Introduction
International NGOs, also known as INGOs, are global independent organizations that act in humanitarian or social areas. They are intended to make a contribution to the efficiency of the government in terms of social economy (Hossain and Sengupta 10). By advancing the rights of vulnerable population groups, these organizations create a number of financial opportunities for their members, and they consequently result in the improvement of the overall economic situation.
An example of an international NGO in the context of the Southern economy is an organization from Bangladesh BRAC (Bangladesh Rural Advancement Committee). Its objective is to spread the program of financial assistance to the Southern countries, such as Afghanistan, Liberia, Sudan, Pakistan, and many others (Hossain and Sengupta 3). The rapid growth of BRAC contributes to the expansion of microfinance and similar services designed to eliminate the overall level of poverty in target countries and increase the consciousness of their citizens. Thus, the significance of such companies as BRAC is derived from the necessity to assist the nearby countries for the mutual socio-economic benefit.
Alterna and Credit Unions
Credit unions are organizations rendering financial services to various communities all over the country in order to increase the general well-being of all its citizens. These organizations are regulated by the government but owned by private persons. The cooperation of public and private actors is beneficial in terms of finding solutions for social issues (Nembhard 463). The services of such entities are, in general, similar to the ones of commercial banks. Still, the difference is in their focus on low-income citizens rather than the financially stable ones.
Alterna Savings Credit Union of the Alterna Bank is one of the examples of such micro-loan programs with numerous branches throughout Canada. This social economy business is one of the leaders in financial services providers in the country. The organization’s principal objective is to achieve environmental sustainability by increasing the citizens’ financial literacy and ability to deal with money in the long-term perspective (Mitchell and Mook 121). Financial support of individuals by such organizations results in the improvement of the socio-economic situation in the country for the benefit of the government and all its citizens.
The Black Social Economy
The social economy of the Black population in the United States is explained by the existence of disparities between different communities. In this regard, the situation of the Black citizens is not as privileged as one of some other population groups of the country in terms of financial services provision. That is why numerous organizations are developing special programs intended to assist the members of this population group.
One of the ways to provide assistance for Black communities in the United States is the development of credit unions. Their objective is to ensure the availability of various financial services for population groups in order to eliminate disparities (Nembhard 459). Community Development Credit Unions aim at educating citizens on how to use financial assets properly and save money for their future needs. They make a significant contribution to the consciousness of the Black communities’ members and allow them to avoid the negative outcome of improper finance use.
Social Enterprises and the Cases
Social entrepreneurship is a concept that aims at the creation of social values providing innovative opportunities to the citizens with the help of available economic resources (Peredo and McLean 56). This concept is quite popular among various organizations that want to explore the benefits provided by social entrepreneurship. Its principal objective is to use economic resources in order to deal with emerging social issues, such as disparities between the population groups in terms of financial services provision.
Numerous organizations of the Southern countries intend to implement the concept of social entrepreneurship and significantly improve people’s life by satisfying the need for social change. Thus, for example, at present, there are over 10,000 NGOs in Bangladesh established over the past twenty-five years (Bornstein 4). This drastic change in the number of environmental and other socio-economic organizations reveals the general tendency of the Southern countries.
Women in the Social Economy
One of the categories of citizens that have a tremendous impact on the development of the social economy in the country is women. In the context of Southern countries, the creation of various microfinance programs primarily has an effect on the female population. According to Sengupta and Aubuchon, the percentage of women seeking assistance in multiple programs accounts for 70% (34). In the case of the Grameen bank with its microfinance initiatives, 95% of all clients are women as well (Sengupta and Aubuchon 34). The reason for their prevalence lies in the allegedly more substantial impact of their activity on the household in comparison to men.
The significance of the programs focused mostly on women is in the increase of literacy among them, which also contributes to the improvement of the socio-economic situation of the country. The primary impact of such actions is on the children, their education, and general well-being as these benefits are ensured mostly by the female population (Sengupta and Aubuchon 34). Thus, some areas of socio-economic activity of the citizens in the Southern countries can be influenced by women, and this fact explains the orientation of banking programs on this population group.
Microfinance
The term microfinance refers to the banking instrument used for eliminating poverty in a country by providing small loans to poor people. There are no boundaries for the use of microfinance for the benefit of citizens and, consequently, the government. Unemployed or low-income people have equal chances to benefit from this tool. With the help of such a mechanism as microfinance, everyone has an opportunity to change his financial status. Therefore, microfinance is crucial for poverty alienation on the governmental level.
A clear example of the use of microfinance in terms of promotion of social equity is the case of the Grameen Bank in Bangladesh. It started this practice in 2006 and still renders this kind of services to the low-income population of the country (Sengupta and Aubuchon 9). The so-called Grameencredit is given to those low-income or unemployed citizens, who have been rejected by commercial banks due to their financial status. Hence, the interest of the Grameen Bank is not in the increase of its profit, but in the poverty elimination all over the country. Despite the fact that that the primary focus of the bank is the social aspect, it does not necessarily mean that it receives no profit from these operations.
Case Studies and their Impact on Social Economy
The rapid development of the present-day world and its businesses leads to the emergence of various social issues. They are connected to the change in people’s income that results in disparities between population groups. Whereas most companies focus on the profit, some organizations intend to use their capacities for finding solutions for such issues.
However, there is a need for monitoring their progress toward the initial objective. The instrument that allows the researchers to render their opinion is a number of cases from different countries. The task of a researcher is to define whether these cases can be useful for the understanding of the social economy or other methods should be developed.
The term social economy relates to the establishment of social entrepreneurship and the proposal of social innovation for the improvement of the socio-economic situation. Such measures derive from the capacities of the present-day companies to solve various social problems like unemployment, poverty, or poor health (Hossein et al., 258). Therefore, the companies that are focused on finding solutions for these issues play a significant role in modern society.
There is a common element that characterizes social enterprises all over the world. Quarter et al. claim that it refers to the inclusion of the basic idea in the programs of such organizations or, in other words, the social purpose of the company (3). The examples of a social purpose can be found in any organization that focuses on societal issues. One of their principal areas of work is the overall health of the population. In order to achieve this goal, such companies as Alive and Kicking target social enterprises in Africa that produce sports equipment. Their support promotes the creation of fairly paid jobs and, consequently, the donations to disabled children (Social Enterprise Draws on Football). In this case, one can see the social purpose that the organization follows and its effect on the existing health issues in Africa.
Another example of the social economy cases is the organizations in Japan emerging due to the governmental policy of non-intervention in the private sector. It has led to the necessity to eliminate discrimination and biased attitude towards specific categories of citizens. The provision of assistance to disadvantaged groups such as disabled or homeless people became Japanese society’s most significant concern. Hence, private businesses happen to be the ones that can control the socio-economic situation in the country.
The Swan Bakery in Tokyo, established by Masao Ogura, represents the social purpose of helping the vulnerable population groups. Being the owner of the company, he made a decision to employ and train only disabled people in order to provide them with stable income and prove that it is possible in the context of Japan (Kai). His actions allowed him to encourage disabled people all over the country to live a full life. The case of Masao Ogura shows that the focus of the company on this population group does not necessarily mean the decrease in profit.
The consideration of the two cases has revealed their usefulness for the research of the social economy and its trends. Both African and Japanese examples demonstrate the availability of capacities of the companies that allow them to make a contribution to the improvement of the economic situation of the society. They also clearly state the social purpose they follow in order to achieve the initial objective. Thus, the analysis of cases can be a reliable source of information and an appropriate method for further research in the area of social economy.
Works Cited
Bornstein, David. How to Change the World Social Entrepreneurs and the Power of New Ideas. Oxford University Press, 2007.
Hossein, Caroline, et al. Business and Society: A Critical Introduction. Zed Books, 2017.
Hossain, Naomi, and Anasuya Sengupta. “Thinking Big, Going Global: The Challenge of BRAC’s Global Expansion.” IDS Working Papers 2009. Vol. 339 (2009), pp. 01-42.
Kai, Yui. “Swan Bakery, Japan (SE Case Studies on Asia 3 of 8),” 2010.
Mitchell, G.E. Laurie Mook (ed.): Accounting for Social Value. Voluntas vol. 25, pp. 277–279 (2014). Web.
Nembhard, Jessica Gordon. “Community Development Credit Unions: Securing and Protecting Assets in Black Communities.” The Review of Black Political Economy vol. 40, no. 4 (2013), pp. 459-490.
Peredo, Ana Maria, and Murdith McLean. “Social Entrepreneurship: A Critical Review of the Concept.” Journal of world business vol. 41, no. 1 (2006): pp. 56-65.
Quarter, Jack, Sherida Ryan, and Andrea Chan. Social Purpose Enterprises: Case Studies for Social Change. University of Toronto Press, 2014.
Sengupta, Rajdeep, and Craig P. Aubuchon. “The Microfinance Revolution: An Overview.” Federal Reserve Bank of St. Louis Review, 2008, vol. 90, no. 1, pp. 9-30.
“Social Enterprise Draws on Football for Impact in Africa.” British Council. 2016.