Economy of Communion: Bridging the gap between rich and poor

Italian economist Luigino Bruni and Netherland’s former Central Bank director Leo Andringa travel all over the world, tirelessly making a strong pitch about a revolutionary economic model–the Economy of Communion (EoC) of the Focolare Movement that promises to be a more meaningful and sustainable solution to bridging the ever-widening great divide between the rich and the poor.

"Unlike the capitalist system which is above all focused on making profits, the EoC way focuses on capitalizing on the significance of elevating the plight of people to achieve a more sustainable economic gain," stressed Bruni, in a recent dialogue with some of the top brass in Manila’s elite business circle.

Andringa distinguishes between EoC and the corporate social responsibility and philanthropy.

"Corporate social responsibility is good, but it is optional for companies that have the luxury of shelling out money. It’s a materialistic approach because it can be used as a marketing tool and a way to improve the image of a company. On the other hand, the EoC way is a more internalized approach to reaching out to people in need, profit is still a motivation but it is achieving profits for the purpose of serving others."

This more internalized approach, goes beyond the usual mode of charity work and doleout because it seeks to establish a relationship between the giver and the recipient.

Bruni pointed out that for decades, the task of distributing wealth often fails there is no bond that tightly welds those in a position to improve the lives of those that badly need it.

"The missing links are that of proximity and reciprocity. To be effective in helping the poor, help must come from someone known to the recipient, such as a neighbor or an employer so there is proximity, and the recipient must be put in a position where he or she is under the impression and understanding that she has a responsibility to turn that help into raising her economic status–that’s reciprocity."

The EoC’s espousal of unorthodox economic concepts is beguiling, but both Andringa and Bruni believe it can really work because the concept of sharing is natural to people.

This economic model ensures the right of the investor to make a decent return on his investment. The investor freely takes from the net income of the company his targeted return on investment.

The residual profit is then divided into three. The first part is for further reinvestment in the company such as acquiring capital equipment to replace aging machinery or money for expansion so that more economic opportunities are created. The workers benefits and share of the profits also increase with business expansion and growth.

The second part is allotted for the lesser privileged in the EoC community so that their standard of living is improved. The workers are the Eoc community which can further be expanded to include an adopted poor community.

The third part is for the creation of structures for the new man. This include physical structures like centers where meetings are held to instill or reinforce the goodwill that was created.

"It sounds so utopian but we have seen it work so well in so many countries," stressed Bruni.

The EoC initiated by its founder Chiara Lubich, has chalked up a track record of success in more than 750 companies in five continents where the Focolare has spread its mission of unity. The Focolare is present in over 180 countries including Muslim states like Syria, Iraq, Turkey, Libya, Jordan, Iran and Algeria. While EoC may appear to have been crafted for Third World economies, there are many developed countries adopting the economic model, including countries in North America, Australia and Western Europe.

"The ultimate objective is to empower those that need it and because the EoC is people-oriented and assures workers a fair share of their company’s earnings, the relationship between employer and employee is enhanced. If workers feel that they have more responsibilities other than receiving their salaries, that they are part of the larger goals of their company, then they are more motivated," said Bruni.

He pointed out that the EoC’s final step to help the poor is in creating the response and re-establishing full reciprocity.

"When a family is helped with the profit of the EoC, the process will not be accomplished with the act of receiving the money nor when the money is spent. It will be accomplished only when the help received puts the family in a condition of leaving the situation of deprivation and re-establishing a full relationship in reciprocity and equality. Success is measured when beneficiaries get out of the doleout mentality and start thinking how to build their lives with the help that they received," said Bruni.

Local EoC proponents like Francis and Tess Ganzon, owners of Bangko Kabayan recalled how their incorporation of the EoC lifestyle in their business, helped them weather several tough breaks in the business.

Francis said that during the Asian financial crisis in 1997 when markets for loans dropped dramatically, the bank had to explore new markets. The couple took a leap of faith and ventured into the "unbankable" area of micro-financing.

The bank employees, who hold stock option plans and benefit from profit-sharing scheme, felt a sense of responsibility for the bank’s survival and fully supported the microfinance project, focusing on addressing the need for training and working together as a group.

The venture guaranteed repayment of loans.The initial P150,000 fund allocated had grown almost three-fold and clients under the microfinance category, grew to about 8,000.

Today, Bangko Kabayan is the largest rural bank in Southern Tagalog region and the sixth most profitable rural bank in a country of more than 700 rural banks.

"We wouldn’t have accomplished so much and gone this far, if we didn’t have that spirit of oneness with our employees. I believe that the EoC way helped us create the required positive vibes in our company," said Tess.