Solidarity finance through community development banks as a strategy for reshaping local economies: lessons from Banco Palmas

Filho, Genauto Carvalho de França; Silva, Jeová Torres; Rigo, Ariádne Scaldoni

doi:10.5700/rausp1054

Cited by 27 publications

(28 citation statements)

References 4 publications

(4 reference statements)

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“…This was also the case for the nonprofit organization managing and issuing the currency, which is a self-managed organization (França Filho et al, 2012). Indeed, the governance of Banco Palmas relies on several community participation arenas that enable community members to participate in defining different organizational strategies (Hudon and Meyer, 2016).…”

Section: Palmas In Brazilmentioning

confidence: 99%

“…In addition, the Palmas currency aims at creating new communities by giving new meanings to trade and exchanges (França Filho et al, 2012). Banco Palmas is a solidarity economy organization willing to promote cooperation and solidarity between community members and businesses.…”

Section: Palmas In Brazilmentioning

confidence: 99%

“…Both these financial services aim to support production and consumption within the neighborhood with the objective of consolidating economic activities. The local currency also aims to encourage reflection about the role of money in the economy and financial flows in territorial development (França Filho et al, 2012).…”

Section: Complementary Currencies As Commonsmentioning

confidence: 99%

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Alternative organizations in finance: Commoning in complementary currencies

Meyer

Hudon

2017

Organization

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The commons are alternative social and economic practices for fostering community development and regeneration. While the role of finance is increasingly criticized as a trigger for individualism, community currencies (CCs) are one of the financial initiatives that aim to reorganize finance in the collective interest. We analyze to what extent these alternative systems allow finance to constitute common goods, or 'commons'. To this end, we investigate the commoning practices through which resources are created, distributed and consumed in a way that promotes new collectives. We analyze the extent to which CCs can be considered as commons. Our findings suggest that, although these monetary services are privately used and consumed, they have strong collective attributes such as community-building as well as the insertion of solidarity and cooperative values in money. Finally, we inquire into the limits and ambiguities of these alternatives relative to the capitalist system. We analyze the extent to which CCs can be considered as commons. Our findings suggest that, although these monetary services are privately used and consumed, they have strong collective attributes such as community-building as well as the insertion of solidarity and cooperative values in money. Finally, we inquire into the limits and ambiguities of these alternatives relative to the capitalist system.

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Section: Palmas In Brazilmentioning

confidence: 99%

Section: Palmas In Brazilmentioning

confidence: 99%

Section: Complementary Currencies As Commonsmentioning

confidence: 99%

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Alternative organizations in finance: Commoning in complementary currencies

Meyer

Hudon

2017

Organization

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“…This consists of primary sources published by the institution itself (Melo, 2009;Melo & Magalhães, 2008. In parallel, we studied the academic literature on the Palmas system (França Filho & al, 2012), including national research published in Portuguese (Borges, 2010;Vasconcelos Freire, 2011). Our analysis is thus based on triangulating the data collected through direct observation, interviews and written documentation.…”

Section: Methodology and Datamentioning

confidence: 99%

“…The scientific literature on CDBs is quite limited, however, with the exception of some national publications (França Filho et al, 2012;Neiva & al., 2013). Commonly owned by community members, CDBs are self-governed and organize the management of financial services in accordance with rules and standards built collectively by the users themselves and their representatives.…”

Section: Introductionmentioning

confidence: 99%

Microfinance and common goods: A study of Brazilian community development banks

Hudon

Meyer

2014

AMPROC

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Inclusive financial sectors are essential in terms of poverty alleviation. While microcredit can be governed as a private good, self-managed civil society organizations propose an alternative way of managing financial services. Brazil's Community Development Banks (CDBs) are a growing and dynamic manifestations of these nonprofit organizations. Based on field research in Brazil, this article uses the Elinor Ostrom's design principles of successful self-governing common-pool resource institutions to analyze CDBs' microcredit system. Our results suggest that the characteristics of private goods could be reconsidered when they are governed by community self-managed enterprises. They become hybrid goods by mixing the characteristics of private and commons goods. Thus, specific institutional arrangements and the creation of public spaces make it possible to strengthen the community properties of nonprofit microcredit services and distances them from their characteristics of private goods. resource institutions to analyze CDBs' microcredit system. Our results suggest that the characteristics of private goods could be reconsidered when they are governed by community selfmanaged enterprises. They become hybrid goods by mixing the characteristics of private and commons goods. Thus, specific institutional arrangements and the creation of public spaces make it possible to strengthen the community properties of nonprofit microcredit services and distances them from their characteristics of private goods.

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Complementary currencies and entrepreneurship: Sustaining micro‐entrepreneurs in Kenyan informal settlements

Kuk,

Meyer,

Giamporcaro

2023

Strategic Entrepreneurship

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Research SummaryWith over a billion people inhabiting informal settlements worldwide, micro‐entrepreneurs are vital to local economies. Complementary currencies have emerged as tools to sustain these entrepreneurs, providing alternative trading and payment options. This study explores the daily strategies of micro‐entrepreneurs in Kenyan informal settlements using the digital complementary currency Sarafu. Our findings reveal that complementary currencies act as external enablers, transforming the local economies by enhancing payment systems, influencing supply and demand, and altering pricing structures. Significantly, when integrated with savings groups, they provide financial inclusion and collective purpose, strengthening local business networks. This research enriches our understanding of the mechanisms micro‐entrepreneurs deploy to leverage complementary currencies for growth, emphasizing the need for further exploration into the role of complementary currencies in supporting entrepreneurship.Managerial SummaryThis study explores how a complementary currency called Sarafu benefits micro‐entrepreneurs in Kenyan informal settlements. Sarafu acts as catalysts for entrepreneurship by boosting local markets and empowering community cooperation. Our findings reveal that micro‐entrepreneurs use Sarafu to adapt to the unique challenges of informal economies. They employ smart strategies like flexible pricing and inventory management to keep Sarafu flowing smoothly. Sarafu serves a dual purpose: a means of immediate spending and a tool for saving and growing capital. It also strengthens local business networks and creates a sense of collective purpose. For practitioners, this study suggests using complementary currencies to support local business networks, promote collective savings, and align the issuance of complementary currencies with local assets to foster sustainable entrepreneurship in informal economies.

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Solidarity finance through community development banks as a strategy for reshaping local economies: lessons from Banco Palmas

Cited by 27 publications

References 4 publications

Alternative organizations in finance: Commoning in complementary currencies

Alternative organizations in finance: Commoning in complementary currencies

Microfinance and common goods: A study of Brazilian community development banks

Complementary currencies and entrepreneurship: Sustaining micro‐entrepreneurs in Kenyan informal settlements

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