Building a Solidarity Economy: Alternatives to Capitalism

Apr 10

The Limitations of Capitalism

For all its promises of innovation and prosperity, capitalism has repeatedly revealed its deep flaws: inequality, environmental degradation, worker exploitation, and the relentless prioritization of profit over people. In a system where wealth is concentrated in the hands of a few and economic security is out of reach for many, the call for alternatives is not just idealistic. It's necessary.

Introducing the Solidarity Economy

The solidarity economy offers a bold, hopeful vision beyond capitalism. Rooted in values of social justice, cooperation, and sustainability, it reimagines economic life not as a zero-sum competition, but as a network of mutual care and democratic participation. Rather than maximizing profits for shareholders, the solidarity economy prioritizes human needs and ecological balance.

Core Principles

At its heart, the solidarity economy is grounded in five key principles:

Cooperation over competition
Mutual aid and reciprocity
Democratic participation in economic life
Social and racial justice
Ecological sustainability

These values provide the foundation for building institutions that serve the common good, whether it's through cooperatives, credit unions, community land trusts, or mutual aid networks. Let’s explore how these models work and how they can help us move toward a more just, democratic, and resilient economy.

Worker-Owned Cooperatives: Democratic Workplaces

What Are Worker Cooperatives?

At their core, worker-owned cooperatives are businesses owned and democratically governed by the people who work there. Unlike traditional corporations, where decision-making is centralized in the hands of executives and shareholders, worker co-ops operate on the principle of one worker, one vote. This means workers have a direct say in major decisions, from how profits are distributed to the long-term direction of the company.

Cooperatives are more than just an economic model: they're a political statement. They challenge the top-down power dynamics of capitalism by giving workers control over their labor, their workplace, and their future.

The Benefits of Worker Ownership

Equitable Profit Sharing: In a cooperative, profits are distributed fairly among the workers who helped generate them, not siphoned off by absentee shareholders.
Worker Satisfaction and Dignity: Studies show that cooperative workers report higher job satisfaction and a greater sense of purpose and dignity at work.
Democratic Decision-Making: Co-ops encourage participation and accountability, fostering workplaces where people have a real voice.
Community Wealth-Building: Because they’re often rooted in their local communities, worker cooperatives reinvest profits locally and create stable, long-term jobs.

Successful Examples

Mondragon Corporation (Spain): One of the world’s largest and most successful networks of worker cooperatives, Mondragon employs over 80,000 people and demonstrates that democratic ownership can scale.
Evergreen Cooperatives (Cleveland, OH): A group of worker-owned businesses providing jobs and services in underserved communities, including a laundry cooperative serving local hospitals and a green energy company.
Arizmendi Bakeries (California): A network of worker-owned bakeries operating on a shared cooperative model, with each location independently managed by its worker-owners.

These examples prove that cooperatives can thrive in diverse industries – from manufacturing and agriculture to tech and service sectors. Importantly, they often show greater resilience during economic downturns, as democratic ownership fosters long-term thinking and mutual support.

How to Start or Join a Worker Cooperative

Starting or joining a worker cooperative is more accessible than many people realize. Here are some resources and steps for getting involved:

Key Resources:

Steps to Start a Cooperative:

Gather a core group with shared values and vision.
Define your mission and structure your business plan.
Choose a cooperative legal structure in your state.
Secure funding through member contributions, co-op lending institutions, or grants.
Establish democratic governance procedures, such as bylaws and voting processes.
Get support from regional co-op development centers or mentorship networks.

By participating in or starting a worker cooperative, individuals can take meaningful steps toward building an economy rooted in solidarity, fairness, and democratic control.

Credit Unions: Democratic Finance

What Are Credit Unions?

Credit unions are member-owned financial cooperatives that operate on democratic principles. Unlike traditional banks, which are owned by shareholders and driven by profit, credit unions are owned by their members – the very people who use their services. Each member has an equal vote in electing the board of directors, regardless of the size of their account.

In short, credit unions exist to serve their members, not to maximize profit. They embody the principles of the solidarity economy by redirecting financial power toward community wellbeing.

Benefits of Credit Unions

Lower Fees and Better Rates: Because they’re not beholden to shareholders, credit unions can offer lower interest rates on loans, higher returns on savings, and fewer fees.
Member-Focused Services: Credit unions prioritize service and financial education. Many offer tailored support for low-income members, first-time borrowers, or those rebuilding credit.
Community Reinvestment: Profits are reinvested into the community through loans for local businesses, support for community projects, and fair lending practices.
Ethical Banking: Many credit unions make socially responsible investment choices, avoiding funding harmful industries and focusing on sustainability and equity.

How to Join or Support a Credit Union

Becoming part of a credit union is simple and can be a powerful way to support your local community or its organizations.

Find a Credit Union:

Use the National Credit Union Administration’s (NCUA) search tool to find credit unions near you.
Check eligibility: many credit unions are open to residents of specific regions, workers in certain fields, or members of community organizations.

Support the Credit Union Movement:

Move your money from big banks to credit unions.
Advocate for policies that strengthen credit unions, such as expanding their lending authority or simplifying chartering for new credit unions.
Promote financial literacy and access through local initiatives connected to credit unions.

By banking with institutions that reflect cooperative values, we can reclaim finance as a tool for empowerment and justice, transforming a traditionally predatory system into one that serves people over profit.

Other Solidarity Economy Initiatives

While worker cooperatives and credit unions are cornerstone institutions of the solidarity economy, many other initiatives also embody its values of community control, mutual aid, sustainability, and democratic participation. These grassroots models offer practical alternatives to capitalist structures and help build more resilient, equitable communities.

Community Land Trusts (CLTs)

Community Land Trusts are nonprofit organizations that acquire and hold land in trust for the benefit of a community. Unlike private ownership, CLTs ensure that land is used for permanent affordability and community good, such as housing, urban agriculture, or commercial space.

Why They Matter:

Prevent Displacement: CLTs protect against gentrification and speculative real estate markets by keeping housing prices affordable over the long term.
Local Control: Decisions about land use are made by community members, not absentee landlords or developers.
Stability and Equity: Residents can build equity and security without being subject to volatile market forces.

Community Supported Agriculture (CSA)

CSA programs create direct relationships between farmers and consumers. Members pay a seasonal fee upfront in exchange for a share of the harvest, providing farmers with stable income and consumers with fresh, local food.

Benefits of CSAs:

Support Small-Scale Farmers: Farmers receive fair compensation without relying on middlemen.
Sustainable Agriculture: CSAs often prioritize organic, regenerative, and environmentally responsible practices.
Food Justice: Some CSAs offer sliding-scale fees or subsidized shares to make healthy food accessible to low-income families.

Mutual Aid Networks

Mutual aid is the voluntary, reciprocal exchange of resources and services for mutual benefit – a practice deeply rooted in working-class and marginalized communities. Mutual aid networks are decentralized, community-driven efforts that meet immediate needs and build long-term solidarity.

Examples of Mutual Aid:

Organizing food or supply distribution during crises.
Offering childcare, housing support, or transportation to neighbors.
Forming defense collectives for legal aid or eviction protection.

These networks operate outside formal institutions, relying on trust, solidarity, and shared responsibility rather than charity or profit.

Time Banks and Barter Systems

Time banks allow individuals to exchange services using time as currency, where an hour of work earns an hour of help in return, regardless of the task. Barter systems enable people to swap goods and services without money.

Why These Systems Matter:

Value All Labor Equally: Whether it's tutoring, cooking, or carpentry, every hour is worth the same.
Strengthen Community Bonds: Participants build deeper connections and reciprocity within their communities.
Reduce Dependence on Capitalist Markets: These systems challenge the commodification of labor and promote resource sharing.

Together, these initiatives demonstrate the creativity and practicality of the solidarity economy. They show that another way of living and organizing is not only possible but already underway – rooted in values that center around people, the planet, and participation.

Getting Involved in the Solidarity Economy

Building a solidarity economy isn’t just an abstract ideal; it’s a tangible project that anyone can join. Whether you’re looking to shift where you bank, how you work, or how you support your neighbors, there are countless ways to plug into this growing movement. Here’s how you can start making change from the ground up.

Finding Local Initiatives

The solidarity economy thrives at the local level, where people come together to create alternatives that serve their communities.

Online Directories & Networks: Use tools like US Solidarity Economy Network, Co-op Directory, or Shareable.net to find co-ops, land trusts, CSAs, and mutual aid projects in your area.
Community Centers and Local Events: Attend local workshops, shop farmers markets, and organize meetings to connect with like-minded individuals and groups.
Ask Around: Sometimes, the best leads come from conversations with neighbors, activists, or community organizations already doing the work.

Supporting Solidarity Economy Businesses

You can vote with your wallet by supporting businesses that align with solidarity values.

Buy from Worker Cooperatives: Support businesses owned and run by their workers. Look for the “worker co-op” designation or check cooperative directories.
Bank with Credit Unions: Move your money to a member-owned credit union that invests in community development rather than corporate profits.
Join CSAs or Co-op Grocery Stores: Support local food systems and sustainable agriculture while building closer ties to your food producers.

These choices might seem small, but collectively, they shift power away from exploitative systems and toward community control.

Advocating for Policy Change

Individual action is important, but so is changing the rules that shape our economy.

Demand Public Support for Cooperatives: Advocate for public funding, startup grants, and technical assistance programs that help new co-ops get off the ground.
Push for Tax Incentives and Legal Reforms: Support policies that recognize and prioritize solidarity economy businesses.
Engage with Local Government: Encourage city councils or economic development offices to support community land trusts, CSAs, and mutual aid hubs.

Transformative change requires organizing at every level, from grassroots to government.

Building Community and Networks

Solidarity is a social practice. To thrive, the solidarity economy needs networks of trust, mutual support, and shared purpose.

Start a Reading or Discussion Group: Learn more about solidarity economics and discuss how to apply these principles locally.
Form or Join a Mutual Aid Group: Help build systems of care within your neighborhood.
Collaborate Across Movements: The solidarity economy intersects with movements for racial justice, climate action, housing rights, and more. Join forces to build collective power.

Getting involved means becoming part of a broader movement for systemic change – one grounded in cooperation, equity, and community resilience.

Building a More Just and Sustainable Future

The solidarity economy offers more than a critique of capitalism; it offers a vision of what can come next. Rooted in cooperation, equity, and sustainability, it challenges the profit-driven logic of our current system and instead prioritizes human and ecological wellbeing. From worker-owned cooperatives and credit unions to community land trusts and mutual aid networks, the solidarity economy gives us real-world tools to build a society that serves people, not profits.

This isn't just idealism. It's a practical pathway toward a more just, democratic, and resilient future. Every co-op started, every dollar moved to a credit union, every hour shared in mutual aid is a step away from an extractive economy and toward a regenerative one.

But these changes don’t happen in isolation. They require collective action, community engagement, and bold imagination. By participating in solidarity economy initiatives, advocating for supportive policies, and building networks of trust and care, we lay the foundation for a post-capitalist world that honors dignity, democracy, and shared prosperity.

If you believe another world is possible, start building it locally, collectively, and today.

Support and join solidarity-based institutions in your community.
Educate others about the alternatives that already exist.
Organize, advocate, and collaborate to grow this movement from the ground up.

The solidarity economy isn’t just about changing how we work, bank, or eat; it’s about transforming how we live together.