Transcript Karol SACHS - Ekonomiaspoleczna.pl

Which alternatives to mix
European public subsidies
with private social
financing?
Alternative and complementary approaches for funding social
entreprises sector in Europe
Polish Social Economy Meeting (OSES), Krakow, 11 Oct.2012
Karol SACHS, Crédit Coopératif, TISE, European Federation of Ethical and Alternative Banks/FEBEA
From European subsidies
towards European facilities
o
European structural Funds (ESF + ERDF)
Uncertain future in the context of financial and debt crisis
Reliance of the organisations on public funds
Risk of financial difficulties due to EU/national delay on payment (Chênelet group)
o
Other systems of special favourable refund conditions
(« repayable public money ») are used by the EU
Ex: JEREMIE-Joint European Resources for Micro to medium Enterprises
o
System of « repayable public money » enables a
leverage effect on loans and credits from the banks.
Ex: France Initiative
Other possibilities of financial
ressources
o
Private donation/philantropy, related with:
- quality / transparency ; tax incentives
Ex: Saving account « Agir » (meaning « Acting ») proposed by Crédit Coopératif bank (FR) :
the client can donate a percentage of its interest for an NGO that he choses.
In 2011, 3.8 M€ of grants as total amount for NGOs in partnership with Crédit Coopératif.
o
Social investments, related with:
- capacity building ; quality / transparency ; tax incentives
Ex: 90/10 Fund: every Mutual Fund in EU can invest 5 to 10% in not listed companies.
In France, if 5-10% of the total assets are invested in solidarity based companies (1) with a
social/environmental added-value, the Fund gets Label of « Solidarity-based Fund » +
90-95% invested in Socially Responsible Investment shares, bonds or money market.
(1) To get Solidarity-based company accreditation from the State department :
Or 30% of workers send by the social services (contracts for inclusion, professionalization, disabled)
Or the company is managed according to democratic principles + the average salary for the 5 best paid
employees does not exceed 5 times of the minimum salary for full time employee (5*1425=7125 €).
Or the financial institution portfolio is made up of 35% of assets from solidarity-based companies
Or the credit institution provides at least 80% of loans/investments for solidarity-based companies.
Positive dynamic OF the sector and
FOR the sector : the French case
1983: Credit cooperatif + Catholic NGO ‘CCFD’ created the 1st solidarity-based
mutual fund « Faim et Développement » (Hunger and Development) for
developping countries
1995: FINANSOL, created by and for the actors of solidarity-based finance
2001-2002 + 2008: 2 laws to boost private funds for social finance
Since 01/01/2010, all the asset managers have to propose to the workers at least 1 pension fund (= OFE
in Poland) with “social option” among the choice : it is called “Solidarity-based pension fund”.
2003: 1st publication of « Solidarity-based finance Barometer », a database of social
finance published in the national newspaper La Croix
2012: 10th Anniversary of « Solidarity-based finance Barometer »
 Total amount of solidarity-based savings has reached ± 3.5 billion €
 Over a ten years period, solidarity-based savings have increased twelvefold.
2012: 1st social/environmental impact assessment of solidarity-based finance.
- 82.700 enterprises supported (= 201.000 jobs)
- 33.500 persons rehoused
- 1.000 projects for international solidarity
- 3.600 KWc green energies installed capacity
What is FINANSOL ?
Association created in 1995 by the actors of social and
solidarity-based finance in order to develop solidarity in
savings and finance activities.
Group of 70 members working
with solidarity in finance (asset
management companies, banks,
mutual insurance company)
A Label launched in 1997 for the
solidarity-based saving products
(128 products in 2012) + An
independant committee.
Other activities to raise awareness,
to increase the size of the sector
and to work on lobbying towards
European and national policies

Annual publication of « Solidarity-based finance Barometer »
providing statistical data + good practices of the sector
Need for a Social finance
Observatory
Solidarity-based savings (in M€)
Solidarity-based investments
(in M€)
Total donations from share
interest products (in M€)
In France (2012) = 3.5 billion € in solidarity-based savings and 897 million € for solidarity-based investments
10 years of Solidarity-based savings = 12 times more money
Proposals for Poland
Polish Social Economy Meeting (OSES), Krakow, 11 Oct.2012
Karol SACHS, Crédit Coopératif, TISE, European Federation of Ethical and Alternative Banks/FEBEA
1) To allocate 2% of the
obligatory reserves of the
banks for microcredit
Policy launched in 2003 by Ignacio Lula da Silva, President of Brazil, with
12% of unemployment rate (6% recently).
In comparison, in France, such a measure could provide 540M €
(so ± 50.000 microcredits delivered and 60.000 jobs created/maintened)
France average: 1 microcredit = 11 K€ + 1,2 job created/maintened.
And in Poland?
Polish Social Economy Meeting (OSES), Krakow, 11 Oct.2012
Karol SACHS, Crédit Coopératif, TISE, European Federation of Ethical and Alternative Banks/FEBEA
2) To implement pension fund
with social/solidarity-based
option
1994: 1st solidarity-based pension fund (1) (by France Active)
2001-2002: Possibility to introduce solidarity-based pension fund.
2008 : All French managers of pension funds have to introduce at least
one solidarity-based pension fund among the choice for their clients.
2003  2011, solidarity-based savings increase (44,3% growth in 2011).
Growing number of subscribers to social pension funds: 500.000 workers.
Huge potential without any public money. Only investment = a law.
What can be done in Poland with OFE?
(1) Called in France « Fonds salarial » = workers funds
Polish Social Economy Meeting (OSES), Krakow, 11 Oct.2012
Karol SACHS, Crédit Coopératif, TISE, European Federation of Ethical and Alternative Banks/FEBEA
3) To create a mutual fund to
support the development of
social entreprises sector.
Italian successfull examples of CoopFond and Fundo Sviluppo for the
cooperative sector (law of Romano Prodi government).
= 3% of the annual benefits of the cooperatives members dedicated to the
fund for development of cooperative entreprises.
120 K€ of initial capital in 1993, now ± 400M € of total assets for each fund.
How this mechanism can be adapted to the cooperative sector?
Polish Social Economy Meeting (OSES), Krakow, 11 Oct.2012
Karol SACHS, Crédit Coopératif, TISE, European Federation of Ethical and Alternative Banks/FEBEA
4) To create a cross-border
fund for social
entrepreneurship (European
label EuSEF)
EuSEF label = European Social Entrepreneurship Fund.
70% of social entrepreneurship + 30% of Socially Responsible Investments assets
Private investors
Managers of collective investment undertakings such as UCITS.
Objective is to facilitate access to financial markets for social enterprise,
EUSEF label creation is one step forward to support social entreprises in Europe
through PRIVATE Social Investment Funds .
Poland is the biggest market in Central and Eastern Europe. That is why EuSEF
fund could be crossborder to develop the social entreprises in that zone.
Polish Social Economy Meeting (OSES), Krakow, 11 Oct.2012
Karol SACHS, Crédit Coopératif, TISE, European Federation of Ethical and Alternative Banks/FEBEA
For any question, please contact :
Karol SACHS
Chief of the Innovation and Research Mission
at Credit Coopératif
Honorary Chairman of FEBEA
Tel: +33 1 47 24 85 26
Mobile: +33 6 85 43 55 71
Email: [email protected]
Polish Social Economy Meeting (OSES), Krakow, 10 Oct.2012
Karol SACHS, Crédit Coopératif, TISE, European Federation of Ethical and Alternative Banks/FEBEA