New Publication: UKM Ethnic Studies Paper Series No. 51

Tan Jun-E. 2016. Social and Solidarity Economy for Sustainable Development in Malaysia: Concepts, Contexts and Case Studies. UKM Ethnic Studies Paper Series No. 51, April. Bangi: Institute of Ethnic Studies. ISBN 978-967-0741-31-4

Abstract: To achieve sustainable development, the mainstream economic paradigm needs to be adjusted to address social and environmental costs of production and consumption that have been dismissed as externalities. For this, the social and solidarity economy (SSE) is seen as a pathway, because of its historical position of addressing linkages between social and economic missions, and due to its rootedness in real world practices globally that challenge the neoliberal and market-oriented hegemony. This paper positions the SSE as a vehicle towards sustainable development in Malaysia. It sets out to provide theoretical and empirical insights linking SSE and sustainable development, by uncovering the concepts and contexts, and analysing four case studies within the Malaysian SSE. In the case of Malaysia, its SSE is composed of four main components: cooperatives, social enterprises, civil society organisations that run economic activities, and mutual benefit societies. They are wedged between a strong state and a thriving market economy, with the former driving institutions and policies that shape the SSE‘s direction, and the latter influencing the rules of the game. Amidst these are proponents and possible allies for inclusive growth, including the push for more corporate social responsibility, a vibrant Islamic financial market, and advocacy groups for business and human rights. Beyond the theoretical concepts and a bird‘s eye view of the Malaysian SSE, the paper explores initiatives within the SSE in Malaysia that incorporate social, environmental and economic goals. Through the chosen initiatives, the paper seeks to uncover the ways in which the SSE organisations fulfil the triple bottom line, their underlying philosophies, and the common challenges faced. Four cases were chosen in a study that was conducted in 2014: Taiwan Buddhist Tzu-Chi Foundation Malaysia with its community recycling programme, Credit Union Promotion Club in educating and financing the poor, Wild Asia in environmental consultancy, and Koperasi Belia Islam with their organic farming programme. The SSE organisations run projects that fulfil the triple bottom line through generating income by providing environmental goods and services in a socially beneficial manner, or providing social goods and services in an environmentally sensitive manner. Their initiatives are motivated and framed by diverse religious and political philosophies, from local and global influences, enabling them to see and act beyond the prevalent mindset of capitalism and materialism. However, SSE organisations face multiple challenges in integrating themselves within the wider economy, competing against conventional businesses for market share and labour, while having multidimensional targets and constraints of their multiple bottom lines. The mainstreaming of the SSE vision is needed, for public acceptance and also for supportive governmental policy which would ease their operations. The case studies are exemplary not only within the SSE, but also within the wider economy, as a glimpse of how the economy could be more conducive to societal and environmental well-being. In the short term, policies should be put in place to support the SSE, but in the long term, structural changes in the wider economy should be implemented to level the playing field. A balance between top-down and bottom-up approaches in Malaysia‘s SSE and further research on mapping the movement will maximise its potential in driving sustainable development.

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