Solidarity economy and recycling co-ops in São Paulo: micro-credit to alleviate poverty

Abstract

Lack of working capital hinders collective commercialisation of recyclables. Social exclusion and bureaucratic constraints prevent recyclers from obtaining official bank loans. As they continue to depend on intermediaries, the cycle of poverty, dependency, and exclusion is perpetuated. The article discusses collective commercialisation and the micro-credit fund created among 30 recycling groups in the Brazilian city of São Paulo. A committee of eight women recyclers manages this fund. The article contextualises reflections on empowerment and community-based development, applying the theoretical framework of social and solidarity economy. The author finally suggests that inclusive governance structures have the potential to generate greater justice and sustainability.

Keywords:

• Gender and Diversity
• Governance and Public Policy
• Labour and Livelihoods
• Social Sector
• Latin America and the Caribbean

Acknowledgements

Many people were involved in this work, to whom I extend my thanks. First of all the participants of the management committee of the PSWM project, in particular the recyclers. My colleagues and friends Maria Ruth Takahashi, Fábio Luiz Cardozo, Angela Baeder, Nidia Pontuschka, Ana Maria Marins, Lúcia Martins Campos, and Solange Dias have been central in creating this process. Other practitioners, scholars, and collaborators in Brazil have also been involved in the PSWM project and have contributed to the thought process. Research funds were provided through the Canadian International Development Agency (CIDA), via the University Partnerships in Co-operation and Development Program (UPCD).