A solidarity economy is a method for naming and conceptualizing transformative monetary qualities, practices, and foundations that exist in the U.S. and everywhere throughout the world. These incorporate, yet are not constrained to, egalitarian and participatory monetary conduct by people, laborers, and makers, for example, by a person who is a moral shopper, specialist, and additionally financial specialist, or by a specialist co-op, reasonable exchange business, or dynamic association. It is an economic formation which seeks to improve the quality of life of a region or community on the basis of solidarity, often through local business and not-for-profit endeavors. It mainly consists of activities organized to address and transform exploitation under capitalist economics and the large-corporation, large-shareholder-dominated economy and can include diverse activities. For some, it refers to a set of strategies and a struggle aimed at the abolition of capitalism and the social relations that it supports and encourages; for others, it names strategies for "humanizing" the capitalist economy—seeking to supplement capitalist globalization with community-based "social safety nets". Since the 1990s, there has been an increase in solidarity-based monetary practices far and wide because of a range of reasons:
First, an expanding number of individuals all through the world are encountering weakening living conditions and developing neediness.
Second, with the rationale of free enterprise, individuals and society become assets to be misused. Their incentive as work or social connections are decreased to their value in expanding benefits.
Third, the profound natural debasement, incited by an extractive, serious and broad straight monetary model, prompting across the board contamination and environmental change
The still-evolving term "solidarity economy" is an English translation of a concept formulated in Lima, Peru in 1997, in Quebecin 2001, and in Brazil during the World Social Forum of 2001, and in Portuguese as "economia solidária". It is also represented by the French "économie solidaire" and similar terms in several other languages. As such it is sometimes translated by other expressions such as "solidarity-based economy".
Social economy
The solidarity economy is often considered part of the social economy, forming what might be termed the "social and solidarity economy". The concepts are still under development and the difference between the two terms is gradually being clarified. An organization seeing itself as part of the solidarity economy generally goes beyond achieving purely social aims: it aims to put right an injustice by expressing solidarity. For example, a local sports club has a social aim and so can be considered part of the social economy, but only under special circumstances.
Examples of organizations
The term social and solidarity economy alludes to a wide scope of organizations that are recognized from ordinary revenue driven venture, business and casual economy by two center highlights. To start with, they have unequivocal monetary and social goals. Second, they include differing types of co-employable, affiliated and solidarity relations. They include the following examples:
Fair trade organizations form part of the solidarity economy, as their aim is to express practical solidarity with farmers in the developing world by paying them fair prices for their produce.
Self-help organizations also form part of the solidarity economy as members support each other in dealing with their problems as a practical form of solidarity.
Co-operatives and especially worker cooperatives form part of the solidarity economy if their aims include a commitment to solidarity in some form.
Trade unions are often considered a key part of the solidarity economy as they are based on the principle of solidarity between workers.
