Microfinance: Giving Credit to Relationships

Written by Antonella Ferrucci Friday, 26 February 2010 17:18

Book review of Microfinance by Antonio Androni and Vittorio Pelligra, Il Mulino Publisher

Microfinance: Giving Credit to Relationships

 

In 2006, Muhammad Yunus and his Grameen Bank, historical promoter of microcredit programs, were awarded the Nobel Peace Prize. From that moment onwards, many commentators and specialists literally "jumped on the winner´s wagon," excessively inflating the number of articles and publications on microfinance. During these three years, we have heard two main versions: those who claim to redirect the success of microcredit to a sterile technical and operative question, and those instead who have described it - maybe even more disturbingly - as a "bucolic" phenomenon of rustic solidarity.

Evidently, both campaigns propose an erroneous or at least reductive image of the phenomenon. Andreoni and Pelligra have already been studying this topic for an unquestioned amount of time, and the merit of their book rests in the fact that it is able to successfully frame the phenomenon of microfinance within a well-defined methodological furrow. This innovative, and never as before necessary, operation allows the authors to provide an adequate and unified foundation - theoretical and philosophical-cultural - to the phenomenon of microfinance in its multiple dimensions.

Oltre il profitto: Adam Smith ai tempi dei bonus

Written by Francesco Gaeta Friday, 19 February 2010 18:56

Oltre il profitto:  Adam Smith ai tempi dei bonus

di Francesco Gaeta
pubblicato sul Sole 24 ore il 18/02/2010

«Se 20 anni fa un allievo fosse venuto all'esame a dirmi che fine dell'impresa è realizzare profitto non avrebbe avuto la seconda domanda. Oggi invece, in molti atenei, va avanti fino al 30 cum laude». Giulio Sapelli, vecchia guardia olivettiana al servizio dell'accademia (università di Milano), la mette giù così per spiegare quel che è accaduto negli ultimi due decenni circa il nesso tra obiettivi e strumenti d'impresa.

Uno smottamento semantico che ha confuso il fine - migliorare la qualità della vita producendo beni e distribuendo reddito - con il mezzo, ovvero tingere di nero l'ultima voce di bilancio. Un ribaltamento diventato frana in cui, a sentir lui, sono state trascinate multinazionali e società di rating, e perfino governi e banche centrali. L'invisibile pifferaio magico che ne ha guidato la danza ha lasciato cadere dietro di sé parole come merito, bonus, competizione, concorrenza. Fino al ciglio di un burrone che ci riguarda tutti.

La crisi, solo una corsa alla felicità

Written by Massimo Mucchetti Friday, 12 February 2010 15:32

L' economista Stefano Bartolini lancia una tesi nuova sul grande tracollo finanziario

La crisi, solo una corsa alla felicità

«Gli americani si sono indebitati per sfuggire a esistenze troppo vuote»
di Massimo Mucchetti
pubblicato sul Corriere della Sera il 25/01/2010

La storia della Grande Crisi, divampata nell' estate del 2007, non ha ancora trovato il suo Galbraith, capace di raccontarla con la brillante profondità che l' autore del Grande Crollo dimostrò nella ricostruzione dei fatti del 1929. E tuttavia le principali domande sembrano aver già avuto una spiegazione.

Tutte, tranne una: perché le famiglie americane, che con le insolvenze su mutui sub-prime e carte di credito hanno fatto cadere il castello di carte della finanza globale, si erano tanto indebitate per case, auto, vacanze, polizze sanitarie, scuole, fino a raggiungere un' esposizione assai superiore al prodotto interno lordo del loro Paese? Dire che sono state tentate dai prestiti a buon mercato e senza troppe garanzie spiega come abbiano potuto avere accesso al credito, ma non perché abbiano avvertito l' irresistibile urgenza di consumare sempre di più, avendo già 40 anni fa la vita più opulenta del globo. Aggiungere, come fa Robert Reich, ex ministro del Lavoro del primo Clinton, che la middle class è andata in profondo rosso mano a mano che i maschi adulti non potevano più aggiungere ore di lavoro a quelle già fatte e il numero delle madri lavoratrici era ormai raddoppiato, ci aiuta a capire la relazione tra debito e stagnazione salariale. Ma nulla ci dice delle ragioni per cui gli americani non si sono fatti bastare il tanto che già avevano, al punto da invertire la storica tendenza alla riduzione dell' orario, segno di progresso in tutti i lavori non particolarmente creativi.

The person in the first place

Written by Chiara Andreola Tuesday, 02 February 2010 18:14

The problem of employment has even strongly found it´s way into the Pope´s latest Angelus. What proposals can be made to react to the crisis? Three questions for Alberto Ferrucci, director of EoC Online.

The person in the first place

The question of work continues to be central in the Italian political, economic and social panorama. Names like Eutelia, Fiat and Alcoa have appeared in the first pages of newspapers for some time already, sad testimonies of more vast employment problems. Even the pope, in the Angelus on Sunday, January 31, faced up to the question, making specific references to the workers of the businesses in question who are present at Saint Peter´s Square. Calling everyone back to "a sense of responsibility" in front of the crisis, he associated these examples with the recent recall by the CEI (Central European Initiative) to guarantee work that isadequate to sustain families. It was a call that arrived exactly the day before the publication of the data on unemployment made by Eurostat, the offical statistics of the European Union. Unemployment percentages are rising all over Europe, reaching 22.8% in Lituania and even 19.5 percent in Spain, until recently shown as land of the new economic miracle. How can we interpret these data, and what should be proposed in front of such a dark picture? We speak with Alberto Ferucci, head director of EoC Online - Newsletter of the Economy of Communion.

Bruni: against the crisis, businesses that are more responsible

Written by Antonella Ferrucci Tuesday, 02 February 2010 13:25

The economist: when problems are temporary, businesses cannot socialize losses. Firing workers is the easiest way to cut costs, but it´s not the only way

Bruni: against the crisis, businesses that are more responsible

Today, defending work means "reaffirming the personalistic principle", reaffirming that "at the heart of every economic systems rests the person and work". Even in the crisis in which "technology becomes pervasive and capital always more inmaterial", so much so that it sanctions the domination of techno-finance over the real economy. This is why Luigino Bruni, professor of Political Economy at the University of Bicocca at Milano, finds words to defend the message given by Benedict XVI in the Angeles to be "perfectly in line with the concreteness of his teaching" and "important in the crisis phase which we are now going through".

The Pope gave encouragement to "do everything possible to safeguard and increase employment". Why, as an economist, do you see this appeal as being in line with Benedict XVI´s thought?

The Pope went into details. He cited two concrete cases, "two difficult realities" in Italy: Termini and Portovesme. Are you surprised by this concreteness?

L'economia disgregante del male

Written by Simona Beretta Tuesday, 05 January 2010 10:54

L'economia disgregante del male

di Simona Beretta
pubblicato sull'Osservatore Romano il 25/12/2009

Ho letto il Dizionario di economia civile (a cura di Luigino Bruni e Stefano Zamagni, Roma, Città Nuova, 2009, pagine 813, euro 65) pagina dopo pagina, dall'inizio, perché la questione di una "buona" economia è cosa seria e urgente. Non mi era mai capitato di fare qualcosa di simile, e mi è piaciuto molto. Sessantuno autori - professori famosi e giovani ricercatori - e centoquattordici lemmi, dal respiro pluridisciplinare, documentano tangibilmente che il senso di urgenza è condiviso da non pochi protagonisti. I lemmi riguardano sia dimensioni teoriche, sia prassi ed esperienze, sia personaggi del mondo dell'economia civile; l'obiettivo dichiarato dei curatori è "dilatare l'orizzonte della ricerca economica fino a includervi il valore di legame", che si aggiunge ai tradizionali concetti analitici di valore d'uso e valore di scambio dei beni economici.

Allo stesso tempo, il Dizionario risponde alla preoccupazione di ridare voce a una tradizione, importante e dimenticata, del pensiero economico e filosofico soprattutto italiano e di prendere le distanze da un sistema di pensiero autoreferenziale che riduce le interazioni economiche nell'orizzonte limitato delle decisioni di un improbabile individuo, chiuso e perfetto in sé.

Economia 2010, novità dal civile

Written by Paolo Loriga Sunday, 03 January 2010 11:46

Per l’Italia, piccoli segnali di ripresa. Ma cresceranno disoccupazione e precarietà. Le spiazzanti indicazioni dell’economista Zamagni.

Economia 2010, novità dal civile

di Paolo Lòriga
pubblicato su cittanuova.it il 3/01/2009

Non è male iniziare il 2010 con qualche granitica certezza: sarà l’anno dei Mondiali di calcio; le pensioni, da gennaio, saranno più magre; il prezzo del gas salirà del 2,8 per cento nel primo trimestre.Per la nazionale pedatoria, Lippi avrà le sue preoccupazioni. Ma niente a che vedere con quelle di troppe famiglia italiane, che continueranno a gestire un bilancio con entrate ridotte e crescenti uscite. In pari tempo, la Banca d’Italia registra un fenomeno che consideriamo preoccupante: la concentrazione della ricchezza, per cui il 10 per cento delle famiglie ne deteneva a fine 2008 il 44 per cento.

Does God own a vacuum store?

Written by M.C. Monday, 28 December 2009 11:53

Does God own a vacuum store?
published in Living City (January 2010)

Recently one of the families in our Focolare community discovered that their vacuum wasn’t working. It had finally been pronounced dead after a final attempt at the repair center, and buying a new one was out of the question. The security of the husband’s job was uncertain and his current income would not cover it.

I knew it was a source of stress, so I immediately lent them mine for a week since I was going away, confident that we would find them a vacuum through God’s providence. That month’s Word of Life was, “Sell your belongings and give alms. Provide money bags for yourselves that do not wear out …” (Lk 12:33).

Knowing that we strive to live the communion of goods among us as the early Christians did, upon my return I sent out an e-mail to everyone, sharing the need. The following morning a friend called to say she had an extra vacuum; then another called to say she would check out the local thrift shop; another offered to pray; and another had an extra vacuum as well.

Not only did God take care of this need, he even offered the family a choice. I was struck once again by how personal God’s immense love is for us, even in small things. We are indeed one big family, through which he communicates that love.
M. C., New Jersey

Opportunities to give and receive

Written by C.M. Monday, 28 December 2009 11:46

Opportunities to give and receive
published in Living City (January 2010)

Having recently moved from Italy to Boston after my marriage, I now study and work as a research assistant at Boston University. My husband and I try to use our money wisely and think carefully not only about our own needs but about the needs of others as well.

One of the first things we did was open a joint bank account and resolve to see together what was necessary when making spending choices.
One weekend one of our new friends had to work and would not have had time to shop for groceries. So when my husband and I went to the local farmers’ market, we had our friend’s need in mind. We counted out how many tomatoes, apples, cheese and vegetables we would need in our house for the week and shared the rest with these friends.

Little did I know that in return I would receive a very special gift. When I delivered the food, we spent time together in a deep conversation that was the beginning of a beautiful and growing friendship. I experienced that in a real community everyone has the opportunity to both give and receive.
C. M., Boston

Allergic to family?

Written by Vittorio Pelligra Saturday, 21 November 2009 16:23

Allergic to family?

Written by Vittorio Pelligra

Published in Cittá Nuova N.21/2009

Argentina. Social economy is growing.

Written by Antonella Ferrucci Wednesday, 18 November 2009 10:37

The role of microcredit and the dynamism of self-employed businesses in Argentina are considerable.

Argentina. Social economy is growing.

From Ciudad Nueva Argentina - Published on www.cittanuova.it on 17/11/2009

Social economy created 250 thousand jobs during the last few years in Argentina, an encouraging fact put into evidence by the country´s Minister of Social Development. A recent survey underlined the birth of nearly 100 thousand initiatives that have begun thanks to the cooperation between the State, private business and businesses linked to social economy.

Among such initiatives, it points out the importance of microcredit, which has reached higher possibilities in Argentina thanks to a law instituted by the National Commission for Microcredit, enabling the investment of more than 40 million Euro, as well as those by the Grameen Bank and other similar institutions. What launched the recent growth in this sector - signaled by Pope Benedict XVI in his encyclical Caritas in Veritate as one of the actors in globalized economy, was the 2001 crisis, when unemployment in Argentina reached unprecedented levels.

Among the phenomenon to note in the subject of social economy, other than cooperatives, non-profit and the economy of communion, is that of "recovered businesses". These are businesses that were abandoned by their owners or were failing, and are now run by their own workers. There are more than 100 of these, and they often have reached high levels of production and quality.

Fraternity, the forgotten principle

Written by Marco Girardo Sunday, 04 October 2009 12:26

For the economist Stefano Zamagni, "the idea of civil economy ought to be salvaged: we´ve seen that "political" economy is not enough"

Fraternity, the forgotten principle

By Marco Girardo
Published in Avvenire on 3/10/2009

"The concept was already elaborated in Italy in the 17th century in Genovese abbeys, and then forgotten in favor of Adam Smith´s thesis. But his cardinal points - efficiency and equity - are not enough if reciprocity is not put into play."

When "there is much confusion under the sky", lining up concepts and finding order to the words is not a sterile intellectual exercise, or an amusement in itself. And in the economic skies of this last year, we’ve been hit by the perfect storm: financial collapse and global recession in a period of twelve months. While the world is still assessing the damage, the great powers (G20) try to remodel the appearance of "turbo-capitalism" drugged by finance: more transparency, shared rules and increased attention to sustainable growth. An attempt to change the economic paradigm. Luigino Bruni and Stefano Zamagni - the former an economist at the University of Milan-Bicocca, the latter a professor of political economy in Bologna - offer a "exquisitely" Italian contribution with the first Dictionary of Civil Economy (Cittá Nuova, €65). In alphabetical order, from the "a" of accountability to "z" of "Zappa Gino" (reorganizer of book-keeping doctrine), they retrace a theoretical journey that is beginning to interest American universities.

Professor Zamagni, why are we dealing with an "exquisitely Italian" contribution?

"Because ´civil economy´ was born in our home. It’s an Italian invention. The term appeared for the first time in 1754 at the Federico II University of Naples. That year, Bartolomeo Intieri entrusts the abate Antonio Genovesi (student of Giambattista Vico) the first economics professorship in history. The professorship was entitled, "of Mechanics and of Commerce", for which Genovesi gave lessons on civil economy, which would also be the title of the work he would publish in 1765."

Nella "Caritas in veritate" c'è l'economia civile

Written by Gianfranco Fabi Thursday, 01 October 2009 20:06

Quattro passi nell'economia (e non solo) di Gianfranco Fabi

Nella "Caritas in veritate" c'è l'economia civile

 Nella "Caritas in veritate", l’enciclica che il Papa ha dedicato alla dottrina sociale, vi sono significate novità nell’analisi e nei giudizi della Chiesa. Nel mezzo della maggiore crisi economica dopo il ’29, una crisi che ha peraltro provocato un lungo supplemento di riflessione prima della pubblicazione del testo all’inizio di luglio, non ci si poteva che attendere una parola che non fosse solo di doverosa e scontata riaffermazione della centralità del messaggio cristiano, ma anche di risposta profetica alle esigenze del mondo contemporaneo.

Una scelta per il vivere civile

Written by Vittorio Pelligra Friday, 25 September 2009 15:05

Una scelta per il vivere civile

di Vittorio Pelligra
pubblicato su www.cittanuova.it il 25/09/2009

Gli emendamenti al decreto sullo scudo fiscale hanno esteso la copertura ai capitali frutto di guadagni illeciti. Ma permettere di acquistare il diritto a violare la legge significa mettere in discussione il patto sociale.

Nel precedente editoriale mi ero soffermato su come lo scudo fiscale sia a tutti gli effetti un condono, con le relative inefficienze: più lo si usa, meno è efficace, tanto è vero che il gettito è sempre inferiore alle aspettative.

Non dimentichiamo poi i costi nascosti di tali provvedimenti, che non rientrano nei calcoli presentati dal governo: inviando ai cittadini il segnale che chi evade le tasse è il più furbo, si intacca la loro disponibilità a pagarle. Il rischio di perdere con ulteriore evasione futura più di quanto si sia incassato grazie allo scudo è dunque concreto.

God Provides

Written by S.C. Thursday, 10 September 2009 07:48

God provides
published in Living City (October 2009)

A short while ago, my husband was talking to a relative and found out that the relative was in credit card trouble.  Although he was paying his monthly fees, his finance charges were making him sink deeper and deeper in debt (about $7,000).  Considering that the interest rate on loans is much lower than the credit card fees, we thought we could take out extra loans for his relative to pay off his credit card.  I have to be honest; at first I was a little hesitant. That was a lot of money.
“With the baby coming, who knows if we will need that money?” I thought. “What if he doesn’t pay us back? The loans we take out are in our name, so we’re responsible.”

But I felt that it was the right thing to do. The Gospel says, “Seek first the kingdom of God…” (Mt 6:33). Money was very tight, but we went ahead with the loan.
Just a few weeks later, we found out that my husband had received a scholarship for $26,000 — almost four times the amount we gave his relative. The money has no strings attached, and we don’t have to pay anything after school.

At first, we didn’t even believe it.  My husband went to talk to the admissions department at the university to be sure of the scholarship’s terms, but it was, in fact, free. God really does provide. This was for us the hundredfold promised by the Gospel.                  
S. C.

The Encyclical and a "Fraternal" Market

Written by Paolo Loriga Monday, 10 August 2009 08:02

Interview with Stefano Zamagni

The Encyclical and a "Fraternal" Market

by Paolo Lòriga
Published in Città Nuova n.15/2009

Stefano Zamagni, professor of political economy at the University of Bologna, Italy, is a consultant of the Pontifical Council for Justice and Peace, the consulting body that follows the themes addressed by "Caritas in veritate".

Which do you consider as "Caritas in veritate´s" most innovative point?

"A first point is the invitation to overcome the separation between the economic and social spheres. In the last three centuries, modernity has left us a model of society which is based on the economic sphere, on one hand, and the social sphere on the other. The economic sphere has an iron-like logic which does not answer to other opinions, to the point that we say "business is business" – compensations occur in the social sphere. That is to say, the social sphere has to provide everything that the market economy typical of capitalism isn’t capable of producing on the plane of justice and equity. Let’s not forget that the welfare state, the social state, is son of this logic of separation. Eighth century thought, and especially 9th century thought - whether on the liberal or statist side of politics - does not alter that model.  Well, Benedict XVI´s encyclical tells us that this is an old way of thinking, because we´ve entered in the post-industrial society and therefore the social element must enter inside the economic one, not at its margin or following it. It’s a notable innovation that can allow the market to go back to being an instrument of civilization, of relationships, and of generative structures."

Scudo fiscale, condono inefficace

Written by Vittorio Pelligra Wednesday, 05 August 2009 12:40

Il recente annuncio del ministro Tremonti riapre la discussione sulla reale utilità di questo strumento

Scudo fiscale, condono inefficace

di Vittorio Pelligra
pubblicato su Città Nuova n. 15/2009

In un noto articolo pubblicato nel 1986 sul Wall Street Journal, due economisti americani, Barro e Stockman, spiegavano ai lettori come l’unico condono in grado di funzionare efficacemente non può che essere anche l’ultimo. Se infatti gli evasori si dovessero aspettare un ulteriore condono, di lì a qualche anno magari, perché mai dovrebbero decidere di aderirvi oggi? Magari perché il governo promette che, dopo questo condono, ci sarà un inasprimento delle pene, un incremento dei controlli e che non ci saranno mai più altri condoni.

Successful collective efforts

Written by Benedetto Gui Saturday, 01 August 2009 11:52

Benedetto Gui
Successful collective efforts

The Economy of Communion mentioned by Pope Benedict in his latest encyclical, “Caritas in Veritate,” inspires local entreprises around the world. A visit to the village of Vazantes, in the Brazilian state of Ceará, where social programs engage the entire community
published in Living City (August 2009)

Our vehicle speeds along, brushing against leaves that invade the narrow road to Vazantes, a Brazilian village of about 2,000 people. Is this really the “semi-arid” zone which is supposed to include most of the state of Ceará and neighboring states? The vegetation consists of bright green shrubs, interspersed with clearings for grass and the cultivation of caju, a particularly drought-resistant plant that produces cashew nuts. Pools of water fill large potholes in the road. “I would call it the ‘semi-humid’ zone,” I say to the others in the car.

Fr. Pedro Rubens, the young rector of the Catholic University of Pernambuco/Recife, smiles and explains that we are still in the rainy season which was wetter than usual this year. “If someone comes here at the end of the nine-month dry season during which there is no rain at all,” Fr. Pedro continues, “they immediately understand why local people have problems surviving.” People end up leaving the villages and going to the coastal cities.

Even the WSJ cites the Encyclical and EOC

Written by Sarah Mundell Friday, 17 July 2009 16:27

The article, published July 7, cites various passages of the encyclical

Even the Wall Street Journal cites the Encyclical "Caritas in Veritate"

and EOC

This past July 7, the Wall Street Journal published a brief article citing a few passages of the new papal encyclical, "Caritas in Veritate".

Among the passages is included that in which the Pope refers to the "so-called 'civil economy' and the 'economy of communion'. This is not merely a matter of a 'third sector', but of a broad new composite reality embracing the private and public spheres, one which does not exclude profit, but instead considers it a means for achieving human and social ends...It is to be hoped that these new kinds of enterprise will succeed in finding a suitable juridical and fiscal structure in every country".

According to the interpretation of the Wall Street Journal, the Pope expresses in these passages "the need to use the economy to aid the poor and care for the environment, but he also supports globalization as a way to relieve poverty and backs the idea of a free market".

Go to the original article:Pope Weighs In on Financial Crisis

Distributing profits

Written by Francesco Tortorella Wednesday, 01 July 2009 22:55

Francesco Tortorella and Leo Andringa
Distributing profits
How EoC businesses share part of their earnings
published in Living City Special Edition Economy of Communion (July 2009)

From its beginning in Trent during World War II, the Focolare Movement’s spirituality of unity
carried a clear imperative: to live as the early Christians did, “so that no one was in need among them” (Acts 4:34). In the 1980s, the Movement systematically directed its attention to the world of economy and work, along with all the social problems connected to it.

available online