1. Alternatives to the grant culture: sustainable finance for local employment development Christophe Guene Juan-les-Pins, June 2005

2. sofi Factors of non-sustainability of local economic initiatives Project level poor management =>… poor market access =>… poor access to finance =>… Regional factors -regional financial exclusion / leakage -poor access to distribution networks -volatile markets Sector factors -new sector -low profit sector -volatile (risky) sector -complex sector Societal & Envir. factors - globalisation of production and distribution networks - level of fear (lack of confidence & trust) - increasing individualism - eco-liabilities & accidents Gvt factors

3. sofi Credit and Sustainability introducing methodological discipline Do you know your market, your source of income? Do you master your figures? (proper accounting?) Do you have a plan for your business? Who is responsible? => Is your activity going to be sustainable? cultivating a creative culture A focus on the future Negotiation relationship

4. sofi Community Banking The rise of "new social banking" in Europe Microcredit EcoBanking Mutual Banking & Social Economy Finance Mutual Credit

5. sofi "new social banking" in Europe (1) : Mutual and Social Economy Bkg Mutual Banking & Social Economy Finance What: 1. savings & credit mutuals (Credit unions, Savings & credit associations, Coop banks) 2. credit coops (Mag, Credal…), Specialised coop banks (BFS…) Targets : 1. members (local individuals) 2. associative sectors, social sectors (creches, hospitals…), inclusion companies, worker cooperatives… Sustainability contribution: 1. Access though small scale credits + local re-investment, - 2. Professionalisation, access through specialisation

6. sofi "new social banking " in Europe (2) : Eco-Banking & Finance EcoBanking What: eco-funds, eco-banks, => Ethical banks Other Examples: ABS (Ch), Banca Etica (It), Merkur (Dk)… Targets: organic agriculture, renewable energies, eco-businesses + women initiatives, culture initiatives, participative enterprises Associative sectors, schools, social & eco-housing Pioneers: Gemeinschaftsbank (De), Triodos Bank (NL), Ökobank (De) Sustainability contribution: Access through small credits, Specialisation, identification of social capital + creation of markets

7. sofi Community Banking "new social banking " in Europe (3) : Community Banking Pioneering example: South Shore Bank (Chicago) European Examples: ART (Birmingham), Caisse Solidaire du Nord (Lille-Roubais) Targets: local enterprises, inclusion companies, Starting micro-enterprises, renewable energies Cultural projects… Sustainability contribution: Access through small credits, local re-investment, specialisation + contribution to professionalisation

8. sofi "new social banking " in Europe (4) : Micro-Finance Microcredit Pioneering example: Grameen Bank (Bangladesh) European examples: Adie (Fr), Aspire (Belfast), WWB (Sp), Kvinnebanken (No), Fundusz Mikro (Pol)… Targets: unemployed, individual entrepreneurs, existing micro-enterprises Sustainability contribution: Access though very small loans, Finnavial innovation + contributes to professionalisation

9. sofi "new social banking " in Europe (5) : Mutual Credit Mutual Credit What: clearing systems, time banks, barter schemes, scrip, Interest free banks (JAK, Sw)

10. sofi Dealing with a small misunderstanding The limits of (social) finance is that it is pre-finance,......it does not replace subsidies

11. sofi How do they contribute to sustainable local employment? They professionalise They give access to finance HOW? By being not-for-profit primarily + Through Financial innovation + by keeping money local + through specialisation + by recognising social capital => They create (access to) markets

12. sofi Is this sustainable? E.g. a micro-finance organisation 50% of costs covered by interest on credits and other service charges to the clients 50% of other external funding !

13. sofi sofi money & banking for Society Rue H. Chomé, 16 B-1030 Brussels, Belgium Tel +32-(0)2-762 14 31 contact@sofi.be www.sofi.be