Sociale economie - De 99 van Amsterdam

'To democratise our economy, we must regain control over capital, over our banks, our country and property. In the hands of real people and communities, so that they can decide.’Marjorie Kelly, vice-president Democracy Collaborative

A just, social economy serves the well-being of people and planet: 6 transitions.

These are the results of dozens of conversations, discussions and exchanges of Cities for Change. Door uiteenlopende deelnemers en organisaties uit Amsterdam en andere steden in Europa.

Everything interconnects. Housing crisis. Inequality, both social and financial. Energy poverty. Exhaustion of the planet. Climate crisis. Gentrification pushing people wit less money out of neighbourhoods, out of the city. Money flowing out of the city to international companies and shareholders. Platform workers who are poorly paid and have uncertain contracts. Social and civil initiatives that depend on subsidies while businesses rake in substantial tax credits.

Transition

A just, social economy serving the well-being of people and planet. This requires system change, to structually start by determining what provides us with value and well-being.

Value is plural: money, employment, local entrepreneurship, safety, equality, cooperation, education, health, nature, quality of life, social networks. Plus, value varies per city, district or neighbourhood. In this, residents instead of businesses, should have the deciding voice. This so-called multiple value creation is a layered and complex process. At its core is meeting our essential needs: care, water, energy, food, education, housing, public space, public transport and mobility.

‘A different take on the economy, changing the dominant narrative: that is a multi-faceted challenge, not a flick of a button.’Rutger Groot Wassink, alderman for Social Affairs in Amsterdam

‘Economics is a social science, made by people and changeable by people.'Marieke van Doorninck, alderman for Sustainability in Amsterdam

Recommendations

Thriving over growth Including an instrument to measure and monitor – because figures are required for analyses, political and policy choices, and direction.
Growth and gross national product (GDP) are mainly about money. Thriving comprises the value of the city and the well-being of its residents. Value and well-being are broadly defined: money, employment, local entrepreneurship, cooperation, education, health, nature, quality of life, social networks, etc.
Politics and policy must guide the social economy, and this requires something different than GDP. Like the Brede Welvaartsmonitor (broad well-being monitor) or a dashboard for the welfare economy with a range of layered indicators – as recommended by a growing number of economists and large institutions such as the OECD.
From the market as the leading principle towards an economy of essential services Care, water, energy, food, education, housing, public space, public transport and mobility: all too important to leave exclusively to the market and they cannot be suspended without disrupting our daily lives. The most important task of a (local) government is to safeguard such essential services. Including decent wages and conditions for the people providing these basic needs. And in a way that protects our climate and the environment.
From inequality as an outcome to better redistribution in advance There is wealth. It is simply distributed unevenly and the gap between rich and poor and social inequality are on the increase. A small group of multinationals and residents has an abundance of opportunities and is getting richer, the (financial) prosperity at the top is not trickling down, the middle classes are struggling.
A different kind of redistribution is required, so-called pre-distribution or distributive by design: restructuring the economy so that we share in the wealth that we create in our economies from the start. This is not only about money, but also about land, businesses, technology, knowledge.
From top-down to bottom-up: democratisation of the urban economy A large part of economic policy benefits large enterprises, such as tax credits and business establishment policies. However, they often lack a connection to the city or neighbourhood and give back little to the city and its inhabitants.
A just and democratic economy starts from the bottom up. In the right mix of citizens, government, the market, local businesses, social enterprises, cooperatives, commons, neighbourhood collectives and networks. To create value in a city or neighbourhood and let it flow back to residents.
From public-private to public-civil: citizens take their place at the negotiating table The government shifts collaborations: where it now works mainly with large private companies in public-private partnerships (PPPs), PCPs, public-civil partnerships are established instead. The C may stand for collective, cooperative, commons or community. Organised citizens and workers – including future generations – co-decide and enjoy stronger ownership, particularly in essential services. And instead of shareholders, it is residents who profit from economic returns.
From extraction to circular, from depletion to recovery Whether it’s energy, raw materials or the city: we live in a model of extraction, of take-make-use-loseThe energy mix continues to rely on fossils and the growth of fossil industries is counted as a positive contribution to economic growth. Raw materials are used up in single-use products. And large companies and international investors generate profit in the city for bank accounts elsewhere.
A circular economy is regenerative, restorative. At every level. Naturally, it is about losing the least amount of valuable inputs and raw materials in the production of goods and food. Energy comes from renewable sources, in an equitable socio-ecological transition. Circular also comprises financially circular: value remains in the city because economic returns flow back and are reinvested in the city and its inhabitants.

Finally These recommendations owe their existence to visions from welfare economics, the caring economy, the degrowth movement, feminist economics. Commons and the donut… All cousins, brothers and sisters of the social economy, as activist and economist Katherine Trebeck explains.

There are plenty of strategies, methods and models to bring these transitions about. Read more about:

What foundational economy looks like
What a dashboard for the social economy entails
The doughnut economy
The neighbourhood economy and community wealth building in Amsterdam
How citizens and governments can cooperate in public service provision
How the energy transition can be shaped in a just and equitable manner

‘A different take on the economy, changing the dominant narrative: that is a multi-faceted challenge, not a flick of a button.’Rutger Groot Wassink, alderman for Social Affairs in Amsterdam

Why do we need a social urban economy?

In almost all discussions on Cities for Change one vision resurfaced time and again: A one-sided focus on gross domestic product (GDP) growth is undesirable. That we must move towards an economy serving well-being – or broadly shared prosperity – is broadly accepted in society and science. This should include policy instruments, in particular at the urban level.