Solidarity Economics: Relegating profits, promoting people. Part 1 of 2

Previously we addressed the topic of economic disparity in our nation. We painted a rather bleak picture of the present situation but a propitious future awaits us. It is our opinion that if we were to implement a policy of localized economics, where consensus and uniform participation were the foundation, we would move towards a more socially just and responsible nation.
What are Solidarity Economies?
Economy: The many different ways in which we human beings collectively generate livelihoods in relation to each other and to the rest of the Earth.
Solidarity: The process of taking active responsibility for our relationships in ways that promote diversity, autonomy, cooperation, communication, and shared-power (direct democracy).
Solidarity Economies are enterprises which rely on humane principles instead of the competition and greed often underlying the corporate market. They focus on getting everyone's needs met without exploitation, and they expand the possibilities for those who don’t have the funds to participate in standard cash markets. The values of respect, cooperation, and democracy are embedded into every step of the economic chain: creation, production, exchange, consumption, and surplus distribution.
Solidarity economies function through networks, associations, social movements, the non-profit sector, and worker coops. They emphasize women initiatives, ecological agriculture, ethical financing, and democratized technology.
Here are some forms they may take:
House holding economies—meeting basic needs with our own skills and work at home and on or with the land: raising children, offering advice or comfort, resolving relational conflicts, mentorship, teaching basic life skills, cooking, sewing, cleaning the house, building the house, balancing the checkbook, fixing the car, gardening, farming, raising animals. These are the types of work that have often been rendered invisible or devalued but they will be the focus for our social programs for the rural school going population of Kenya.
Collective economies—in their simple form these economies are about pooling our resources together (sharing): bringing food to a potluck supper, carpooling, lending and borrowing, consumer co-ops such as food buying organizations that buy food in bulk at a discount and share among members. Those based on common ownership and/or control of resources: such as health care collectives, community land trusts, and more.
Scavenging Economies—living on the abundance of Earth’s own gift economy: hunting, fishing, and foraging. Also living on the abundance of human wastefulness—salvaging from demolition sites, using old car parts and recycling instead of sending to the landfill
Gift economies—giving some of our resources to other people and to our communities: volunteer fire companies or neighborhood watch groups, community food banks, having neighbors over for dinner or throwing a neighborhood block or village party.
Worker-controlled economies—workers deciding the terms and conditions of their own work: self-employment, family farms, worker-owned companies and cooperatives.
The cooperative model
The cooperative model presents a stark contrast with conventional capitalist corporations. Co-ops offer shared ownership and democratic control. Those who benefit from the enterprise own it, and own it as equals: one member, one vote. The purpose of the enterprise is to benefit its members, not to use their economic activity as the basis for someone else’s returns.
Brazil: The Harmony Agricultural Company
The Harmony Agricultural Company has become Brazil's largest worker-managed business in the solidarity economy. It provides employment for 4,300 families who work 26,000 hectares of land, and its main activity is producing sugar at 48 mills.
When the company was in crisis in 1993, the workers applied for the owners of the company to be forced to declare bankruptcy, and took over the firm's administration, under the supervision of the justice system. Since then, they have resumed sugar production and diversified into other agricultural and industrial activities. They are also growing cassava, fruit, maize, potatoes and even raising livestock, in a family farming system based on agricultural cooperatives.
Benefits:
• The use of manual labor thereby creating more jobs.
• Social inclusion for area residents thereby less idlers and dependents on government welfare.
• More taxes for the municipalities thereby more public services offered.
• The local economy is boosted by the greater spending power of the residents.
• Rural-urban migration is reversed due to the availability of local employment.
Spain: Mondragón cooperatives
The Mondragón cooperatives in the Basque region of Spain form the best-known coop system anywhere, and have inspired emulators the world over. Launched in 1956, the Mondragón complex has grown from a single, five-member coop manufacturing kitchen appliances into a massive enterprise with over 30,000 workers and annual sales of $5 billion
History of Mondragón
When a priest named Jos‚ Mar¡a Arizmendiarrieta first arrived at the Mondragón parish in 1941, he found a town devastated by the Spanish Civil War. His aim was to confront high levels of unemployment that kept the region in poverty and isolation. His working philosophy was to put the rights and well-being of workers first, with growth mainly aimed at providing additional jobs and job security to employees. He set about rebuilding, establishing a vocational school for Mondragón's many working-class children who had no chance at education. Eventually, under his tutelage, five of the school's graduates went on to win engineering degrees and then, in 1956, start their own factory in Mondragón. Their domestic appliance company quickly generated strong profits. They reinvested these profits back into the business, reserving only a small portion for workers' own "capital accounts" which individuals could draw upon only when they left the co-op.
Challenges and solutions
When one of the Mondragón cooperatives fell on hard times, the worker/owners and the managers met to review their options. After three days of meetings, the worker/owners agreed that 20 percent of the workforce would leave their jobs for a year, during which they would continue to receive 80 percent of their pay and, if they wished, free training for other work. This group would be chosen by lottery, and if the company was still in trouble a year later, the first group would return to work and a second would take a year off. The solution worked and the company thrives to this day.
The central importance of workers permeates every aspect of the Mondragón Cooperatives. Even though the MCC businesses are affected by the global financial crisis, there is no unemployment within the MCC businesses. People are moved around to other jobs, or hours are cut without cutting pay. The wages for un-worked hours are to be repaid through extra hours worked later in the year.
Conclusions
We have stated our opinions, disdain actually, on globalization and the international trade pacts that are skewed in favor of industrialized nations. The Ministry of Local Government has undertaken some projects with its ‘development partner’, the European Union. We oppose this idea on the basis that it is non inclusive and non participatory for the people most be affected by the projects.
Solidarity Economics in its various forms, tweaked for the Kenyan situation, may provide the impetus to bring development to our nation. In the next article we shall give further examples and provide an adaptable summation of implementable ideas.
The ideas housed in this blog will form the basis of a new people-power movement to be known as the African Economic Democracy Movement which will later morph into a political party.
Reader responses welcome.