Economics for Social Solidarity

Economics is a social science that studies the ways in which societies organize themselves to satisfy human needs. Its objective is to study the production, distribution, exchange and consumption of goods and services.

The economic system inspired by market economy has been adopted and enhanced in the last five decades by most Latin American countries. The ideologues of the subject have promoted the market as an "engine of the economy" and "social organizer", leaving societies subject to the "tutelage and supremacy of the market".

Since economics is a social science, it must be expressed in the substantive improvement of people’s living conditions, that is, in general well-being. However, there is multiple evidence that points to an orientation towards an economy of the material or things above an economy focused on improving people’s quality of life.

The Social Panorama 2019 report of the Economic Commission for Latin America - ECLAC details important setbacks in the recovery of Latin America in terms of poverty. During the period in question, Latin America had 30.8% of the population (191 million people) on the poverty line and 11.8% (77 million people) on the extreme poverty line, a situation that will undoubtedly become more acute in the new decade with the effects derived from the SARS-CoV-2 pandemic caused by COVID-19.

According to data from ECLAC and OXFAM, 10% of the population in Latin America and the Caribbean holds 71% of the wealth and only 5.4% of their income is taxed. The concentration of income and wealth is at the heart of social inequality in the Latin American region.

"Between 2002 and 2015, billionaires’ fortunes in Latin America grew an average of 21% per year, that is, an increase six times greater than the GDP of the Latin American region. Much of this wealth is kept tax-free or in tax havens. It is a shame that in most countries in the region the progressive increase in the rate and VAT-paying goods continues, instead of tackling tax evasion and reducing the exemptions received by those who have more", said Simon Ticehurst, Director of OXFAM for Latin America and the Caribbean.

The concentration of production of activities with high remuneration of financial capital is the determining factor for the excessive accumulation of wealth, which is not expressed either in the growth of taxation, or in mechanisms of economic democracy to promote actions within a "more just economy".

The turmoil of the market has shown that, in its spirit of accumulation, it focuses its action on the interests of a small part of society, deepening social problems and prevailing private interest - individual or corporate - over the general interest.

In the face of the cannibalism of the market, the collective vision of solidarity must be rescued as a fundamental element for sustainability and social promotion. According to the French sociologist Emile Durkheim, social solidarity is in the collective consciousness of societies, different social groups that make up a community need solidarity for the development of a series of activities for which they must collaborate and support each other.

Holistically, social solidarity can change the conditions, decisions and actions on which the social system in our countries gravitate.

Social solidarity should lead us to have figures of the Social Rule of Law, that protect collective interests and integrate public interest problems in their agendas, such as health, education, food security, water supply, basic services, protection, custody and proper exploitation of natural assets and respect for human rights.

The high levels of corruption and illicit enrichment must be reduced, among others, as part of the scourge of "questioned and deficient governance" in most Latin American countries. It is essential to promote public policies with an ethical and solidary vision, which meet the immense needs of citizens and with a commitment to the good of the citizen.

A more humane, supportive, equitable and sustainable economic system that offers opportunities for healthy coexistence with principles of economic democracy and social justice must be promoted.

In general, human solidarity must lead us to reduce the scourge of political, economic and social corruption, which impacts idealism and collective hope.

In the decentralization or outsourcing of state services, the opportunity should be given for small and medium-sized companies, cooperatives, producer associations and collective organizations, to be part of the State’s production, service and supply chain, without concentrating business in small groups of big companies.

In general, the State should offer opportunities to promote all companies in society, SMEs and large companies, private, public and social, with private or collective capital, local, national and international, that contribute to the generation of wealth. In addition, it must guarantee strict compliance with public policies of adequate distribution, social investment and economic democracy.

From an integral perspective, development implies a proximity between political power and people. The exercise of citizenship, in the search for greater equity, requires that society develops systems to protect and promote opportunities, so that the citizen is a participant in the benefits and an actor in development.

A new "public capital" should be promoted that allows the diversity of actors to participate in the construction of the social agenda. Another view of the economy must prioritize people’s well-being, placing resources, wealth, production and consumption as means to achieve this end, where solidarity becomes the fundamental component of the new normal.

Collective solidarity must allow us to reaffirm actions for the common good. As noted by the illustrious thinker and political leader Mahatma Gandhi: "Resources are really sufficient, but their administration is wrong. On Earth there is enough to meet everyone’s needs, but not enough to satisfy the greed of some".