KIRA LILJEGREN - ICA LEGAL POLICY INTERN
As Generation Z enters the workforce, it is becoming clear that the traditional, familiar capitalist economic model that so much of today’s society is built on has outlasted its welcome–and Gen Z’ers are prepared to dismantle it brick by brick. Our generation has been known for its rejection of the traditional profit-centered capitalist career path in favor of our
own personal work-life balance and the wellbeing of our community, leading to constant accusations from older generations about our “lack of work ethic.” This could not be further from the truth: Generation Z is not lazy, but merely tired. We are tired of seeing how capitalist systems exploit and destroy people, communities, and the environment, and we are desparate for a solution. As it gains increasingly more recognition in the international stage, the Social Solidarity Economy (SSE) could prove to be the answer we have been searching for.
On April 18, 2023, the General Assembly of the United Nations officially adopted its first resolution regarding the SSE entitled “Promoting the Social and Solidarity Economy for Sustainable Development.” The decision represents a huge win for the cooperative movement as well as all “other entities operating in accordance with the values and principles of the social and solidarity economy,” and shows significant promise for the future of the SSE in terms of global visibility/awareness and compatibility with the UN’s Sustainable Development Goals.
This resolution from the UN General Assembly comes in the wake of the International Labor Organization’s (ILO) “Resolution Concerning Decent Work and the Social and Solidarity Economy” published in June of 2022 which defines the SSE in section two paragraph five as: “encompass[ing] enterprises, organizations and other entities that are engaged in economic, social and environmental activities to serve the collective and/or general interest, which are based on the principles of voluntary cooperation and mutual aid, democratic and/or participatory governance, autonomy and independence and the primacy of people and social purpose over capital in the distribution and use of surpluses and/or profits, as well as assets.” In particular, the cooperative business model is referenced by name several times in both the resolution from the UN General Assembly as well as the one from the ILO. This is not surprising, seeing as the SSE and cooperatives are foundationally connected–it is impossible to mention one without considering the other. Within the ILO definition of SSE provided above, four of the Cooperative Principles defined by the International Cooperative Alliance (ICA) are mentioned by name: voluntary and open membership, democratic member control, autonomy and independence, and concern for community.
Through these principles, the SSE presents a viable alternative economic model to capitalism and other authoritarian or state-dominated economies beyond the often-proposed solution of socialism. The SSE puts the power back into the hands of the people and allows them to take an active role in developing all different aspects of their communities and larger society. Unlike capitalism, which tends to glorify the focus on and pursuit of profit, the SSE promotes communal welfare–and given the present global trend of deepening poverty and severely declining living conditions for large swaths of the population, the solution the SSE represents is more necessary than ever.
Under the SSE, cooperatives have made significant contributions towards the promotion of communal welfare. Cooperatives uplift and empower women: the Bukonzo coffee cooperative union in Uganda is comprised of 85% women who are trained in courses designed to develop business skills they might not otherwise have access to. Additionally, cooperatives are helping to tackle poverty and food insecurity on a global scale, with over 75% of fairtrade products coming from cooperatives. These are just a few of the ways in which cooperatives and the larger SSE concept can and are already accomplishing their mission of helping people worldwide and uplifting communities. While the SSE and its underlying driving concepts have existed nearly as long as humanity itself, the term “Social Solidarity Economy” and the push for its revival are fairly new. The cooperative movement, which traces its roots back to the 1830s, has been a global driver of what is now termed as the SSE and is expected to contribute significantly to the modern effort to promote, position and proliferate the SSE concept worldwide. The “people before profit” mentality embodied by cooperatives is the core ideal of the Social Solidarity Economy. In an interview, President of the International Cooperative Alliance Ariel Guarco referred to the UN SSE resolution as “a historic moment for the SSE family.” Indeed, the resolution promises to give the SSE, as well as the various types of organizations that it encompasses, an unprecedented new level of visibility: a sentence from page one of the official resolution document reads, “Social entrepreneurship, including cooperatives and social enterprises, can help to alleviate poverty and catalyze social transformation by strengthening the productive capacities of those in vulnerable situations and producing goods and services accessible to them.”
As previously mentioned, this concept is especially relevant in our day and age as the world searches for a cure to the wounds caused by the exploitative principles of capitalism. During the financial crisis and subsequent great recession of 2008 caused by the downfalls of capitalism, more than 8.7 million jobs were lost in the United States alone, generating an approximate $16 trillion loss in the net worth of American households that took years to recover from. In developing countries, capitalism’s tendency to encourage competition is even more detrimental–corporations prioritize their own private interests over the rights of their workers, perpetuating poverty in those countries and and exploiting the people who live there. If the world continues down this path, the disparities between the top earners and the poorest individuals will only become more exaggerated, generating still more suffering. The importance of the visibility given to the SSE by this new UN resolution, therefore, must not be understated; in particular, it is extremely likely to grasp the attention of Generation Z as they enter the workforce. Many Gen Z’ers across the globe have been arguing for the principles of the SSE without knowing of its existence. Now, the momentum generated by the UN’s adoption of this new resolution and any global business model adjustments it will inspire could be the very spark it takes for awareness of an alternative to capitalism to spread to the newest generation of workers. If and when that happens, Generation Z will invariably fight on the movement’s behalf, which may someday help lead to a new, people-first economic approach at a global scale.
Kira Liljegren