President Luiz Inácio Lula da Silva sanctioned, this Monday (23), the bill that creates the National Solidarity Economy Policy and a system of the same name to coordinate actions to promote non-profit cooperative economic enterprises. The law, named Paul Singer, honors the economist and professor who died in 2018, aged 86. Paul Singer was the country’s first National Secretary of Solidarity Economy and one of the pioneers to work on the concept in the formulation of public policies, during the first Lula government, in the early 2000s.
“I have just signed a law that takes care of the solidarity economy. And I am very proud because you are suggesting to name Paul Singer as the Paul Singer Law, which is effectively a very deserved tribute, because in Brazil there has never been anyone who takes care of the solidarity economy like Paul Singer”, said the president, in video posted on social media after sanctioning the text, which causes the law to come into force. According to the Minister of Agrarian Development, Paulo Teixeira, author of the original project that resulted in the text approved by the National Congress last month, the new law makes the National Solidarity Economy Policy a state action.
According to the approved project, municipal and state conferences will be held periodically, in addition to a national edition on the topic, with the National Council for Solidarity Economy (CNES) being responsible for preparing and proposing to the federal Executive Branch a national plan taking into account the deliberations of the national conference , which is also responsible for evaluating the policy in the area every four years.
The CNES, the national conference, bodies linked to the topic at the municipal, state and federal levels, civil society organizations and solidarity economic enterprises are part of the national solidarity economy system, in addition to the Organization of Brazilian Cooperatives (OCB) and the National Union of Solidarity Cooperative Organizations (Unicopas).
What is it
According to the definition of the new law, a solidarity economy enterprise is one with economic and non-profit purposes, self-managed by its members, who must collectively carry out economic activities and decide on the sharing of their results.
The initiative must have transparent and democratic administration through the sovereignty of the assembly and practice trade in goods or provision of services in a fair and supportive manner, distributing the financial results of economic activity proportionally in relation to economic operations and activities carried out individually and collectively.
The net operating result, if any, must be allocated to its purposes or to help other similar enterprises in difficulties or even for community development or the professional and social qualification of its members.
Solidarity economic enterprises that operate in the form of a cooperative will have their operation regulated by cooperative legislation. Enterprises whose economic activity is the intermediation of subordinate labor will not benefit from the national policy.
There will also be a national register of enterprises so that they can access the benefits, which include promotion of training, technical assistance and social and professional qualification; access to finance and credit services; and promotion of commercialization, fair and supportive trade and responsible consumption.
Biography
Paul Singer was a professor at the Faculty of Economics, Administration and Accounting at the University of São Paulo (USP) and developed several sociological studies on economic development based on strengthening the internal market and local economies to combat poverty. In the 1980s, he helped found the Workers’ Party (PT).
In 1989, he was invited by the then mayor of São Paulo, Luíza Erundina, to take over the municipality’s Planning Secretariat, holding the post throughout his term, which ended in 1992. In 2003, during the Lula government, he assumed the National Secretariat of Solidarity Economy (SENAES), a department still linked to the Ministry of Labor and Employment (MTE).
*With information from Agência Câmara.
