Definition
The solidarity economy refers to the set of economic activities that aim to go beyond market-centred and competitive economic relations, and that are based on the principles of reciprocity, cooperation, and social benefit.
Scope
The solidarity economy encompasses various forms such as cooperatives, collective initiatives, community-supported production models, commons, and alternative financial practices. What these structures share is a prioritisation of meeting social needs and fostering egalitarian relations, rather than maximising profit.
Distinction
The solidarity economy differs from the capitalist market economy in the following ways:
It is based on cooperation rather than competition.
It prioritises social benefit rather than profit.
It promotes more horizontal and democratic forms of organisation instead of hierarchical structures.
Historical example
While solidarity-based initiatives are as old as human history, there exists a broad historical trajectory ranging from the cooperative movements of the nineteenth century to contemporary solidarity economy networks in Latin America. The concept of the “solidarity economy,” or “social and solidarity economy,” has gained renewed momentum in both theory and practice in recent decades, particularly in response to the disruptive effects of neoliberal policies.
Evaluation
The solidarity economy can be understood as an effort to develop alternative forms of production and distribution outside dominant economic relations. However, its interactions with the market also reveal the limits and contradictions of these experiences.