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Social economy, the sustainable way ?

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AGRICULTURE-ENVIRONNEMENT-ALIMENTATION-MAG

In Gironde, consumers are financing the installations of a "bio" market gardner for a local direct sale.

Today, the social economy seems to gain interests. The main principle of this concept is to create an economical model showing more solidarity. When I read these words, I am wondering if we are not busy to re-invent what should be the ideal model?

If you think about the economy, it has to be to the service of the people, and not the opposite. By mentionning this, it implies that the economy has a social dimension…or should have it.  But today, the concerns are more to maximize the profit of the companies in order to create value for the shareholders. But for how many time? In these particular difficult times, people lost their jobs. Sometimes, it was the only solution in order to maintain the continuity of economical activity. But we can see also in many countries, increasing difference between higher and lower salaries. When some people could not spend the money they are earning during all their live, other people try to survive.

Do not forget that some people have high responsibilities and need to be paid for. But until which salary level does it still make cense? When I remember by the past, some salaries and bonuses earned by some directors of companies which did not show exceptional performances or falling in bankruptcy, I see that more as an incompetence premium. Everybody would be ready to miss a target of to fail a project and receive a salary or bonus which allows you to have a comfortable live. Where is the risk?

By reducing the lower salaries, how can we ensure an economical growing, if people can not pay for goods or services? By contracting debts? That is what  happened these last years, and created the financial crisis.

We can not create a social environment in an economical desert, but we can not also develop a sustainable economy without a sustainable social model.

Today, it seems we are trying to find new technical solutions in order to re-start the economy, while it is much more a mentality change which needs to happen. Let us take the example of the automotive industry. Today, in order to save this industry and to boost the car sales, many countries are giving allowance to people buying a “green” car. When we know that the automotive industry is in overcapacity since few years and that this industry is producing more with less people than before, this kind of measure will only produce short term effect, but fundamentally will not solve the problem.

In a sustainable economy model, the profit should only ensure the continuity of the company, giving the capability to finance new projects development. The profit is one of the components, the human resource is another. Maintain the number and the quality of the jobs contributes to maintain the know-how of your company. And this know-how is increasing everyday as long as same people are staying in the company. People should not be considered as employee, but as partners of the company. Reduce the people turnover contributes also to reduce recruitment fees and avoid to lose productivity.

To preserve the environment contributes also to a more social environment and develop a sustainable economy. By producing less and recycling more, by developing new activity fields respecting environment, we can develop a social economy giving opportunities to lower qualified people, to contribute to a high valued environmental project. We can already see such programs, gaining successful results.

Personally, I believe that a social economy is possible. It implies innovation and creativity. Creativity does not mean only to invent new things, but also to do things, to think on another way. But such transformation is possible if it is driven by the common good. It is just a question of will and intellectual honesty, to move to a society where people do not exist only by using a credit card.

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Written by Eric Saint-Guillain

November 11, 2009 at 23:16

Posted in Economy

Tagged with , , , ,

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