Introduction to the Asian Solidarity Economy Forum (ASEF)

by Benjamin R. Quiñones, Jr.

Chairman
Coalition of Socially Responsible Small & Medium Enterprises in Asia (CSRSME Asia)
<benqjr11@yahoo.com>

The Coalition of Socially Responsible Small and Medium Enterprises in Asia (CSRSME Asia), a
non-stock, not-for- profit organization registered in September 2004 with the Philippine
Securities and Exchange Commission, is the founding organizer of the Asian Solidarity
Economy Forum (ASEF). After ASEF I (Manila, October 2007), participants agreed to rotate
the hosting of ASEF in other Asian countries (ASEF II in Tokyo 2009, ASEF III in Kuala
Lumpur 2011).

Through its websites (www.aa4se.com; www.iisociale.ning.com) and some workshops (e.g.

Value Chain Financing of Agriculture, Social Dialogue Toolkit for Value Chain Development),
CSRSME Asia continues to play the role of a knowledge resource center on solidarity
economy and social entrepreneurship in Asia.

I. CURRENT SOCIO-ECONOMIC SITUATION

The current socio-economic situation is characterized by:

• Global crisis of mainstream economic systems (capitalist & socialist): This resulted from
the convergence of energy crisis, environmental crisis, food crisis, financial crisis and
spiritual crisis brought about by inherent conflicts within these systems themselves. Whereas
capitalism gives private capital much freedom to exploit man and environment for the
purpose of advancing profit and wealth accumulation, socialism stifles the democratic rights
of people in a bid to democratize wealth distribution. People are searching for an alternative
economy.

• Globalization of poverty: the phenomenon of poverty is no longer confined among less

developed countries. Even developed countries are now haunted by creeping poverty. The
fight against poverty can no longer be confined in developing countries. This must be a fight
joined by all nations for all nations.

• Systemic limitations of the program-oriented approach and the community development

approach: Development programs tend to be location and target-population specific. They
gloss over socio-economic interrelationships that cut across geographic boundaries, income
classes, and ethnic groups and, therefore, fail to integrate sustainability into the program
design. Moreover, politicians change them every time there is a change in administration.
There‘s a need to design development approaches that delineate interventions not only in
local, but also ‗macro‘ and ‗mega‘ systems.

• Supremacy of global supply/value chains over communities & nation states: As global
brands dominate both international and local markets, local enterprises struggle hard to find
a market niche for their products. Alternative development approaches need to integrate a
global supply/value chain perspective for the small and marginalized producers.
The Asian Solidarity Economy Forum (ASEF)
In search of a better deal for the greater majority of people, the Coalition of Socially
Responsible Small & Medium Enterprises (CSRSME Asia) organized the first Asian Solidarity
Economy Forum (ASEF) in Manila in October 2007 to trumpet the call for an alternative
economy. Although not expressly stated, the theme of ASEF I can be summed as ―Building a
People and eco-centered economy‖.

This was followed by ASEF II in Tokyo in November 2009, as participants of ASEF I decided
to hold the forum on a biennial basis and to rotate its hosting among countries in Asia. Also
not expressly stated, the theme of ASEF II could be defined as ―Visions of Solidarity
Economy – Global & Asian Perspectives‖.

ASEF III will be conducted in Kuala Lumpur, Malaysia on October 31-Nov 2, 2011. It‘s theme
is clearly specified: ―Social Enterprises as Vehicle for Socio-Economic Transformation of
Communities‖.

Expected Results of ASEF III

1. Greater understanding of Social enterprises as the focal system and building block of
solidarity economy, and that while social enterprises may have different approaches to
solidarity economy, their performance are objectively verifiable and can be measured.

2. Greater understanding of the Macro system of Solidarity Economy as consisting of the

integrated supply chains of social enterprises.

3. As a result, solidarity economy advocates in Asia establish the Asian Social Entrepreneurs
Coalition (ASEC) and endorse the Value Chain Development Program (VCDP) as its flagship
program, with the view to vigorously promoting solidarity economy and social
entrepreneurship in Asia.

4. Greater understanding of the need to strengthen the Mega system of solidarity economy
by encouraging support from the government, private corporate sector and international
networks of development organizations.

5. In support of solidarity economy‘s Mega system, the following initiatives for capacity
building, information and experience sharing are endorsed: (i) ASEF IV to be held in 2013 in
conjunction with (ii) RIPESS International Forum on the Globalization of Solidarity Economy;
and (iii) CEOs Seminar on Solidarity Economy and Social Entrepreneurship.

The focal system of Solidarity Economy is the Social Enterprise, a mission oriented
organization with the triple-bottom-line goals of social development, environmental
conservation, and sustainability. Its Macro system consists of supply chains of social
enterprises whose activities are inter-connected. Its Mega system is composed of the
integrated supply chains of social enterprises and the government, the private corporate
sector and the Rest of the World, particularly those parts of such ‗external sector‘ which
support and do business with social enterprises.

Strengthening of solidarity economy‘s mega system is important for the growth and
development of its Focal and Macro systems. Efforts must, therefore, be also geared
towards cultivating support for solidarity economy and social enterprises from the
government, the private corporate sector, and international development agencies. The
participation of these sectors in ASEF is crucial. In addition, a more concerted effort to tap
the support of these sectors can be made by enjoining them to participate in the annual
―CEOs Seminar on Solidarity Economy and Social Entrepreneurship‖.

II. WHAT IS SOLIDARITY ECONOMY?

Solidarity Economy has been defined in various ways:

1. ―Activities of production, distribution, and consumption which contribute to the

democratization of the economy based on the involvement of citizens at a local and global
level.‖ International Forum of the Alliance for a Responsible, Plural and United World, 2001.

2. ―Alternative economic model to neoliberal capitalism, one which is grounded on solidarity

and cooperation, rather than the pursuit of narrow, individual self-interest‖. U.S. Solidarity
Economy Network, U.S. Social Forum 2007

3. ―An alternative economic order where all players work together toward a shared goal of
uplifting the lives of all—that is, an economy built on solidarity rather than on competition
and conflict .‖ Asian Solidarity Economy Forum, Manila, October 2007.

4. ―An economy centered on people, not on profits, and on ecological sustainability, instead
of on immediate gains at any cost. ‖. Marcos Arruda, Institute of Alternative Policies for
Southern Cone of Latin America

5. ―An economy with compassion and sympathy; it gives priority to the welfare of the people
and not to increasing profits for self-gain.‖ .‖ Asian Solidarity Economy Forum, Tokyo,
November 2009.

6. ―An economy comprising supply chains of enterprises which have triple-bottom-line goals
of eradication of poverty & social exclusion, environmental conservation, and sustainability ‖.
Asian Forum on Value Chain Financing, Manila, November 2010

As shown above, advocates and practitioners view Solidarity Economy from different
perspectives. One approach is to look at it in terms of the economic activities that contribute
to greater participation of people in the economy. Another approach is to compare the
motivation of economic actors in solidarity economy as against those in the mainstream,
profit-oriented economy.

Other definitions categorically cite the element of altruistic compassion as one that sets
solidarity economy apart from the profit-oriented economy. Still others put emphasis on the
triple-bottom-line goals of solidarity economy as opposed to the single-bottom line goal (i.e.
profit) of the mainstream economy.