these enterprises are listed bellow in the table:
- Main difficulties on the trade of goods and/or services
Description of difficulties | 1st ORDER | 2nd ORDER | 3rd ORDER | TOTAL | ||
The project tried but failed to find enough customers | 25 | 5 | 6 | 36 | ||
Nobody wants to take care of the development of sales | 3 | 4 | 1 | 8 | ||
No one knows how the enterprise is made one sale (argumentation, negotiation, etc.). | 4 | 6 | 1 | 11 | ||
The project has suffered many defaults and does not know how to avoid | 8 | 6 | 4 | 18 | ||
Prices charged by the project are very high | 7 | 3 | 3 | 13 | ||
Customers are demanding a deadline for payment | 9 | 10 | 5 | 24 | ||
Buyers only buy in bulk | 3 | 4 | 1 | 8 | ||
Difficulty in maintaining the regularity of supply | 9 | 12 | 2 | 23 | ||
Lack of capital for credit sales | 22 | 14 | 14 | 50 | ||
Lack of legal registration for marketing (send invoice, etc.) | 5 | 14 | 4 | 23 | ||
Market players (competitors, middlemen, monopolies) | 3 | 6 | 4 | 13 | ||
Transport / roads | 33 | 11 | 5 | 49 | ||
Inadequate price of products (low-valued) | 16 | 7 | 3 | 26 | ||
Structure for commercialization (Place, space, equipment, etc.) | 20 | 0 | 3 | 23 | ||
Another difficulty | 23 | 9 | 6 | 38 | ||
The majority of the problems faced by the associates are transport and road access, finding customers, lack of capital for credit sales, the prices of the market are too low, and the enterprise infra-structure doesn't meet the needs of the market.
The preference of the enterprises for advertising goes first by telling friends, or talking, secondly through affairs, events, forums, and thirdly the conventional way such as posters, catalogs, brochures and pamphlets.
It was found that most of the enterprises capital are from their associates, while the secondly source are donation, and thirdly loans and credit lines. The investment made by these enterprises roughly goes to infra-structure, secondly machinery and equipments, and thirdly expansion of stokes of raw materials.
In terms of investment the total enterprises, 66.78% of them did not have access to loans, and credit lines, while 19.43% had access, the other loans and credit lines doesn't apply for their activities. For those who had access to credit, 47.27% has direct it to investment, 27.3% has direct it for funding, or working capital, and 25.4% has distributed for both areas, 83% of the loans comes from Public Banks, while the others 17% comes from private bank or cooperative bank. WAGES ENTERPRISES % Total average Average until 1/2 minimum wage 92 32,39% R$ 9.638,80 R$ 104,77 1/2 a 1 minimum wage 89 31,34% R$ 25.214,10 R$ 283,30 1 a 2 minimum wage 20 7,04% R$ 10.844,13 R$ 542,21 2 a 5 minimum wage s 8 2,82% R$ 9.925,88 R$ 1.240,74 Above 5 minimum wage 2 0,70% R$ 4.593,55 R$ 2.296,78 TOTAL 211 74,30% R$ 60.216,46 R$ 212,03
Minimum wage is R$480.00
As can be observed the majority of enterprises still does not reach a monthly payment capable of providing enough wealth for its associates in the case of Alagoas, where 63.8% the benefits are very low, besides, the other 36.2% are having a very reliable monthly income above R$500.00, with some of them reaching more than R$2,000.00 per month.
In terms of the debt management, most of the enterprises are in date with their bills 83.4%, only 5.4% are with the bills out of date, while 8% of the enterprise already discharge from their debt with the financial institutions.
The main complains in achieving a loan usually goes because of the lack of endorsement and guarantee, the documents required by the banks are hard to obtain, and the bureaucracy is too high.
- Conclusion
The Brazilian society has found an interesting way to achieve social inclusion throughout social and private initiative, where the beneficiates creates capitalism in a way that avoid confrontation with its cultural values and ethical principal.
The Solidarity Economics came as an alternative to the conventional savage capitalism which has a traditional characteristic of income concentration, where the ones who are rich day by day become richer and those who are poor, are kept excluded from its benefits. More important it came not confronting the actual production methods, but by find an alternative patch to reach the same objective, welfare.
As is can be observed, even most of the enterprises aren't being able to distribute enough wealth to its associates, but it complements their income helping with their daily life, contributing somehow to have a more comfortable life.
Looking in a business scope, the enterprises are doing well, as long as they are paying their bills, and running without being in deficit, it is a positive signal that the policies implemented by the government are somehow bringing outcome.
Once there community banks and cooperative of credit are better distributed, when enterprises leave the informality (becoming legal enterprises) with the legal framework completed, barriers such as distribution channels, brokers, credit, will allow these enterprises to reach big consumer markets.
Moreover the concurrence ambient is very likely for solidarity enterprises, companies around the world have observed that when you add social and environmental value in to their brand, their competitiveness increases in many ways, this trend combined with the values of solidarity economics can bring a greater output in a near future.
Even though, concerns in term of infra-structure such as road and transport must be taken more serious by local government and state government, this kind of problem extremely increase the cost of the products, reducing the competitiveness of these enterprises.
In overall is obvious that such policies won't give results in the short time, but with perseverance and hope it will slowly suppress its obstacles and succeed in their objectives. Market barrier such as distribution channels, technology, credit lines, and qualification throughout the time can be surpassed, and time is the key that these policies needs to meet the needs of these enterprises.
- References
Institute of Social Environmental Policies – Drafts of the 1st Congress of Environment Education of Goiás – Federal University of Goiás. Goiânia - Go, 2008. http://www.iesa.ufg.br/congea/cong/nupeat_TRAB/id000000000000110r0.pdf
National Secretary of Solidarity Economics – MTE/SENAES – Report "Uma outra prática Educativa Acontece" – Brasilia/DF 2007.
Ministry of Labor and employment – Secretariat of Solidarity Economics, Atlas da Economia Solidária no Brasil, 2005. www.mte.go.br/ecosolidaria
Brazilian Forum of Solidarity Economics – http://www.fbes.org.br
Ministry of Labor and Employment - National System of Solidarity Economics, Regional Information, Northeast Region, State of Alagoas, http://www.mte.gov.br/ecosolidaria/sies.asp
Ministry of Labor and Employment - Solidarity Economic Development Program
