DO INFORMAL INITIATIVES IN THE SOUTH SHARE A CAPITALIST LOGIC OR ARE THEY THE SEEDS OF A SOLIDARITY ECONOMY? THE CASE OF SANTIAGO DE CHILE
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1 DO INFORMAL INITIATIVES IN THE SOUTH SHARE A CAPITALIST LOGIC OR ARE THEY THE SEEDS OF A SOLIDARITY ECONOMY? THE CASE OF SANTIAGO DE CHILE Thomas Bauwens Centre d Économie Sociale HEC-Université de Liège thomas.bauwens@ulg.ac.be Andreia Lemaître Université Catholique de Louvain Centre d études du développement
2 Plan 1. Introduction 2. Evolution of popular economy in Chile 3. Analytical framework and methodology 4. Analysis of the functioning logics of popular economic organizations in Santiago de Chile 5. Theoretical feedback on the notions of popular economic organization and collective initiatives
3 1. Introduction Do informal initiatives display the capitalist spirit of entrepreneurship that they are often supposed to share? Popular economy approach Stresses the embededdness of informal actors in social, political, economic and cultural contexts to understand their socio-economic practices Case of Chile: pioneering country in the popular economy movement in latin America Semi-structured interviews with a sample of popular economic organizations (n=24) Qualitative and quantitative data
4 2. Evolution of popular economy in Chile Around 1987: golden age of the popular economy in Chile 16% of people from popular districts belonged to a popular organization Condition of necessity: important unsatisfied needs Condition of identity: shared identity of «poblador» Today: the number of popular economic organizations has shrunk sharply Condition of necessity: still present Level of poverty reached 15,1% in 2009 Condition of identity: not present anymore Political reasons Economic reason
5 3. Analytical framework and methodology Models of a capitalist firm and a popular economic organization Finality Capitalist firm Capital accumulation Popular organization economic Enlarged reproduction of group members life Indicators Explicite objectives Evolution of employment Evolution of revenues Participation to extra-economic activities Diversification of income sources Beneficiary category Investors Active members, families of these members and/or the members of the community Use of surplus Support mechanisms in case of impossibility to work Dominant category Investors Active members Presence of an Assembly Decision-making processes Processes of executive management
6 4. Analysis of the functioning logics of popular economic organizations in Santiago de Chile (1) 2 types of organizations Activity-based organizations (n=16) Production of a same good or product, mostly in craftwork All informal, except 2 groups 3 generations of groups Mostly women, from marginalized districts of Santiago Low to intermediate education Little employment and revenues generated Territorial organizations (n=8) Common element is not the activity, but the territory Almost all groups have a legal personality; but not necessarily formalized at the individual level Similar socio-economic profile
7 07/06/ Analysis of the functioning logics of popular economic organizations in Santiago de Chile (2) Activity-based organizations Finality Growth dynamics Revenues Employment Growth 5 2 Stagnation 8 2 Regression 3 12 Total Political dimensions For 1 st generation organizations, the economic activity was secondary compared to the political dimension For more recent organizations, the political dimension is still present, but less strong
8 4. Analysis of the functioning logics of popular economic organizations in Santiago de Chile Beneficiary category 1. Divided 1.1. Among workers Equal shares 2 Equal shares + small saving 3 According to needs 0 According to productivity 8 According to productivity + small saving Assigned to 1 person 1 2. Reinvested in the activity 2.1. Investments in capital Investments in raw products 1 Total 16 Effectifs Dominant category All organizations but one have a General Assembly composed of the workers The majority of workers attends it systematically Democratic modes of decision making 1 person=1 vote Consensus Executive management mode: All the workers (n=6) Delegation to a leader Delegation to a group of people
9 4. Analysis of the functioning logics of popular economic organizations in Santiago de Chile (3) Territorial organizations Other specific common needs Creation of common commercialization channels Organization of common trainings Common application to governmental subsidies Political dimension Centered around the «corporatist» insterests of the sector Dominant category All organizations have a general assembly composed of workers Democratic modes of decision-making Executive management delegated to a management comitee Challenges Mistrust among producers Producers often don t see the benefits of association Short-term and local vision
10 5. Theoretical feedback on the notions of popular economic organization and collective initiatives
11 Thanks for your attention.
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