the financial world must act – Liberation

Trading for the living: forum

Trading for the livingfile

The actions of economic players, including banks, are regularly flagged for their negative impact on living organisms. But they can choose to support the social and solidarity economy financially and actively. A way to develop.

Often misunderstood, the Social and Solidarity Economy (ESS) works for the living. An inclusive and innovative attitude at the service of the collective interest of the 2.4 million SSE workers in France, or 13.6% of salaried employment in the private sector. Behind the figures are women and men within companies, foundations or associations. They develop, mobilize, bring, campaign, save, innovate in different sectors: environment, organic farming, banking, health, culture, sports, mutual insurance, etc. So many actions to be financed to put the economy back at the service of the long-term the living, the real and the local population.

Thus, from economic actors who are solely suppliers of goods, services and jobs, society has seen the birth of alternative organizations such as cooperatives or associations. Aware of the shortcomings of the existing system, people organized as a collective have gathered for over a hundred years to meet their common economic, social and cultural needs. Since ownership is collective and power is exercised democratically, these structures favor human capital (and thus a form of protection of life) as the decision-making model (one person = one vote).

Social benefit and solidarity

Fight against inequalities, for the inclusion of people with disabilities, defense of biodiversity: the organizations that are part of the program want to reconcile social benefit and solidarity. Also economic performance and democratic governance in favor of greater social cohesion and proximity to the areas. But they need funding.

Financing this mode of economy is tantamount to supporting the protection of life in all its dimensions. In addition, money is available and at the same time, many projects are emerging and developing with a notoriously positive impact. There are many financing levers, including tracked financial products (current accounts and savings). It is a matter of knowing what will be used for the money entrusted by individuals to support, in the form of loans, the financing of sustainable and responsible projects. The person can choose to support a territory and/or a sector of activity, or even some form of entrepreneurship of the borrowers (cooperatives for example). The second instrument, the Mutual Fund for Solidarity Enterprises (FCPES), is also called “90/10” (because up to 10% of the amount is to fund solidarity enterprises). Savers thus support different projects: integration through economic activity, highly social housing, sustainable mobility, etc.

save inspiration

Finally, impact loans. The principle is to vary the interest rate of the loan according to the degree of realization of ESG (environmental, social and governance) criteria. They are reserved for companies, foundations, cooperatives, associations and have a direct incentive effect for the borrower. The latter benefits from a reduction in its financial burden if it achieves its non-financial targets.

Our societies face unprecedented challenges to sustain life. To respond to this, we need to stay innovative, know how to draw life-saving inspiration from the model championed by the SSE, and support project leaders. As Delphine Horvilleur, philosopher and rabbi, asserts with conviction: “You must know how to emancipate yourself from the world that precedes us, and find in tradition what could once have been a yeast of rebellion.” So many arguments for turning the economy in a broad sense into a means towards a society that protects people, fauna and flora. This is a must, a necessity for our future.

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