Private interests are below general interests. Cooperation is better than competition. Putting people and their rights before capital, minimizing the ecological impact, democratizing corporations, promoting participatory democracy... the common good calls for a more ethical and human approach to the economy. These are some of the foundations on which a economy for the common good, which seeks social welfare more than capital or money.
In this article we are going to take a closer look at what is economy for the common good, its main characteristics, the fundamental principles that support it and how it contributes to the development of a more just and sustainable society.
What is the economy of the common good
La economy for the common good (EBC) is a concept proposed by the Austrian economist Christian Felser in 2010 as an alternative model to capitalism and communism. The main idea behind this approach is to put social welfare and respect for the environment at the heart of economic activity. In this way, a system is sought that gives priority to ethical values and cooperation, rather than unbridled competition and individual profit.
Rather than relying solely on the pursuit of economic benefits, the EBC proposes a set of universal values as human dignity, solidarity, social justice, environmental sustainability, transparency y democratic participationThese principles should guide business and economic practices, with the aim of creating a more just and inclusive society.
This economy is articulated through a series of tools such as the Balance of the Common Good (BBC), which measures the ethical performance of companies. Instead of measuring success only through the Gross Domestic Product (GDP), the EBC proposes another indicator, the Common Good Product (CGP), which measures the contribution of economic activities to social and environmental well-being.
solidarity finance
One of the fundamental pillars of the common good economy is the creation of a financial system that is fairer and more focused on the needs of society. This is reflected in initiatives such as the banking for the common good, a model that argues that banking institutions should prioritize general welfare over profits.
In this type of banking, public banks do not generate interest for depositors or distribute profits to owners. Instead, they focus on financing projects that contribute to the common good, such as sustainable businesses or social initiatives. In this way, the solidarity finances They play a crucial role in transforming the financial system into one that is more inclusive and oriented towards collective well-being.
On the other hand, the economy of the common good also advocates using the National Happiness Index, an indicator already used in Bhutan, to measure a country's prosperity. This index takes into account factors such as ecological sustainability and social justice, rather than focusing exclusively on economic growth.
Matrix of the economy for the common good
La Matrix of the Common Good (MBS) is a tool that allows the evaluation of a company's impact on society and the environment. It is presented in the form of a double-entry table, which places the following elements in a row: interest groups main aspects of a company, and in a column to the core values defended by the economy of the common good.
- Interest groups: suppliers, employees, customers, competitors and the social environment.
- Values: human dignity, solidarity, ecological sustainability, social justice and democratic participation.
The interaction between these groups and values makes it possible to quantify the contribution to the common good of each company. In the evaluation, both positive and negative impacts are taken into account. For example, practices such as wage inequality or human rights violations are penalized. Companies that obtain a positive score on the balance of the common good They can access tax incentives, tax reductions and better conditions in public procurement.
History and principles of the common good economy
The common good economy is rooted in dissatisfaction with the traditional economic system, which prioritizes short-term profit and fierce competition between companies. Felber proposed the CBE as a response to these problems, with the aim of putting people and the environment at the center of economic activity.
The principles of the common good economy are based on values that, although universal, are often overshadowed by economic interests. five fundamental principles that govern this economic model are:
- Human dignity: Respect for all individuals, regardless of their social or economic status.
- Solidarity and social justice: Promote cooperation and share resources to generate common well-being.
- Environmental sustainability: Ensure that economic activities do not harm the environment and that resources are used responsibly.
- Transparency: All economic activity must be transparent, so that citizens can be aware of what is happening in their economic environment.
- Democratic participation: Every individual should have a say in the economic decisions that affect their lives.
Advantages and disadvantages of the common good economy
Like any economic model, EBC has both advantages and disadvantages, although its benefits seem to be more numerous. Among the main ones: and advantages of the EBC are:
- Social and ethical approach: The EBC places people's well-being at the heart of the economy, making it more fair and equitable.
- Sustainability: Promotes responsible use of natural resources and environmental preservation.
- Transparent economy: Companies under this model operate within a framework of transparency, which fosters greater trust on the part of citizens.
- Tax incentives: Companies that contribute to the common good can benefit from tax advantages, which promotes the adoption of this model.
On the other hand, among the disadvantages that this model raises are:
- Idealism: Some argue that the EBC is a utopian model, difficult to implement in the current global economic system.
- Challenge for traditional companies: The transition to a common good economy can be costly and difficult for companies accustomed to profit maximization.
The economy of the common good and its relationship with sustainability
Sustainability is one of the key pillars of the common good economy. In this model, companies must not only be concerned with making a profit, but also with assessing the impact of their activities on the environment.
The EBC promotes the efficient use of natural resources and encourages the production of products and services that not only satisfy the needs of the human needs, but also respect the limits of the planet. In this way, the sustainability becomes a fundamental pillar within the model, ensuring that future generations can also benefit from the available resources.
In addition, companies that adopt this approach receive positive points in the balance of the common good, allowing them to access legal and tax incentives that facilitate their transition towards more sustainable and ethical production.
By implementing the EBC, the depletion of natural resources is avoided and conscious economic growth is promoted, where respect for the environment is a priority.
The common good economy not only aims to create a more just and equitable society, but also protect the planet and ensure its viability for future generations. The model's core values, such as human dignity, social justice and sustainability, are essential to consolidating an ethical economy that benefits humanity and the environment in which we live.