Category Archives: Social economy

Social investment and the eradication of poverty

The Social Metrics Commission recently issued the report on their work to measure poverty in a more meaningful way. They estimate that 14.2 million people in the UK live in poverty, including 4.5 million children. These stats are shocking and underline the vital role of so much of the charity sector and social economy, working in many ways to address the root causes or the effects of poverty.

Big Society Capital (BSC) believe that social investment (i.e. repayable finance used to create impact) can be (a small) part of the solution alongside the social economy sector’s other funding sources. Money provided upfront by social investors is used by social enterprises and charities to finance income-generating models so that they are able to make a greater difference in addressing poverty.

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Social Impact and Inequality

“As long as poverty, injustice and gross inequality persist in our
world, 
none of us can truly rest.” 
Nelson Mandela

Inequality is a difficult topic to understand and tackle but it seems to be increasing in a relative sense and surely has to be addressed by all those working for a fairer society – that includes those pushing for a wider and more effective social economy.

According to the OECD, the average income of the richest 10% of the population is about nine times that of the poorest 10% across the OECD, up from seven times 25 years ago. (OECD).

There has always been income inequality but as the world becomes more and more interconnected, the divisions between those that ‘have’ and those that ‘have-not’ is increasingly widening.  And this has a knock-on effect where the disparities in income translate into disparities in wealth – raising the question, who owns our world?

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