ISTR’S FOURTH INTERNATIONAL CONFERENCEDublin, July 2000

SOLIDARY POPULAR ECONOMY IN THIRD-SECTOR HORIZON

Luiz Inácio Gaiger1

In the last few years, the revival of economic practices sustained in associativism is an easily verifiable fact in Brazil and other nations. Either they signify a revitalization of solidarity traditions, whose characteristic trait have softened by the time, or the creation of a genuine and innovative form of solidarism, these enterprises have been deserving the attention of divers scholars, activists and social agents, among them, more precisely, the organizations associated to Third-Sector.

The role these organizations perform - or may perform in medium term - in solidary economic undertakings growth and conformation, is the theme under debate in this paper. To give the reflection its due concreteness, characterizing the empirical reality that serves it as starting point, the text initially synthesizes solidary economy main traces in Brazil, based on regional studies and, particularly, in a national ambit data survey2. Next, it describes solidary economy panorama in Rio Grande do Sul (RS), a region with some of the most consolidated experiences in the country and a reasonable interaction rate between new popular solidarism and Third-Sector organizations. Besides, it is the main focus of the surveys that sustain the considerations presented here3.

Next, this text studies some of the main solidary undertakings support organizations in RS, which actuation develop in methodological level, technical qualification, financing and formation. The organizations’ objectives, results, methodology, target group and influence rate are considered. We do not intend, with this, delineate Third-Sector conformation process in RS, neither determine the solidary economy importance nowadays, but do examine facts related to the arrival that organizations, qualified as of Third-Sector (although they rarely denominate themselves like this) have been brought to the increase of solidary work and rent generation practices.

1 Doctor in Sociology, teacher of Universidade Federal do Rio dos Sinos - UNISINOS (São Leopoldo, Brazil), linked to the Documentation and Research Center and to the Social Science Post Graduation Program (e-mail: gaiger@helios.unisinos.br) 2 It is a research set up under the auspices of Researches and Studies Inter University Net UNITRABALHO, under the author coordination, involving ten states and all Brazil’s big regions.3 These researches habe been realised during the last five years (vide Gaiger et al., 1999), elapsing of a partership among Universidade do Vale do Rio dos Sinos - UNISINOS, Cáritas Brasileira - Regional RS Production, Industry and Commerce Municipal Office of Porto Alegre. This text derives of this group work and have counted on the colaboration of Alberi Petersen (SMIC), Daniela de Oliveira (IC-UNISINOS), Fernando Lara (IC-CNPq), Marinês Besson (Cáritas-RS) e Raquel Kirsch (IC-FAPERGS).

Data analysis will let perceive, progressively, some rather general order aspects, such as rebounding impasses and tensions, typical of this field, not only in RS. Particularly, it will be evident the coexistence of two Third-Sector action models: one oriented to the multiplication of melting links between individuals and group, supported on a project and engagement mystic; the other one turned to association and promotion of reciprocal interests, founded in increasingly dense contractual links development. They are not incompatible and monolithic practice systems but underneath conceptual schemes, which preponderant tenor determines an action manner endowed of proper limits and benefits. Each of them, in its particular way, represents a tradition and work line that, although, in their general meaning, may flow together to the exercise of a solidary praxis, amalgam branch between Third-Sector organizations and popular solidarism.

This analysis line is justified, foremost, because solidary economy growth in Brazil is due, mostly, to an enormous and continuous action of those organizations. Abandoning a rule formerly restricted to philanthropy and assistance actions, they have gained notoriety when assumed a propelling function to new actors and new social choices4. These action have not been evaluated until here (to tell the truth, they have not been even reasonably described) and it is time for beginning to do it, even in an inconclusive way, at least to reach some propositions.

A second reason is that popular experiences communicate values sets and practices, equally shared by the organizations that support them and are constitutive of Third-Sector identity today: cooperation, confidence, gratuity, participation, human promotion, distributivism, ecological sustainment, etc. There are continuity lines, in a way that solidary undertakings and organizations could have be constituted by reciprocal relations; as in a mirror game, so they forged their identities, missions and social legitimacy. These relationships may intensify and popular solidarism promotion will be a Third-Sector natural vocation.

Deeper and decisive reason, although, is that the so acclaimed Third-Sector’s newness and innovator potential is justified only if it performs a innovator constructor role of development ways. This means to scape from the logic of the actors that have historically been occupied in development (that is to say, the other sectors) breaking the separation between economic life (Second Sector) and social life (First Sector) and suscitating protagonists that contain this possibility. Popular economic solidarism elapses, mostly, from contradictions and insufficiencies derived of State and Private initiative, marking an emancipatory arrangement desire of both historical entities. There is an origin kinship with Third-Sector, also structural correspondences that guarantee a common horizon hypothesis. Theoretically, these evidences suggest the convenience of distinguish and, at the same time, articulate Solidary Popular Economy and Third-Sector concepts.

4 In the dispute game between the competent discourses, Third Sector concept, although (or due to) it’s lack of clearness, have conferred a new visibility and detach to, now its, organizations.

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In this analysis context, Third-Sector actions produce still unlimited effects in favor of solidary undertakings, in spite of its pioneer action in divers fronts. These work lines ripening may turn them in a reference basis to extent actions, particularly the formulation of great abrangence ray and impact power public politics. Although with different nature and role, solidary undertakings and Third-Sector organizations, depending on their interactions, have the possibility of constituting a fundamental direction for a new practice beginning, conducting to a new vision of economy, society and State relations.

1 DEVELOPMENT OF SOLIDARY POPULAR ECONOMY

The presence of associational and self administrated experiences, oriented on participation and equity principles, is an indelible mark in Brazil’s social scenery (Cáritas, 1995; Silveira, 1995) This popular solidarism express itself in the ideas and practice of an increasing number of economic undertakings, made possible by workers oppressed for a lack of subsistence alternatives or moved by their convictions power. In these undertakings there are a combination between productive and social character activities, centered in mutual help and reciprocity values.

Behind this boom is the work market structural crisis, with the aggravation of a national retrieve politics, which have imposed fragmentation and social exclusion processes in the last two decades, with an unsuspected virulence and dramatic effects: an enormous contingent, jettisoned from work market and abandoned by recoiling social politics, found themselves compelled to create their own surviving and work opportunities. In another side, there is the positive mobilization action of social movements, unionized parcel and numberless citizen entities, resolute to promote mutual help and economic cooperation practices. Since a long time, in countryside and suburbs, thousands of small communitary initiatives, have been proliferated (Cáritas, 1995; Gaiger, 1996), coming upon them, in great part, the organizing and economic resolutions that are disseminating among more recent experiences today.

In a real diversity of forms, undertakings organize in various forms today, like informal associations or production groups, with a continuously familiar and communitary characteristic, or workers cooperatives and small and medium size business. In front-line, there are today self administrated business linked to ANTEAG5, service rendering6 and production cooperatives and hundreds of farmer and cattle raising groups and cooperatives, established in agrarian reform settlements, guided by MST7. Studies and estimations indicate a revitalization of old experiences, as rural production and consumption 5 National Workers Association of Self Administration and Shareholder Participation Business; in 1999 it congregated 52 business and 15.000 workers.6 A sector with one of the most expressive growth rate. Data from Cooperative Organizations of Brazil indicate that, in a general estimate, cooperatives number increased 43,7% in 90-98 period and 29,9% in the last four years. Among them, work cooperatives had an increment of 112%. To this it must be added an unknown number, probably greater, of non affiliated cooperatives.

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cooperatives, side by side with new segments expansion (work cooperatives) and with a group of local enterprises, in countryside and urban zones.

One remarkable fact is cooperativism renew in various economic sectors. Contraposing politic conservadorism and traditional business profile, new workers cooperatives have arisen in consumption, production, marketing and service rendering segments. Such enterprises have been engendered independent structures from official cooperative system, tightening its prevailing power relations. Engaged in this movement there are more important unionism sectors, intending to formulate propositions, stimulate authentic cooperatives development and struggle for the conquest or the route correction of disparate or fraudulent made cooperatives. This change of direction in unionism marks a new orientation in left side thought, at the same time that reassures, with a new language, worker’s movement historical values.

Another worthy innovation are micro credit institutions and another financing modalities for small formal or informal entrepreneurs. They work by short term loans, progressive and renewable, on the strength of solidary agreements or extra monetary guarantees. Such organisms are multiplying in Brazil, by the action of civil society, public power and, continuously, by partnerships with multi lateral organisms (Silveira, Amaral & Mello, 1997: CESE, 1998).8

In the last years, the multiplication of enterprises and protagonists is a common fact for the divers country regional realities. Adding to entities with a long time vocation in this performance field, new ONGs appear, arising social movements and institutions just aliens to this field, as universities and business foundations. We notice, hence, a wide range of entities and agents, which presence avoids the dual scheme State / private initiative and configures in Third-Sector own space. The proposals convergence and the agents interaction have been arranging the fortification of partnership and collaboration practice, forming progressively, a partnership culture. Formations nets, cooperative federations, exchange systems and diverse unions are organized among undertakings.

Following an international tendency, the interest on associative undertakings, as others organizations that integrate the so called solidary popular economy, grows perceptively in the country. By this term we name a phenomenon with the following characteristics:

a) They are economic alternatives where those individuals that ordinarily live from their work force selling9 gather and where those social categories put alongside of conventional State and market wealth generation and distribution take shelter. Such practices express a reapropriation of worker experience, reconverted by auto administration and socialization principles or, mostly, are anchored in popular sectors

7 Rural Workers Landless Movement, founded in 1985 and action capacity in whole national territory nowadays.8 Among the most known cases, are the Woman’s Bank Net, PROGER, CEAPE net and Portosol.9 In R. Antunes’ expression (1995) the “class that lives by its own work”

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familiar economy, of which they are an extension and where they find, foremost, their essence and functional aspect10. Setting against capital economy, where work and direct producers are separated, solidary popular economy would be en route of becoming a work economy, established in common property and reciprocity relations.

b) By these last characteristics, solidary popular economy does not embrace but a portion of popular economy, because of the coexistence of different values and the most divers arrangements - formal, informal, illegal - fated to assure survival. Besides, popular economy, being dictated by necessity logic, of generating consumer income, hardly cogitates to obtain some accumulation margin. Solidary undertakings, although, search to make of cooperation a lever to sustain its performance and to qualify them as contemporary economy agents. They concern about the efficiency and benefactions realizations for guaranteeing their financial feasibility. They yearn to exceed survival level and manage growth strategies.

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c) This popular economic practices are inserted in the wide solidary or alternative economy phenomenon, which encircles a multitude of social segments, agents and institutions (Laville, 1994; Razeto, 1997; Mance, 2000). Solidary economy aligns as a global critic movement to capitalist economic system, although of accentuated tendency to start concrete enterprises, directed at integral human development, namely: individual, social and ecological(Laraña, 1996). It includes cooperative banks, service and goods reciprocity, commerce nets and, above all, uncountable people associations, freely gathered to the objective of developing economic activities, creating work positions and experimenting solidary relations, in their midst and in society. Flowing together from different concrete situations whence they arise, where they base their private identities, such enterprises visualize a unity perspective in the horizon that motivates them to

10 To J. Coraggio (1997:36) is from its “domestic units, its nets and apparatus ad hoc” conjunct that may derive an economic subsystem, “relatively autonomous and autarchic, strategically oriented by its members enlarged reproduction”.

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collaboration practices and values infusion, such as justice, equity, autonomy and gratuitousness.

Their characteristics and determinant lines are not given, though, but they occur as possible ways. Understanding this arising reality involves, so, recognize its ambivalence and contradictions, and so, to question the concept itself.11 In the presence of the facts, it suggests rather an analysis angle, a reflection line, at the same time that it evokes a possibility, an historical management, whereby organizations, leaderships and the most vary agents clash.

Considering this, studies repeat to indicate indiciuns that, in determined circumstances, associative enterprises achieve in consolidate and reach a commutation level that habilitate them to an internal growth process (Tiriba, 1997; Gaiger et al., 1999). Assuming a proper economic rationality and planning their investments, they conciliate and mutually reinforce the work cooperation and rent. Benefiting of a greater stability, they assume the rule of work and rent generation agents with an economic effect, apart from contribute to the formation of groups and individuals with action capacity, in a multiplying bond process with a high irradiation power.

A decisive influence factor for the associative undertakings success is the adequate exploration of cooperative work possibilities. In this undertakings required rationality, in a way to superate the detached economic optimization x social gains, (or else, commutation x benefits socialization), productivity and efficiency have recourse of associated work dividends, of their capacity in aggregate extra rent factors, since turned on behalf of own producers (Gaiger, 1999b). The model character of this experiences, which are denominated as solidary economic undertakings (Gaiger, 1999 a) put them as background in the analysis about the arriving that Third-Sector Organizations bring or may offer to this field development.

Solidary economy in Rio Grande do Sul

Solidary economy characteristics, when focalized in a relatively circumscribed social space ambit, may be understood in the light of interactive circles that settle among divers acting agents in that universe. In Rio Grande do Sul case, was under different fomentation programs and agencies arising and evolution, that associational experiences have forming a proper feature segment explicative of its concerning trajectory and development possibilities. Without disregarding the spontaneous and germ stage character of many initiatives, it must be recognized that the formation of popular solidary economy in Rio Grande do Sul elapsed from this uncountable mediations and, accordingly, from the sometimes decisive influence of these external manifestations.12 For this reason, the former explicative logic, where have directly sketched the resulting schedule of uncountable action

11 For instance, we should not lose sight that its usual use recovers an initiative conjunct with distinct motivations, origins a natures, which do not contain, themselves, spontaneously confluent tendencies, which would overflow, by a natural approximation force, in a new social totality.

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work lines, will give place now to an upstream exam, where the show will permit to understand, in their effects, the solidary undertaking profile and power in Rio Grande do Sul13.

The cooperatives affiliated to official cooperative system14 form the more traditional and numerically significative segment in RS. Attesting their notable expansion in the last years, 261 new cooperatives have been registrated only in 1997. Comparing with the country, the State concentration is higher than the national average. Because of its formator cooperativist role in Rio Grande do Sul and its present diversity, this segments presents extremely heterogeneous nowadays, being unknown and controversy the quantity of cooperatives with authentic solidary characteristics15. In them we count 507 rent generation related cooperatives, with almost 750.000 affiliated. Among them, predominate farming and cattle raising, basic sector model until the eighties. Work cooperatives, though, have been jumping the gun in the last years, attracting excluded urban contingents, from market or informal economy, with new 282 registered cooperatives in 1998.

The oldest fomentation front to rent generation experiences, of associative and communitary character, started in the eighties, by Cáritas Brasileira, regional RS. Cáritas acts in all Rio Grande do Sul regions, have supported, in its 14 years of work, more than a thousand of small undertakings, trough credit, technical support and, above all, a methodology seeking to form a critical conscience, socially engaged. The vision that inspires Cáritas’ work is centered in social justice values and solidarity, having the fomentation of communitary projects as a way of improving life conditions and promoting the directs of those sectors put aside of society.

The so denominated PACs - Communitary Alternative Projects, comprehend divers activities sectors, from agricultural production to service rendering. Indirectly, they reach more than 40.000 people. Besides attenuate the lack of work opportunities, this communitary projects have as a goal to propitiate the experimentation of new economic practices, serving, so, as a basis for implementation of more wide-ranging alternatives. Along its work, Cáritas have coined concepts and methodological instruments with a large traffic in solidary economy field today. Furthermore, it inspired similar actions in other organizations, such as Mini Projects Fund, guided to social and communitary initiatives, specially those linked to pastoral environment.

In another area the Rural Workers Landless Movement, of long and vast implantation in Rio Grande do Sul, have been promoting the creation of collective

12 It is worthy to be aware of the social movements spontaneous tendency reading predominance, that does not know how much deliberated intentional acts there are background, occupied in producing an auto refutable discourse. 13 The approach will be necessarily brief. About associativism history in RS see J. Schneider (1994; 1999). For a more comprehensive and detailed vision of solidary popular economy in the region, see the work Sarria Icaza (2000), presented in this conference. 14 Cooperativist system in Brazil is composed by State Organizations and one Federal Organization, which is entrusted with, official and exclusively, the singular cooperatives representation.15 By this reason, I will not detach forward Third Sector organizations turned to this segment.

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production systems in rural settlements. Under coordination of Settlements Central Cooperative in RS, there were 17 farmer and cattle raising cooperatives in 1998, besides uncountable semi collective production groups and informal settled agriculturists unions, involving about 3.500 individuals. About the settlement organization process, there is registration of stimulant results in social, economic and educational plans (Vela, 1995), although serious difficulties persist because of material needs, technical unfitness and collectivist visions, banked by MST administration, questionable and sometimes not suitable with the facts (Navarro, 1995). Anyway, associativism, while adapts in a flexible way to each family and community reality, have been showing a secure way to assure the prosperity of settled agriculturists and small producers in general.

Still in rural space, it is proper to remind an associativism slope whose forgetfulness lets occult its possible meaning for solidary economy. It deals about the numberless small agricultural production support associations, disseminated in the whole state and registered, means EMATER16, united to Agriculture State Office. They comprehend, superficially, goods production socializing forms (machines joint ownership, divided structure storage, united shopping) or collective work (apiculture, swine culture). Although restrict to its finalities and acting spaces, besides not provided of expression and representation instances, this organizations, as it seems, have preserved the associative culture in Rio Grande do Sul countryside and, probably, are constituting alternative spaces to official structures, if not sustaining various solidary enterprises that appear more clearly in other segments17.

If Public Power action presents discontinued and pulverized in rural zone, in urban zones they concentrate in some municipal enterprises. In the capital of RS, Porto Alegre, Production, Industry and Commerce Office - SMIC develops fomentation actions to low rent groups in order that they organize in solidarity. Work lines are guided to urban garbage recycling associations and enterprising groups in handicraft, clothing and service rendering branches. Besides technical-management formation and intermmediation, in order to seek resources providing, municipal power offers an incubation period to some groups, where adequate installations serve to working and consolidation of new productive undertakings. The Selective Collection program, attached to recycling collective hangars, considered as municipal politics spearhead, involves 8 units today, benefiting about 250 associates. Similar programs were implanted in other municipal districts, performing about 45 undertakings and, also, have subsidized one of the work lines in implantation by present State government.

Solidary popular economy, in RS, expands and diversifies, acquiring a higher impact and composing a plural scene about conceptions, objectives and work methods. Besides public power and the already mentioned organizations, agencies, such as Maurício Sirotsky Sobrinho Foundation - FMSS, linked to RBS Communication Group act in this field. FMSS sustains rent generation projects since 1996, by financing, necessities diagnosis

16 Technical Support and Rural Extension Enterprise, Statepublic power organ.17 Divers mini projects financed by Cáritas have origin in agriculturists groups with this former experience. Visibly, this is the background that turns the MST collectivist proposals not so strange to settlers, although their basic reference is familiar agriculture.

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and assistance indication. Among financing requirements are the solidary character of the proposal, its social and communitary impact and its economic viability. In 1998, 29 projects received financing.

In small individual undertakings support segment, effectuated by mutual confidence and reciprocity practices introduction, emerges in RS the pioneer action of Small Undertakings Support Center - CEAPE Ana Terra. Founded in 1987, CEAPE makes its actions possible by partnerships with public institutions, benefaction foundations and diverse micro and small undertakings associations, besides searching resources in fomentation state banks18. It offers business formation courses, technical counseling and divers credit lines to small enterprises. In 1998, it celebrated 2.615 credit contracts and rendered courses and technical counseling for about 4.000 people. Soon, it intends to augment its services, trough attendance stations in RS countryside.

A reference initiative in credit area is Communitary Credit Institution Porto Alegre Solidarity - Portosol, inaugurated in 1996. Its clientele is formed by micro and small entrepreneurs from capital and metropolitan region municipal districts, as marketers, sewers, taxi drivers, restaurant owners, shoemakers, etc. Besides conventionally practiced avails it accepts as loan guarantee the participation in a solidary group, whose members contract equal values financing and are mutually considered responsible by individual debts. The operation volume reaches 200 monthly credits, with an average value of R$ 1.500,00. More than 70% of the clients renews credit, amplifying it in a progressive way; for qualifying they avoid overdue payments, much lower here than in conventional financier system. The distinctive bank feature, which assimilates it to internationally consecrated experiences, resides in the relationship with the clientele, personalized in communitary credit agent. He is responsible for reach the client, evaluate the business solvability, calculate the payment conditions and monitorate the financing activities, establishing a relationship based in transparency and confidence.

General state panorama revels multiform fomentation programs and undertakings set, incorporating differentiated adhesion grades to economic solidarism and possessing in their midst quite diverse connection levels. The constant arising of new groups and the prosecution expansion to entities and public organs show, symptomatically, an amplification in the contingent attracted by associative proposals. In despite of, judging from total amount, the share range of main programs and its social penetration in different segments is modest, being not provided, in some cases, by this point of view, of any reasonable social impact. Even so, it is important to recognize the high relative growth of this field, considering its global budding stage and its imperceptible or non defined presence few years ago.

Popular solidary economy in RS Is not configured as an integrated and systemic field. It is a motive of attention the non articulated and diffused state of most undertakings,

18 As partners, we detach SEBRAE-RS (Micro and Small Undertakings Brazilian Support Service) and SENAI-RS (Industry Support National Service); as riches font, Economic and Social Developing National Bank - BNDES, by its Popular Productive Credit.

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as the existing hiatus among various segments. Proposals proliferate searching to supply these gaps, but without being able to embrace the whole field, not only because of its multiple center character, but because of the lack of forces with sufficient agglutination power. It is hopeful that there will be a general concern nowadays, such as there will be a progressive convergence of proposals among intermediary institutions, putting in perspective the creation of wider partnership systems, interchange, support an qualification nets, such as exchange an popularization of methodological and operational solutions that each segment have incorporated to its patrimony

Making a general diagnosis, it would be appropriate to talk about social and economic increment format experimentation process and undertakings support and sustainment mechanisms. A modelar experiences age, which maturation, although, does not seem to go, at all, in a way of eliminating its singularities, resulting in an intellectually discontinued and plural web. It is in this context that we can estimate the strategical rule of Third-Sector organizations.

2 THIRD-SECTOR FOMENTATION PROGRAMS

For this evaluation, it is worthy to adopt the principles and work method of some programs. Considering them more slowly, in its peculiarities and trajectories, we will have a more precise notion of politics and actions history that, being associated to popular solidary economy today, constitute prisms and languages by which the field itself is interpreted and oriented. It will be important to perceive that this initiatives have developed, until this moment, by parallel ways: there were and there is contact between segments and its respective organizations, besides accurate cooperation, but there was and there are not an organic articulation and an effective group work. Each segment carries a proper experiences legate, as understood lessons that must be socialized for the projection of solidary popular economy as a multiple centered expression field and, however, dotted of confluent propelling lines. In this aspect, by the way, as we will study farther, solidary economy have the vocation to assume Third-Sector proper characteristics, such as enterprises plurality and horizontal articulation predominance.

From mentioned organizations and programs the following will be analyzed in more details: Cáritas-RS, Mini Projects Fund, CEAPE Ana Terra and Portosol. As we will see, either they constitute national reference cases, in its respective acting areas, or they are illustrative examples of very common work lines in the country. Even when their action does not happen directly on associative undertakings, they respond to the same population needs and they have similar finalities, what permits useful comparisons. Besides, they admit a service philosophy and solidarity promotion with different tones and worthily attention affinities. Finally, this various organizations acting suggests that the transformation of model experiences to wide range politics could not simply derive from the universalization of a single model, but conjugate different answers possibilities, for vary rights and citizenship demands, distinct and equally legitimate.

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Cáritas-RS

Cáritas Brasileira, by its regional section, began its support program for Alternative Communitary Programs in 198619. The program have been instituted as a way to give an evangelic and liberator answer to social segments alongside society. They have wished to deepen the Church commitment with the most disfavored people, estimulating beneficiary participation and initiative in a way that, slowly, the groups become autonomous and could develop by their own forces. They have wanted, hence, to break the assistencialism and adopt a new methodology, which could give to impoverished the chance of becoming their own liberation sujects. Projects should have a practical finality - of economic production or service rendering - and educational aspect, that could develop the communitary spirit and critical conscience. They should be alternatives, that is to say, they should contain new production, commercialize, education forms “generating a new relationship model between capital and work” (Cáritas-RS, 1993, p. 12). With the progressive enlargement of this action horizons the PACs would be, at the same time, signal and acting forces in a new society20

construction.

This line action have not been planted in an uniform way, neither without bring unexpected challenges. Besides the establishment of assistencialist culture, Cáritas’ agents have a distinct formation and variable material work conditions from one diocese to another. Higher diversity, however, is in the target group side, with their necessities and expectancies. Trough the parish and catholic communities net, Cáritas have been suscitating and following projects in urban and rural zones, mainly in the suburbs or small agricultural production regions. Until this moment, almost 700 PACs have been supported, with resources and counseling to uncountable activities kind: dwelling construction, health stations, handicraft and domestic industries, direct commerce, agricultural production, animal and bird breeding, production cooperatives, etc.

Perceiving the difficulty in assist so diverse public and necessities, Cáritas unfold its work in two fronts: social projects, for attend destitute people, and economic developing projects, for groups with better economic conditions and higher perspectives. The attendance of both begins with any counseling way of the group in question by diocese teams; it continues with a riches lawsuit project presentation21, which approval imposes mutual commitments and requires the work continuity by Cáritas Diocesana, besides of the

19 Cáritas is a citizen entity, assistencial and philanthropic, linked to CNBB trough its line 6 - Social Pastoral. Besides a Presidency and a National Secretariat, it disposes of Regional (or State) Sections and diocesan teams. Such teams, in RS, are implanted in all dioceses.20 A perspective shared by social movements studies, where, as Kowarik (1998, p. 323) reminds “the dominant interpretative posture was pushing them, hoping the appearance of an amalgam between various struggle forms and its transference to a situation where subaltern layers would have a higher presence in the alteration process of the politic regime that have accelerated during the eighties”.21 Approval criteria are different for both projects, it should be observed the diocese’s priorities (agro ecology, agro industry, etc.) It is required a material and financial counterpart. from beneficiaries and the devolution of a percentage of the conceded value (until 60% for social projects; from 60 to 100% for economic projects).

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presence of other collaborators and partner institutions. The project must assure the undertaking cooperative character, assure its viability and convince of its improving rule for the community and of popular organization advance.

Cáritas Regional acts by promoting formation and qualification meetings for the diocese agents and groups leaderships. It also produces subsidies for undertaking technical qualification (accounting, planning, etc.). Finally, it does an unique work of communitary group agglutination, by meetings, forum and collective market, at the same time that it reaches the articulation among agents, other Third-Sector organizations and public power organs.

In the last years, Cáritas tried to center its efforts in those more promising projects, considering its intrisecal characteristics and the attendance counseling structure that they dispose. It attempt to, further, canalize the aid to formerly organized groups, economically experimented and with possibilities of find technical support and connect relations with other entities and popular movements. Besides being alternatives, meaning different and innovator, because moved by solidarity and justice values, PACs should be alternatives because they are practicable, dotted of administration autonomy and auto sustaining mechanisms.

It remains, although, that his work answer to the most precarious social sectors, particularly in the suburbs. The Church, there, assumes the rule of purveyor, in front of the State’s absence or of its social politics inefficiency. To suscitate lasting solidarity forms and autonomy wishes, we count on the fact that, in those environments, mutual recognizement and interests convergence can only be fed on daily acquaintanceship, neighbor bonds, rooted cultures and life conditions partition. Among the degradated and anonymous urban scene and with more reason in rural environment, when used to familiar agriculturists of catholic tradition, Cáritas see in its communitary bonds the fertile soil for the solidarity development.

Cáritas have in its favor the secular experience of Catholic Church, this institution capacity to adopt a meridian position and a reception and dialogue attitude, at the same time that it preserves its autonomy and auto determination in front of quarrels that victimize the organizations indissoluble linked to the realization of particular interests. With this it have persevered in a proper personality actuation form, contrary to small caliber injunctions or to the pressure for immediate results, prodigal in alliances with other sectors from popular field, efficient in cart other supports to its work project.

At this, Cáritas constitutes in a pioneer agent and propelling force of popular solidary economy, occupying a reference rule today. From its contribution, it is worth to detach:

a) The conception of solidary economic undertakings itself, in its requirements (communitary insertion, objectives partition, social commitment) in its values (equity, justice, participation), functions (socialization, auto administration, democracy) and

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finalities (integral human development, ecological sustainment). This language is disseminated nowadays and, although it acquires proper nuances in other segments (such as auto administration business) it translates the heart of economic solidarism.

b) The vanguard rule, in the transition of a model turned only to momentary demands attendance to a model of continuous promotion and sustainment of economic experiences. One of the basic mechanisms effect was the progressive alteration in projects evaluation and in credit politics. Offering a closer preliminary counseling to the groups, gradually claiming a greater solidity and solvency in the proposals, respecting its culture and real payment conditions, the financial politics have quit the donation system and have adopted the subsidized credit form or, in some cases, integral refund22. This have imposed a continuity perspective to the financed and a concern with its feasibility.

c) A counseling methodology of entrepreneurs groups, adapted to a long term work, considering the credit support as an instrument to, among other things, an education and promotional action that unfolds in various fronts, pedagogically associated. One of its merits is in the feasibility study technology, where the motivating and relational aspects can be understood and compared with the economic and financial sustainment elements.

d) A capacity of stimulate and sustain the creation and multiplication of links between solidary undertakings and different solidarism agents. In despite of the general debility which the economical intercooperation still presents, Cáritas dawns in local experiences support and events promotion with the finality of institute, progressively, a solidary social net. Its action have been decisive to the realization of big state meetings, such as national and regional forums, markets and showrooms.

Cáritas’ action, of conjugate divers support forms, only gains it full sense in front of the transcendent objectives that guide it: form integrally, critical conscience, imbued of Christian values and deeply committed with social transformation. This project’s horizon, the group germination methodology and engagement and fusion in common cause, form the vertices that sustain Cáritas’ work.

Although, some questions appear, when we imagine the universalization of this model. In a practical level, Cáritas agents themselves perceive the impossibility of a multiple specialized counseling to offer safe responses to various kind of problems, besides guarantee the indispensable pedagogic support. Multiply the advisers schedule, maintaining the same counseling requirements, would inflate its structure, becoming it impracticable; provide external counseling, as it have been done, brings the risk of introduce conflict focus and jeopardize the pastoral methodology, cornerstone of this work, so much beloved by the agents.

22 After the evaluation of the proponents financial conditions, it is fixed a percentage value for amortization, between 1 and 100%. The riches devolution is parceled and it may assume various forms (cash, product-equivalence, etc.), composing a rotary fund, that banks 1/3 of new financing today.

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A second obstacle aggregates, about a possible mass production of the model, since it departs from a specific essence: the communitary bonds net, fattened among base catholic communities, where it establishes a constant group fusion. In this constant interaction environment, it is destiled a particular language, sticked to a determined vision of social reality and endowed of powerful effects, symbolic and practical. In despite of all comprehensive pedagogy an the actors’ intentness, the objective logic of the facts, in this segment, makes necessary be part of the people on the march to obtain the qualifications that become someone recognized in the intense traffic of popular solidarism. In other words, Cáritas work supposes the formation of a previous ideological identity in its beneficiaries, forged in a particular social insertion mode, a problematical fact to its work model generalization. How could it, in the absence of this communitarist activism, based on Catholicism, maintain its aptness and efficiency?

The Mini Projects Fund

The Mini Projects Fund is a program administrated by ONGs since 1992, searching to give support to popular movements and social pastoral. It supports small base groups, popular organizations, pastoral activities and movements and articulation entities enterprises. The fomentation lines include economic production (in a sustainable and ecological development conception), popular education, organizing activities and civil or minority defense actions. The economic projects execute 50% of Fund’s portfolio, and, in 1998, a total of 101 proposals have been financiated.

The Fund’s creation have elapsed of a discussion among various ONGs and financing international agencies, besides social movements and pastoral of the three Brazil south states. In 1992, it initiated its acting, only in RS. In 1994 it expanded to the whole South region, with the participation of ONGs in Santa Catarina and Paraná, and with the support of new international agencies. The program general coordination belongs to CECA, an ecumenical entity with acting in social pastoral and base movements23. From the Fund’s administration, in RS, CAMP, a non governmental organization to popular movements, particularly urban trade union struggles, participates equally24.

The Mini Projects Fund offers small financing, interest free, for equipment purchasing, structure and activities financing. The demands come from divers regions, to be analyzed by an assembly formed by administrator entities, delegates popular pastoral and social movements. The projects selection evaluates the innovator character of the proposals, its education dimension and solidary and democratic spirit which stimulate them, besides it objectives clearness and the group administrative capacity. Furthermore, it is considered the

23 CECA- Evangelizing, Qualification and Counseling Ecumenical Center was founded more than twenty years ago. It is a confessional ONG, one of the most know and one of the oldest in RS, reminiscent of the big Church going to popular basis, elapsed in de seventies and eighties under the patronage of Liberation Theology. 24 CAMP- Multi Professional Counseling Center, was born in the eighties, at the time that arisen uncountable counseling ONGs to social movements, of a clearly politic orientation and clear alignment with left politic parties.

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number of beneficiaries, the multiplying projects effect and, as a general delimitation evaluation, its contribution to pastoral and social movements fortification. The Fund is managed, so, as an instrument serving higher causes and objectives, as a topical support for activities that are understood of being inserted in a wide and progressive social transformation process.

By this reason, as by the program pulverization, of geographic and institutional point of view, does not exist a following process of beneficiary groups. Once the selection is made, there is an appointment for the resources repass to the different groups and for elucidation about program principles and operational aspects. A second meeting, in the end of each year, serves to the written report delivering and to a formation moment, where the results reached by the groups and other common interests themes are discussed.

The Fund’s repercussion on economic solidarism experiences is modest, as its impact on movmentalist pastoral web is weak (Doimo, 1995: 59) that intends to become dynamic. Although, it awakes interests because of some characteristics and for being illustrative of a very usual work formula among ONGs and international agencies25 (CESE, 1997). Besides, its working crystallizes some of the problems already mentioned, about Cáritas’ work, since it follows the same model, with maybe brighter colors.

The program finality is to suscitate the base groups effervescence and reinforce its engagement by all exploited and oppressed cause. Without the mystic of the struggle for a new society, the projects fomentation would be lacking of its major sense and would be probably considered innocuous. The key that pedagogically establishes the connection among this common horizon and the beneficiaries particular necessities consists in solidary transference, by which the whole assisted group assumes the commitment of repass to the community a parcel of what they have received, under monetary form or service rendering. Solidarity, among other values, is promoted as a main beam of a big social construction.

Nevertheless, a performance Fund evaluation by the administrators verified being unknown, by many beneficiary groups, the major program proposal, of sustain an “alternative development project”. It was concluded that he major deficiency was in the weak group counseling, what would also assure a better resources employment. Do it, however, would implicate in a big onus to program structure, reducing the direct expense with financing and bringing the dilemma of maintaining the fomentation level, or reduce them in favor of a more efficient work.

The problem suggests, at first, evaluate with prudence the exigency weight imposed to the fomentation actions that render service in various fronts, according to its necessity of using efficiently various instruments and being, hence, multiple specialized. It suggests, furthermore, wonder about the rule of support organizations which institutional limitations should be impelled to stipulate goals for its intervention. The “alternative project” notion,

25 The oldest and most known example is de CERIS Mini Projects Support Fund (Social Investigation and Religious Statistic Center). Reaching the whole country, it financed more than 900 projects in 1979-89 period, with analogous criteria to RS program.

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because of its concentrated ideological charge, of imprecise contours but in the antagonic sense of what there is, maybe turn the task difficult, because it removes alliances out of this specter and impedes the visualizations of extent actions, for which the other actors cooperation is indispensable, including those in some way participant of the present establishment. Besides, when it is fastened an imaginary horizon, in the absence of programmable goals and efficiency indicatives, the attempted actions validation tends to be a common rule, since everything, in any way, contributes to the major cause and can not be inhibited by pragmatic argument sieve.26

Another question that must be done is about the internal factors involved in the engagement model, very clear in Mini Projects Fund. Besides the mentioned selection criteria, the groups must be pre qualified, by means of the recommendation of people and entities with flow in the pastoral environment and in the movements. Without this references, the support is hardly obtained. It is equivalent to say that the aimed group is pre determined, although it is intended to act, in a last instance, in the name of universal conquests. If this does not cause species to the Fund administration, because it does not affect the congruence between the ways and means that presents, the question acquires other contours when it is thought as a general support principle to solidary undertakings, when there is a certain chance of does not exist those presupposed. Does not the political project, which rocking the movementalist actions, necessarily end in reducing the abrangence ray of these nature programs and dismiss other individuals, considering the legitimization game that it imposes? In a last analysis, would not it ignoring that the popular pastoral movement represents a social universe parcel and that, in despite of its moving language, it is infested of interssecioned internal entities, struggling in their midst by the legitimate representation and the power recourses produced there?

The CEAPE Ana Terra

The Small Undertakings Support Center - CEAPE Ana Terra, founded in 1987, is a rendering service organization, of private right and with no lucrative ends. Since its beginning, it have counted on multiple lateral organisms support, such as UNICEF, enterprises associations and State organs. Its history begins in 1986, with a support pilot project for women groups from Porto Alegre’s boroughs. As main obstacles for the sustainment of those low rent families, were diagnosed the lack of turnover capital and administrative qualification. It was verified, also, that trough the woman, the resources reach the family integrally and quickly. CEAPE Ana Terra was born as a pioneer micro credit concession institution, have been the first unity of CEAPE net, with thirteen centers in the country nowadays.

26 Although the conviction of it is really necessary to evaluate the results objectively has growth among the Mini Projects Fund administrator, this concern seems to be reluctantly incorporated - as an imposition of the financing agencies – by a big number of ONGs, which acting mode was based on long term objectives and the interest free resources disponibility. Here there is a tension point with other Third Sector organizations, of which we will have examples further.

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The Center’s mission is the improvement of the small entrepreneurs life quality, by credit establishment and business technical-administrative formation. The service is considered as a way of combating poverty, by the creation or consolidation of work stations in low rent layers and, equally, by its indirect effects, as the decrease in scholar abandon, women valorization and citizenship promotion. Its major clientele is composed of familiar, entrepreneurs jettisoned from conventional financier system, due to their business precariousness and to the lack of real guarantees. The intention is not transform them in big entrepreneurs, but become their undertakings viable and valorize their work. CEAPE have quit of attending only female clientele and have reached to liquidate all paternalist posture, eliminating the loans by subsided interest and the gratuity offer of courses and services.

For the credit concession, CEAPE avails of a Rotary Fund and uses the Oriented Credit methodology, an union of financing with counseling and productive and administrative qualification of the debtors. The granted credit for working capital have a 180 day delay, renewable, generally with increasing values, while those reserved for fittings improvement and equipment purchasing can be parceled in twelve months27. A process peculiarity is the Credit Technician role, who is responsible for approaching to the client, study the business viability and necessities and offer a line of credit opening. For this, is essential to the technician establish a confidence and transparency relationship, maintaining a permanent contact with its clientele, concentrated in some city zone.28 The resources are liberated in ten days, existing also an ultra fast credit option for the portfolio clients. The value given to the good relationship with the client extends to the debts collection.29

Comprehending many levels before the judicial appeal, it reaches to conserve the client and counts on negotiation mechanisms, when real difficulties are verified. In none hypothesis the doubt is amnestied.

A loan modality introduced in Brazil by CEAPE Ana Terra is the Solidary Warranty: people with small business and credit need associate in confidence and mutually cosign their credits. The process naturally selects the good debtors and increment personal bonds and communitary practices. The successive credit offer aggregates a powerful stimulus to the business and give to the financial support a formative pedagogical character30. The option responds by an important piece of Ana Terra Center portfolio: in a total of 11.724 financed undertakings until 1998, 3.787 were destined to Solidary Groups.

The undertaking counseling is rendered by programs that offer to the clients techniques and solutions for the improving of productive and administrative processes in it economic activity. For this, CEAPE uses CEFE methodology - Economic Competence by Entrepreneurs Formation, based in games and group dynamics searching to solve problems. The method tries to utilize and valorize the life experience of the group in the

27 Loans while oscillate between R$ 200,00 and R$ 8.000,00; average is R$ 1.500,00.28 Each technician can have a wallet with until 300 clients, that can be increased while the portfolio’s medium delay enlarges. Clients number and its development rate are accounted by the Center personal politics.29 The overdue payment rate is 5%, considered high for the micro credit segment. A recent modification in the collection politics was the substitution of third party services by a Client Relationship Service. 30 In 1998, more than 90% of the clients returned to take loans.

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apprenticeship. The courses are ministered by SEBRAE counselors, in CEAPE-RS seat and in its divers attendance stations. In the Center evaluation, the results are extremely satisfactory, because they have succeed in develop entrepreneurs characteristics in its clients behavior. Searching the personal formation, in another side, the Centers National Federation - FENAPE offers continually methodology qualification programs, administration and programs related to the net philosophy and to the clientele profile, such as gender relations and adult education.

A new line of Oriented Credit with certain unprecedentedly, among this sector institutions, consists in qualify and give financial support to small entrepreneurs begin their business31. After attending a business creation basic course, clients are prepared to strive for the credit, through an enterprise viability project; after, they count on CEAPE counseling in their first steps.

Among the congenerous institutions, the CEAPE model shows to have a significant range of action and to generate multiplying effects, once the Center’s net is progressively increasing and, at the same time, they inspire similar organizations. In 1997, the net reached more than 34.232 persons, versus 23.943 in the preceding year. In 1998, this total augmented to 44.530. The number of granted credit has also increased, from 17.677 to 44.105, in 96-98 period. CEAPE Ana Terra presents a similar evolution: in twelve years of activity it have supported the creation or the consolidation of 16.450 work stations, 4.018 of them only in 1998.

CEAPE net accomplishes, hence, an undeniable social function, since it attends a market passed over segment and valorizes persons reaching by their economic and social autonomy. Under the paternalism risks, CEAPE defends a independence inducing methodology, by a friendly relationship with the client and a professional service offer. This actuation mode is also characterized by its specialty in conjugate the credit and the qualification, two incontrovertible fundamental needs of small entrepreneurs. In RS particular case, this work line has developed a vanguard role, so in its general proposals as in specific technologies introduction, such as personalized attendance, adapted to each client’s conditions, and the Solidary Groups financing. One of this long experience most important results is its demonstrative effect: investing in small entrepreneurs is a economic viable alternative, besides of being an imperative in any developing proposal endowed of a minimum social rationality32.

A question that could be easily formulated deals about the undertaking vision characteristics that CEAPE net serves as a medium and reaches to insert in its clientele. Clearly, the business enterprising and administrative techniques requirements, although ethically imbued of attention and fundamental human values, are despoiled of any critical meaning about the market logic and the capitalist accumulation imperatives that governs it. It is intended to insert new economic actors in the market, equipping them with the same

31 The others existing credit offers, including in the Third Sector organizations examined here, demanding previous business experience, usually six months. 32 CEAPE Ana Terra has received more than one prix for its acting, enjoying of national recognition

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guns of the others competitors. In another side, it is worthy to ask if, furthermore, the stress in the business exit does not fade another social relations components and the citizenship sense, getting rid of a holistic and integrative vision of human life.

A second problem refers to the fact that this model works to potentially enterprising individuals, without focusing the existence or the chance of crate associative lasting links and, more extensively, bring to the first plan the communitary bonds that eventually involve their clients. Solidarism, no doubt, is cultivated as a general value, linked to the mission and the relationship methodology with the clientele, being, although, subordinated to the undertakings’ individual ends. Even in the Solidary Groups case, where is usual the renovation of confidence pacts for new loans, it is demanded that the reciprocal cosigner’s agreement be firmed among entrepreneurs with independent business, each of them following, initially, its own way33. Only by the circumstances power other actions are promoted by solidarism, with some balance in collective mobilization and organization.

CEAPE action is not oriented by a globally critical accosting of economic system neither is turned to social character enterprises . So it is far from movementalist environment, typical of the engagement model and endowed, furthermore, of a historical transcendence perspective. CEAPE attends demands, always when they fit in its action program, abstracting any other creed mark and social insertion of its clients, that become individuals of increasing contractual relations. As it acting mode has originated and growth by constant with the undertaking entities web, including its Third-Sector organizations, it is enticing to interpret it as a simple emanation of a class vision, serving to it hegemony desire. Although, the examination of Portosol work line, a micro credit organization idealized by a anti bourgeois character govern breaks this dual scheme and lets arise deep tensions, when is intended to construct ways of solidarism promotion as an universal citizenship support.

Portosol

Portosol objectives and operation system have been briefly described in section 2; in its general lines, it is similar to other institutions specialized in micro credit (Silveira, Amaral e Mello, 1997). The clientele is composed of small entrepreneurs from metropolitan Porto Alegre region, whose patrimony is inferior to R$ 50.000,00 and that do not employ more than ten persons by turns. It is necessary to be in the business for at least six months, with no juridical formalization and since it is not an essentially rural activity. As in other similar institutions, support is given based on the evaluation of volant credit agents, according to a direct relationship method that reaches objective data survey and, at the same time, create a confidence and transparency atmosphere. In a similar way, the doubts collection follows a pedagogical way, with the intention of educate the client qualifying him/her to future loans, that may consolidate his/her undertaking34.

33 It must be noticed that the default rate of Solidary Groups is higher than the individuals.34 From the solicitations recommended by credit agents, only 6% does not receive financing. The default superior to 30 days corresponds to 3% of the active wallet, a rate considered positive to the sector.

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Work premises are valorize beneficiaries proper initiative and autonomy, operate with efficiency and establish lasting links with the clientele. For this, the service must work with agility, flexibility and a minimum bureaucracy. In the three first operation years, were granted more than 7.000 credits. Besides the personalized attendance, a decisive Portosol triumph is the acceptance of guarantee distinct modalities to granted loans: warrantor or cosigner, dominion reserve of purchasing or alienated riches, the solidary cosigner’s agreement, in CEAPE similar pattern and also mixed forms35.

Portosol was conceived after a meticulous study of other congener initiatives (Voigt, 1996), with the objective of incorporate the best solutions, already proved, of small entrepreneurs fomentation. The institution major peculiarity is, although, its origin: it was imagined by Porto Alegre Municipal public power possessing, despite, a juridical personality and an administrative structure independent from state sphere36.It was the State, hence, through consultation and partnerships with divers society segments, that have generated this Third-Sector Organization. The fact represented, at that time, the expression of a uncommon government political since in the country: configure a non State public sphere, with strategic economic function for the local development, tightly linked to public power priorities. This origin explains three Portosol characteristics:

First, the arriving capital of Portosol, proceeding from public power, multiple lateral agencies and organisms, impose its preservation and progressive increment. Being an autonomous institution, deprived of current budget resources, and having as objective assure the viability of micro enterprises investing, the support to them was conceived under premise of protecting the institution financial auto sufficiency. The non existence of transferable interest free resources for the credit obligates to account, in financing taxes, all its operational cost. The credit attractive depends on the institution operational efficiency37. On of the consequences is the decisive role that the business viability study develops and the offer, flexible, but realist, of credit options fitted to the debtor. The credit evaluation method and relationship with the client is an important Portosol patrimony, by it became a crowded technology repass font to other institutions.

Second, Portosol has the commitment of seal an action directive with impact power, by a high specialized technology, so it opted by build its first financing lines, and after enlarges its acting aim. The necessity of assure the credit return, particularly, inhibited the openness of financing lines that comprehend higher risks or demand specific instruments. Due to this, Portosol, until recently got rid of the financing for beginning economic activities and postpone for a second stage the Associative Credit, reserved to cooperatives and production groups. In its four years of existence, as CEAPE, the support to individual

35 In the first working year, have not occurred overdue payments higher than 30 days to financed clients based on solidary guarantees. This financing area corresponded to a little more than 10% of the institution credit wallet, tending to increase in the following years. 36 Porto Alegre Municipal public power, since 1988, is governed by a left group, leaded by the Workers’ Party (PT). Portosol was created during the second petista administration. In the next election, in 2000, there are great chances that PT will be elected to its fourth mandate.37 Credit tax oscillates according to the balance point between financing volume and the agency fixed costs structure. On the other hand, there is no additional taxes, a common practice in the sector.

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undertakings predominated, even in the Solidary Groups case, where the financed business are independent.

The fact of have begun, recently, the support to collective undertakings38 does not change a deep characteristic of this work model: the conjoined clients mobilization and the creation of lasting partnerships, perhaps with extra economic motivations, can only come from the individual interests confluence, depending in their reciprocity. In other words, solidarism appears as a possible origination of the auto determination of individuals moved by their own interests, not as a requirement to its realization or as a dimension of them. There is no impeachment to an organized demand, integrated to the movementist circuit, but the fact is, irrelevant . It is followed the principle of do not intend to modify individuals and groups to give them resources. To Portosol, respect the auto determination of those who gather it, promote them as citizens, differently of the engagement model, consists in respond to all pertinent demand of its institutional mission, abstracting all the other individuals qualifications, including their adhesion grade to the continuous solidary practices exercise. These are referred to the contractual link, realization guarantee of mutual interests and not to a collective mobilization process. According to their conception, shared with CEAPE, the public character of a service is accomplished while it is able to universalize.

Third, as Portosol was conceived as a part of a public politics conjunct, integrating various projects, it was given to it a decisive role of acting with micro credit. When accomplishing this mission, translated in mechanisms that combine pragmatism and invention, it would be serving to na alternative developing model. Qualification and another functions would be guaranteed by a programs net, which would be responsible for, specially, prepare the popular demand to public riches access. Portosol innovator character and the fear of, when exercising various roles, the corresponding criteria and performances would struggle, have additionally fortified this conviction39.The micro credit mystification hypothesis, as a propelling instrument for popular economy, does not seem to be sustained. In Portosol case, credit have sense from specialized institutions articulation strategy, integrated to State system or, preferentially, autonomous of State sphere.

Curiously, hence, Portosol structure and fund have shown inactive capacity, being visible the apathy of divers State apparatus that could canalize the wide not attended social demand. The same register serves to the citizen organizations acting attached to popular sectors, the same that have conducted to power the political front at the head of government na which represents its movmentist sustainment base. What seems to explain this situation, that obviously reduces the micro credit impact on popular undertakings, is not the Portosol incapacity of inserting in a wide fomentation action. The fact is due, first, to the discontinuity in Portosol complementary developing politics implementation, elapsing of this, basically, from divergence and disputes, in government heart, about the State role and 38 Meanwhile, only two economic associations, formed by horticulture products marketers, has received financing. 39 The question posed to Portosol administration was the following: how claim the contracts accomplish, being the institution, at the same time, involved in the formation of another human and material factors indispensable to the undertaking viabilization and, consequently, acting simultaneously as creditor and warrantor?

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the relations character that must be promoted with the non State sphere. In this context, such politics increment have been subordinated to sector visions and interests, in State system.

In spite of these facts, there are convincing signals that Portosol credit offer, for associative groups, could be in an advanced stage, establishing a riches flow of extreme importance to solidary economic undertakings. About the groups qualification and formation method, Third-Sector organizations that act in this area demonstrate experience and adequate solutions. An incisive politics, with this characteristics, would bring the fair recognition to the pioneer character and to the accumulated patrimony of one and others. In what concerns to Portosol, it would assure, in a bruising form, the solidary character of this its institutional mission and the doubtless value of the riches democratization and the economic agents formation in low rent layers.

3 THE NECESSARY PUBLIC SPACE CONSTRUCTION

The problem is avoid that the anxiety in universalize private collective identities conduct its bearers to reduce the public sphere universalist aim to its subjective and internal values and criteria, morally excluding other fields and individuals (Cf. Doimo, 1995:182)

“ What we know is that the revolutionary dream about the society big transformation cede field to the engineering of the interests representation system, searching for a major social integration possibilities openness by the enlargement of the citizenship rights.”(Idem, p.218)

Brazil goes by a favorable moment to these initiatives. It depends, in a great part, on the capacity of unite efforts and clip the focus differences, among the solidarism support and popular enterprising modalities, the chances of each solidary popular economy program and segment are small. The experiences summoned described show the permanence of a duty “make the articulation culture that have been forming, still in a diffuse form, more concrete and effective, what means to construct a politics and institutional intervention field that consolidates a solidary and popular economy platform” (Silveira, Amaral & Mello, 1997:90)

In the next years action agenda, one of the main items is implant extent programs, of proved impact power, local and regional. Actions, hence, that influence the labor cost occupation rate, rent distribution and life quality40. This supposes make flow together the progressing initiatives, absorbing its better solutions and potencializing them in an strategy ambit guided to large population contingents. Briefly, it means to develop from local

40 Usually, the checking of the results produced by the programs is limited to account the number of beneficiaries of the contracts realized and estimate some indirect effects (Cf. CESE, 1997: 93). In the last years, the preoccupation of realizing impact studies have increased. Such studies were made by some CEAPE net centers and are under planning in Portosol and Mini Projects Fund.

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exemplary experiences to mass programs. This task, considering the historical conditions that represent it, is destined to prosper according to the exploration of the possibilities of solidary popular economy and Third-Sector. Its success depends on the consolidation of both fields, of its respective identities and its reciprocal links. Our final consideration reach to demarcate these thesis.

It is useful begin by a conceptual elucidation. The expression Third-Sector, far from being an unmistakable concept, is employed to mention a few clear borders phenomenon, detaching what would be its basic characteristics and, by an hypothesis, its structuring lines. As the scholars recognize (Mellor, 1991; Fischer & Falconer, 1998: Lisboa, 1999), it involves the most diverse organizations and initiatives, with different social origins and links, sometimes with ambiguous or hardly conciliating interests. despite its heterogeneous appearance, it is favorable to vary meanings and interpretations, the Third-Sector notion would be expressing some general contemporary society tendencies, which major effect is the formation of a new and wide practice field, a third polo, distinct of private sector, with profit intention, and of State (Fernandes, 1994). This field, in a big growth today, would congregate the organizations endowed of, at least, the following characteristics: a) they do not make par of the State system, being, hence, non governmental; b) they are auto administrated, possessing a large institutional autonomy margin; c) they involve volunteers, in any of its activities level; d) they do not have profit finalities, being moved by benefactor and acting in behalf of public interests cause.41

This definition, certainly, includes solidary popular economy fomentation organizations described before, also pointing out, that the studies cases correspond, in Brazil, to the general profile of the entities that act in this field. But it does not include, in our opinion, the solidary economy as it is, because it is established, primary, in a productive undertaking conjunct that reaches objectives to themselves, among them the economic benefaction. Because of its finalities in serving to the members of a community, giving primacy to the persons, such undertakings respond to social necessities and accomplish a common interest function. They do not do it, although, in a philanthropic basis, but with the decisive investment, in work, of those who find a surviving alternative in them. To meet with success in innovator economic practices establishment, out of profit logic and capitalist accumulation, solidary economy, in its apparatus net, is not dispensed of acting in market and generating excess.42

Refuting a current habit, of classify everything in Third-Sector43, the facts examined until here conduct to visualize solidary popular economy as a proper contours and characteristics phenomenon, intersessioned with those of Third-Sector:

41 I thank Domingos Armani (UNISINOS) for the indications to this synthesis. 42 What does not mean to obtain capitalist profit, if we restrict it, in politics economy expressions, to the surplus value extraction and private accumulation. 43 A habit initiated in Brazil, probably, by R. Fernandes’ work (1994). The proper attempt of remake this sector history, projecting it on other ages realities, highly different, only shows that, between State and Private Sector there always have numberless social lives forms, despoiled of any historical and, accordingly, conceptual unity. Still today, for the major part of the named Third Sector organizations, this classification seems strange.

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a) First, popular economy is a preferential intervention field of Third-Sector organizations, particularly of its social economic projects. In Brazil, as we have already studied, the present economic solidarism boom elapses, in great part, of the persistence work of institutions and agencies alongside State and with no relation with market.

b) Solidary undertaking, in its place, tend to create or consolidate numberless mediation and representation instances, such as associative unions, cooperative federations, interchange nets and support and fomentation organizations. It is worthy to remember, for example, ANTEAG- National Workers Association of Self Administration and Shareholder Participation Business and ADS - Solidary Development Agency, created recently by unionism initiative. Solidary economy expands and multiplies Third-Sector organization.

c) Associative undertakings, turned to rent and work generation, as a rule, accomplish a sequence of functions, in health, education, communitary insertion, minorities defense, environmental preservation, etc. They act, hence, in analogous way to Third-Sector organizations. Solidary economy competes with private sector in work stations creation, and in social services offer with the State. Furthermore, it rejects the separation between economic and social, conciliates cooperation and work efficiency and establishes the foundations to a solidary socioeconomy: “a economy turned to the social, which basis is the conscience that we are all interconnected and, so, we must do of our interpersonal, commercial, productive and social relations something that result in benefaction, welfare and happiness for both parts.” (Arruda, 1998:13).

SolidaryEconomy

Third-SectorSocial

EconomicProjects

Picture 2

d) Solidary economy shares with Third-Sector, or at least with a great part of its organizations, a conjunct of values and practices: in one side, values as altruism, individualism and competition rejection, human rights, social justice, etc. In another side, proximity practices, confidence, concrete local insertion, mutual aid, citizenship defense,

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among others. There is a deep affinity, that makes possible the organic integration between the fields.

e) This possibility is equally sustained, and in a decisive way, in the deep similarity between its respective structures and working logic. So Third-Sector organizations as solidary economy realizations excel by their autonomy and for establishing horizontal connections - and not pyramidal Their acting is not centered, forming a plural field where biggest affinities generate tighter articulations and those, new identities, in a continuous melting and constructive process. In this point of view, they form an aside reality, endowed of structural and systemic similarities, such as communicating vessels that distinguish them from First and Second Sector.

So, it is worth to say, Third-Sector and solidary economy assume the same polarity, in the interior of a triangular historical configuration. About this, there is a convergence point among scholars, in rejecting the dichotomy State x market, or public x private. Coraggio (1977) distinguishes three economic subsystems: entrepreneur, public and popular economy; Franco (1996) describes three spheres, in social arrangement: market, State and civil society; Nyssens (1996) proposes the visualization of three polos: capitalist, public and relational. The consensus is in the three last element characterization: relational polo, civil society and popular economy constitute initiatives conjuncts and associative life processes, where predominate human factors and reciprocity relations, guided by a non State and non mercantile rationality. In the same way, this third vertex is seen as a synergy font of the society living forces, which dynamism redefines the other polos roles and opens new ways to the society.

This models and projections (Picture 3), being theoretic, serve to give understanding to accentuated discontinued processes. In Brazil’s economy solidary case, particularly in Rio Grande do Sul, advance in this direction requires the equation of at least some questions:

First deals about the social place where solidary economy agents and dynamic forces must concentrate. To some ones, it is the State that must accomplish this role, calling to it the organizations aligned with its strategic vision and its action program. Naturally, in this conception, there is no place to entities as Portosol; the articulations choices depends on the functionality grade - in the limit, of subservience - identified in the other partners. Alternatively, the gravity center can be placed on non State public sphere, endowing it of mechanisms capable of attracting divers actors, from different nuances, whose interaction results in long term commitments with development programs and directives. This vision, predominating in Porto Alegre municipal government, leading up to Portosol creation.

Solidary economy features, specially in its plural vocation and multiple centric conformation, as its bonds with Third-Sector, defend decisively in second hypothesis favor. An argument could be still adduced: in Brazil, is necessary to recuperate the specific functions and the politic institutional sphere prerogatives, in certain way reverting the excessive public life politicization. Namely, State is naturally a dispute field, a politic

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dispute object, which momentary resolution is shaped in government’s programs. To the political interests raised to the State system command, by the democratic representation mechanisms, due to act legitimately on all sectors. Although, it is exercised, besides, the processes conduction, counting on the State purveyor capacity,44 they end for subdue public politics, as civil society respective organizations, to the game of government politics, know by its instability, instability and discontinuity. Better if victorious party programs valorize the solidary popular economy, since they do not take the way of becoming it epicenter, but searching to feed a dynamic fluxes system, necessarily inter departmental.

This understanding helps to accept each solidary economy segment, with its respective fomentation programs, as ways to attend specific situations. Walking to more inclusive actions does not mean invalidate this differences, but introduce connection ways and new services, which formation and experimentation support a progressive scale change. So, it is secondary if organizations act in various fronts or if they dedicate to only one service. It fit to the system supply all needs; it fits to each organization, according to its institutional peculiarities, establish proper lines, trying to guide them to a high demonstrative power actions, able to mobilize expressive public resources, for guarantee its multiplication and continuity.

Third-Sector

StateSector

PrivateSector

SolidaryPopularEconomy

Picture 3

44 It must not be forgotten that State is the main Third Sector financier, by its direct, by fiscal renounce and other mechanisms allowed to private enterprises, since they canalize resources to social programs. In Brazil, unionist associations and ONGs are occupying the space of other institutions that traditionally promote professional formation courses with State resources. In RS, the piece that fit to them of Worker Aid Fund, main budget font to this finality, have increased from 15 to 50%, only between 1997 and 1999. It is not exaggeration affirm that social organizations are a State sector subproduct, or they institutionalize in a strait dependence on it.

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This perspective obligates, although, to visualize solidary economy beyond the experiences particularities that, until this moment, made it a concrete reality. Public space can not be a simple extension of organized groups our powerful sectors, or it would be condemned to reproduce selective distribution mechanisms of public goods, destitute of universal rules and effectively democratic principles. In this logic, since there is no regulatory criteria, as Doimo stresses “what counts is this: those who are more organized and make more pressure are the ones who gain public funds pieces”(1995: 60). If politics and institutional sphere is dispute field of ideological visions and interests, it will always be tragic the vision that, sustaining in State system or enjoying of a privilege position, public sphere is a simple extension of interest groups.

In reality, it is to restrain an auto projection spontaneous tendency, by social reality, in its totality, acquires colors and sense that it have in particular field. In this way, it is important to have in mind that the main conjunct of experiences and economic solidarism fomentation, generated in the eighties, adapts in movementist nets. Such nets, although its universalizing appeal, are restrict to a determined representations and relations circle. The requirements for the attendance of the demands that manifest in them, as its decision processes efficacy, can not be conducted, for no good reason, to citizenship treatment. To suppose that the mobilization and stress capacity are popular web natural qualities, would be endowed of elevated internal cohesion, would only exclude those already excluded. Because, as Domo affirms, the only way of contour this race “among divers segmented groups concomitantly mobilized, is institute regulatory politics that pass through the interests groups, reaching potential beneficiaries” (1995: 60). If there is hegemony to be conquered in public space, it must serve to oxygenate political and administrative apparatus, conquering new institutional devices and construct viable proposals to whole society.

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