Programme :
Presentation Paper :
Social Capital and Social Enterprise:
A Complementary Strategy for Sustainable Development of Self Help
Organizations of People with Disabilities* [1]
Joseph Kwok[2]
Introduction
Self help organizations of people with disabilities (SHOPs) is one of the
key policy targets of Biwako Millennium Framework (BMF)[3],
which states that,
"Governments, international funding agencies and non-governmental
organizations (NGOs) should, by 2004, establish policies with the requisite
resource allocations to support the development and formation of self-help
organizations of persons with disabilities in all areas, and with a specific
focus on slum and rural dwellers. Governments should take steps to ensure
the formation of parents associations at local levels by the year 2005 and
federate them at the national level by year 2010."
Further, BMG sets out an action agenda for SHOPs that they
"…..should develop programmes for capacity-building to empower their
members, including youth and women with disabilities, to take consultative
and leadership roles in the community at large as well as in their own
organizations and enable them to serve as trainers in the development of
leadership and management skills of members of self-help organizations."
Since the promulgation of BMF by UN ESCAP in 2003, there have been few
attempts to ascertain the degree of achievement of the key policy target
about SHOPs, and monitor the implementation of the related action agenda. It
remains unclear whether SHOPs have the required resources and capacity to
organize capacity building programmes which are needed for any meaningful
impacts on leadership and organizational development, as well as on
resources generation. It is even more uncertain whether SHOPs in the region
have established effective strategies contributing to achieving sustainable
development in furthering the policy targets as stated in BMF.
While governments in the region have replied to ESCAP questionnaire[4]
that supports have been forthcoming for SHOPs, it still remains to be
answered whether such support is adequate in terms of human, financial and
capital resources that would contribute meaningfully to enable SHOPs to
achieve the BMF policy and action targets. Given the rapidly changing
political, social and economic environment, it is not surprise that since
governments are pressed with a range of urgent action targets, including
peace keeping, natural disaster and epidemic health issues, those related to
SHOPs are unlikely to be accorded high national priority. Among related
intergovernmental bilateral development programmes, it is pleasing to note
the effective and continued intervention of the Asian and Pacific Centre on
Disability, a bilateral project of Japan and Thailand in support of BMF,
which has a focus in providing capacity building support to SHOPs. In the
non-governmental sector, there are occasional reports about development
assistance from some international bodies. The impact of these rather ad hoc
and usually short term intervention from international NGO development
agencies again remains to be studied.
Given the very large population of disabled people in the Region and
their widely dispersed geographical coverage, it is certain that the input
from both governments and regional development agencies is far from adequate
to make meaningful impact to the entire disabled population.
This paper discusses a complementary strategy that some SHOPs have been
pursuing through social capital investment and social enterprise, so as to
achieving self-sufficiency in sustainable organizational development. This
paper starts with a discussion on the evolving characteristics of SHOPs and
their relative positioning in the society, and discusses the relevance of
social capital investment as a critical factor for SHOPs to build social
enterprises. The paper in conclusion attempts to recommend some regional
intervention for relevant and interested inter-governmental and
non-governmental platforms.
PERSPECTIVES OF SELF-HELP ORGANIZATIONS OF PEOPLE WITH DISABILITIES (SHOPs)[5]
SHOPs have been established all over the world long before the
recognition and support from the government. SHOPs generate processes of
creation, empathetic emotional and mutual peer support, experiential
information, sharing network, new culture, new ideology and new identity. To
some extent, the formation and increase of self-help groups is a response to
dissatisfaction of traditional professional services.
The period of immediate post-world war II years and in the early 1950s,
saw the beginning of more influential self-help groups of people with
disabilities both in the East and in the West, for example those formed
among veterans with disabilities. The parents of children with disabilities
and illness formed their own support groups to call public and professional
attention to their child's neglected welfare and needs[6].
In late 1960s and 1970s, women's self-help advocacy movements were becoming
more visible. The self-help covered a wide range of practices in these
groups. It ranged from consciousness raising groups to health movement, and
to large-scale social and political issues. Rights based social movements of
women, and people with disabilities, have become the cornerstones of present
day self-help advocacy movement. In the twenty-first century, self-help
groups not only gain solid grounds in local and national levels, it also
receives global and political attention.
A United Nations' Perspective on SHOPs
The formation of self-help organizations of people with disabilities have
increased all over the world since the proclamation of the International
Year of the Disabled Persons in 1981. The increase has been a positive move
from the disability community advocating their rights, and a strong response
to the Year's theme: full participation and equal opportunities for persons
with disabilities. SHOPs are formally recognized on the agenda of United
Nations Standard Rules on the Equalization of Opportunities for Persons with
Disabilities. SHOPs are no longer a form of informal, natural resources from
the community, but regarded as a formal channel for state government to
actualize the inclusive approach for the needs and welfare of the persons
with disabilities. In 1993, United Nations has adopted a set of 22 Standard
Rules for actualizing the theme in action. It is an action recommendation to
every country to help persons with disabilities acquire full citizenship and
live fully in an inclusive society. Rule 18 states that it is the
responsibility of the state to support the formation and development of the
organizations of persons with disabilities.[7]
Towards a Multi-Dimensional Understanding of the Study of SHOPs
In spite of the world's growing attention and interests in SHOPs, there
have been few studies to explore the multi-dimensional nature of SHOPs.
SHOPs can be analyzed in terms of their common and varying characteristics.
Their common characteristics, found in many cultures and geographic
boundaries, include the following: (1) SHOPs are led or governed by members
with disabilities, including their family carers and relatives; (2) their
members share a common problem or experience, or a common challenge; and (3)
they aim to promote mutual benefit in a form of free reciprocal help,
experiential understanding, self-determination, and self-empowerment.
SHOPs' varying characteristics are found in many areas. For example: (1)
the degree of involvement of non-disabled members such as professionals, and
governmental organizations (GOs) and non-governmental organizations (NGOs);
(2) bureaucratic and hierarchical structure; (3) membership size and
coverage such as disability types and geographical areas; (4) benefits to
members and non-members, services provisions and types, complexity of
programme and philosophy; (5) role of advocacy concerning disability issues;
and (6) alliances with other advocacy groups in civic issues and social
change orientations. In real life, not all characteristics of self-help can
be found in any one SHOP.
CRITICAL FACTORS AFFECTING THE DEVELOPMENT OF SHOPs
(1) Organization and leadership: A key characteristic
of SHOPs is that people with disabilities own them. This characteristic is
normally written into their organizations' rules and regulations,
particularly in membership criteria and leadership structures. Otherwise,
SHOPs would share similar organizational characteristics as other
traditional service organizations. If their government administration
permits, they would register as an NGO just like other registered NGOs in
the country, including characteristics of bureaucratization and
professionalization. Frequently the organizations become national, followed
by the development of branch or regional offices. SHOPs may sometimes have
difficulty to balance their roles as advocate and a service provider. SHOPs'
services start on the premises to challenge ineffective NGOs and GOs.
Increasingly they are also dependent upon the government as well as on the
private sector to support their services. This poses a paradox for
self-help.
(2) Relationship with partnership organizations: SHOPs have a
relatively young history as compared to other traditional NGOs. Their
formation is usually supported by a sponsor or a catalyst, which may be a
key traditional NGO or GO in the field of disability. However, the
relationship between SHOPs and their traditional key partner is mixed with
acceptance and challenges, complementary missions and contrary expectations,
as well as between alliances and oppositions.
(3) Relationship with the society at large: SHOPs could
be studied as civic leadership development, and their roles in creating a
more caring, civil society. Similarly, the negative aspects of SHOPs that
deviate from a civil society should also be studied. In Asia, it will be
useful to identify strategies that are effective in a given political and
cultural contexts.. The following questions are considered to have
theoretical interests for further deliberations: (1) Will a collaborative
route be more effective for NGOs in a highly participatory democratic
culture? (2) Will a complementary strategy be more effective in a
civil society characterized by a diversity of power centers? (3) Will a
confrontational approach by NGOs be more influential in a multiparty
electoral system composed of many power centers? (4) Will a
consciousness-raising strategy work best within a state that protects
political and civil rights? (5) Will investment in social capital a more
critical factor affecting sustainability of SHOPs.
(4) Disability as a human right issue in a
globalization process and SHOPs as disability rights advocate: The
proclamation of the International Year of the Disabled Persons (IYDP) in
1981, the adoption of the United Nations Decade of Disabled Persons, 1983 –
1992, the World Program of Action Concerning Disabled Persons, and in this
Region, the BMF Towards a Rights Based, Barrier Free, and Inclusive society,
have signified a major shift in the attitude of society toward disability.
The most important and recent UN initiative in supporting disability as a
basic human rights issue is of course the adoption of the International
Convention on the Rights of Persons with Disabilities in August 2006 after
six years' intensive debates and negotiations.
SHOPS AS ACTORS IN CIVIL AND INCLUSION SOCIETY
In seeking complementary strategies to achieve sustainable development
for SHOPs, a more in-depth analysis of SHOPs as an actor in civil and
inclusion society is necessary. In this regard, Edwards et al. (1999:120)[8],
in association with the NGO unit of the World Bank, caution that
"there is a tendency among some NGOs to focus on global advocacy to the
exclusion of the national-level processes of state-society relations that
underpin the ability of any country to pursue progressive goals in an
integrated economy, and the task of rebuilding government capacity to
negotiate, monitor and regulate global regimes; the importance of pro-poor
alignments in civil society and between civil society, business and
government; and the role of domestic civic groups in combating corruption,
pressing for institutional accountability and preserving a social consensus
in favour of economic reform."
Edwards et al. (1999:130) go further to suggest four key challenges for
NGOs as actors in civil society:
- how to mobilize a genuinely
inclusive civil society at every level of the world system;
- how to hold other
institutions accountable for their actions and ensure that they respond to
social and environmental needs;
- how to ensure that
international regimes are both implemented effectively and work to the
benefit of poor people and poor countries; and
- how to ensure that gains made
at the global level are translated into concrete benefits at the
grass-roots.
Civil society as used by the NGO unit of the World Bank covers a broader
grouping of non-state, non-market organizations that include NGOs, community
groups, churches, social movements, trade unions, business associations,
political parties and think-tanks. SHOPs, other than being self-advocates,
have to function like other NGOs in providing services to their members.
Increasingly their support from public funding is subject to risks and
opportunities within a market economy – to be competitive and to employ
techniques of business; but at the same time upholding their uniqueness in
cherishing the non-market values they hold.
For SHOPs, the manner they cultivate social capital among its general
membership, as well as from the network relationship with other actors of
civic society, would have an important impact on the achievement of the
ultimate objective of equality and full participation for people with
disabilities. The social networks generated by SHOPs would constitute an
important form of ‘social capital' in the sense that they increase the trust
that individuals feel towards others and enhance their capacity to join
together in collective action to resolve common problems or to ensure that
governments address such problems. Trust is however difficult to establish,
easy to block and is constantly under threat. The art of trusting has in the
modern era become a complex process, mixed with uncertainly in many areas.
Indeed, this trust has been challenged by the growth of uncertainty most
notably in ecology, finance and the economy.
SHOPs need to take note their roles in the making of civil society when
making their demands. Generally speaking demands that support civil society
would in term receive support from other actors in civil society and are
likely to succeed. Demands that support their specific interests not in
harmony with the civil society would weaken the civil society and in turn
receive less support from civil society, and thus less likely to succeed.
There are good indications that SHOPs in various Asian countries place
emphasis on their network with civic groups, NGOs and GOs, as well as the
business and the private sectors. SHOPs use such networks for multiple
purposes, including fund raising, lobbying and mission promotion. Above all
SHOPs will have to depend on such networks to purse the ultimate objective
of an inclusive society for people with disabilities. SHOPs of developing
countries in Asia are in need of development aids from external sources,
including the global civil society. In order to realize such collaborations,
SHOPs have to demonstrate intellectual capital and organizational
infrastructure plus managerial skills that are required by donor
organizations. Furthermore they have to prove accountability.
SHOPs should not confine itself to the role of an interest group pursuing
only own interests, but more as a key stakeholder in civil society on
general issues. Such a phenomenon is being witnessed in some countries where
SHOPs work closely with the civil society on a range of societal issues,
such as poverty alleviation, women issue, health issue, environmental
pollution issue, and landmine issue.
SHOPS IN RELATION TO OTHER ACTOR IN CIVIL SOCIETY
While SHOPs, irrespective of its characteristics are recognized the
representative voice of disabled people and their families, their influence
on government decisions, particularly resources related decisions, are not
always effective. After all SHOPs are among the many similar organizations
of different interests backgrounds. Again because of this, only few
governments provide for recurrent organizing resources support to SHOPs.
Even infrastructure support, such as office and meeting places may not even
be available to meet SHOPs' needs. SHOPs will have to compete with other
grass-roots organizations or national level interests groups for limited
government budget.
At the grass-roots level, there is a tendency for more self-help groups
to emerge, being supported by health professionals and being encouraged by
mutual and voluntary help among members and their families, as they share
common situation and have acquired useful information. The range of
disabilities types also has been extending, particularly those close to
mental health situation and chronic illnesses.
SHOPs would gain much in learning from the Convention drafting process
through a multi-stakeholders involvement platform, which is an open platform
including all interested and concerned mainstream social services
organizations, civic organizations, human rights organizations, the private
sector and etc.
SOCIAL CAPITAL AND SHOP
The significance of social capital to development work has received
increasing attention from leading global organizations such as the World
Bank and OECD. The World Bank[9]
considers social capital to be a major factor affecting the sustainability
of its world poverty eradication programmes. OECD[10]
has also extended its interests from human capital to include social capital
and its impact on sustainable social development. A major related initiative
from Asia was the conference on "Social Capital, Social exclusion and the
East Asian crisis", from 5 to 7 November 2001 in Manila, jointly organized
by the World Bank and the Asian Development Bank, and financed by the Asia
Europe Meeting Trust Fund. Hong Kong, China was represented by the
author and a senior civil servant. In 2002, the Government of the Hong Kong
Special Administrative Region launched the Community Investment and
Inclusion Fund, which aims to support disadvantaged and marginalized groups
in society to build social capital in order to achieve social cohesion and
sustainable development of the society[11].
The study of Kwok et al.[12] is
among the few studies in Asia that analyzes the factors that shape the
development of self-help organizations and networks of people with
disabilities in Asia.
There is however not lack of leadership among development agencies in
promoting social capital. The Asian Development Bank has incorporated social
capital as a critical factor in its poverty alleviation programmes. The ADB[13]
framework for poverty reduction in relation to the UN Millennium Development
Goals has three pillars, namely: pro-poor, sustainable economic growth;
inclusive social development; and good governance. Within the framework of
the three pillars, interventions for poverty reduction can be short term
(such as those that sustain basic services to the poor); medium term (such
as targeted interventions); or long term (such as those that build human
resources, stimulate pro-poor growth, and encourage expansion of the private
sector). Within the pillar of inclusive social development, ADB recognizes
the following key factors: Human Capital, Population Policy, Gender and
Development, Social Capital, Social Protection. Under social capital, ADB
writes,
"When poverty is pronounced, social cohesion is often weak, and
communities suffer from conflict, marginalization, and exclusion. In such
cases, strong, proactive policies are required to reverse perceptions of
social and psychological inferiority, to foster a sense of empowerment, and
to create genuinely participatory institutions. Social capital and a more
inclusive society can be promoted through antidiscrimination legislation,
land reform, legal recognition of user groups, and accessible systems of
justice. Specific measures may be required to provide suitable social
services and equitable access to economic opportunity for ethnic
minorities."
The World Bank has continued to assume the key leadership in promoting
social capital among development agencies and nations. The World Bank's
interests in social capital was based on the research findings of Putnam[14],
that support the thesis that social capital contributes to the ability of a
society to work together, accomplish goals and increase its productivity;
therefore a precondition for economic development and effective government.
OECD, another major development organization, studies social capital among
its member countries and find that sustainable development is contributed by
social capital comprising ‘networks together with shared norms, values, and
understandings that facilitate co-operation within or among groups'.
According to the World Bank, social capital refers to the institutions,
relationships, and norms that shape the quality and quantity of a society's
social interactions. It is considered as a critical factor for poverty
alleviation and sustainable human and economic development. Because of the
significant impact of social capital on poverty alleviation, the World Bank
has created a special web site on social capital.
In particular, the World Bank considers social capital as a significant
factor for enhancing the quality, effectiveness and sustainability of
Community-driven Development (CDD) operations. For implementation purpose,
the
Social Capital Implementation Framework (SCIF) was developed. Under SCIF,
the concept of Social Capital is broken down to five sub-categories for
operational purposes. These sub-categories capture both the structural and
cognitive forms of social capital. The five dimensions of social capital
include: Groups and networks; Trust and Solidarity; Collective Action and
Cooperation; Social Cohesion and Inclusion; and Information and
Communication. It would be useful to note from the web site that the World
Bank has at least two major social capital related CDD projects in Asia, one
in the Philippines and the other in Thailand.
World Bank conceptualizes social capital to comprise narrow to inclusive
understandings. A narrow understanding focuses social capital on horizontal
associations between people, consisting of social networks and associated
norms that have an effect on community productivity and well-being. Such
social capital may have a negative impact on social and economic development
if communities, groups or networks which are isolated, parochial, or working
at cross-purposes to society's collective interests (e.g. drug cartels,
corruption rackets). A broader
understanding of social capital accounts for both the positive and negative
aspects by including vertical as well as horizontal associations between
people, and includes behavior within and among organizations, such as firms.
This view recognizes that horizontal ties are needed to give communities a
sense of identity and common purpose, but also stresses that without
"bridging" ties that transcend various social divides (e.g. religion,
ethnicity, socio-economic status), horizontal ties can become a basis for
the pursuit of narrow interests, and can actively preclude access to
information and material resources that would otherwise be of great
assistance to the community (e.g. tips about job vacancies, access to
credit). The broadest and most encompassing view of
social capital includes the social and political environment that shapes
social structure and enables norms to develop. This view supports the thesis
that economic and social development thrives when representatives of the
state, the corporate sector, and civil society create forums in and through
which they can identify and pursue common goals
The World Bank has integrated social capital into its three key strategic
areas project operation: (a) participation: local
participation in project design, implementation and evaluation ensure that
projects and policies make sense within the local context and fosters the
support and ownership necessary to sustain the project once development
workers are gone; (b) policy: preserve, promote and invest
in social capital, and fostering cross-sectoral partnerships for
development; Promote social capital research and learning; and (c)
partnerships: a tri-sectoral partnership (including the
public, private and non-profit sectors) to demonstrate that when the three
sectors work together they bring different skills to a common goal which
provides "win-win" benefits across a broad number of projects.
SOCIAL ENTERPRISE, SOCIAL CAPITAL AND SHOP
Social capital and social enterprise have theoretical and practical
interrelatedness. A private enterprise is primarily profit driven, and the
sense of corporate social accountability varies. A social enterprise is
primarily mission driven, while surviving and progressing on
self-sufficiency and market sustainability.
SHOPs are competing for policy support and public resources with other
disadvantaged groups, e.g. unemployed and out-of-class youth, unemployed
women, unemployed adults of middle age, racial minorities, or similar. While
government is more willing to listen to the voice of self-help groups, its
readiness to grant of public resources to SHOPs is unlikely to be of the
same or high magnitude. In a democratic society, more SHOPs are formed,
around increasing number of new impairments, new interest groups, and new
parents groups. There is no indication that governments are active in
federating SHOPs into one big national network. In reality, many networks
are formed on own initiatives, particularly parents groups, and are asking
for government's equal and fair attention.
SHOPs may perform multi-functions, such as providing capacity building,
leadership development and services development. SHOPs function in relation
to government as contractor of service, as advocate in policy development,
and to development and international NGO funding agencies as project
operators. Some SHOPs in the region, including those in urban and rural
areas, have become more interested to enter into income generating and
enterprise activities. SHOPs are in fact responding to some governments'
social enterprise initiatives in poverty alleviation. SHOPs expect
successful social enterprise to serve a number of functions, including:
networking and social capital building, work and employment opportunities
for its members, job training, leadership development, and contributing to
organization's financial sustainability.
Social enterprise generally refers to income generating organizations
operated like a private business but which serves a primary social purpose
of supporting the rights and welfare of disadvantaged groups. Social
enterprise may be operated by a government, an NGO or a private business.
Kwok et al.[15] study two
cases of SHOPs which engage in social enterprises, one from Manila and the
other from Taipei, Taiwan Province of China. The following preliminary
findings may offer some useful information in understanding the potentials
of SHOPs in benefiting from social enterprises through social capital
investment under an inclusive economic and social environment.
Affirmative government policies
In the Philippines, the government allocates 10% of its purchasing budget
for chairs and tables of public schools to cooperatives of persons with
disabilities. Cooperatives that meets the disability related criteria and
has the manufacturing capacity may bid for such government contracts. This
policy has a major effect to support social enterprises of SHOPs.
In Taiwan Province of China, there is a mandatory employment quota system
with a levy. Funds raised from the levy are used to provide subsidy to other
organizations in terms of wage subsidy to disabled employees over the quota
up a certain percentage. There is also another affirmative policy which
provides income subsidy to disadvantaged groups in their initial job
placement up to around 36 months, renewable every year subject to project
performance appraisal. The government also allocates a small percentage of
its purchase budget for products of sheltered workshops including those for
people with disabilities.
Social enterprises and social capital of the selected SHOPs
Experiences of the selected SHOP from the Philippines
In the Philippines, the cooperatives of persons with disabilities are
formally registered under the related cooperative ordinances. There is a
central body, which is the national federation of cooperatives of persons
with disabilities. The national body provides support to its local
cooperatives in capacity building, including technical training and also
funding support through development assistance from local and overseas
funding bodies. The national body has also a plan to nurture and develop
local cooperatives in all administrative areas of the Philippines.
The national body takes on the major task of negotiating with government
departments concerned for the restricted contract of building school chairs
and tables, in product design and research, in negotiating for raw materials
supply, in negotiating for credit lines from development agencies and
private organizations, in delivery of finished products, and in follow up
with government departments for payment. The national body will work with
local cooperatives which have the capacity to engage in the manufacturing
work, in building manufacturing workshops, and in recruitment and training
of disabled people to engage in business and manufacturing operations. The
restricted contract does not guarantee profitable business as the unit price
of the restricted contract will be affected by mainstream tendering
exercises which are highly competitive among large and major manufacturing
firms. The national body has also a major challenge in securing credit lines
to support the operation, as government payment of such contracts is usually
some months behind after delivery of goods.
The national body and local branches have been investing much of their
time and efforts in building positive networks with political leaders, with
central government departments, with development agencies and funding bodies
which offer loans to business for development concerns, to potential
customers such as private colleges and schools, with other organizations of
and for people with disabilities. The social networks developed by the
selected SHOP cut across many sectors.
One successful local cooperative which has the capacity to engage in
large scale manufacturing contracts, has demonstrated dedicated, committed
leadership with the required business expertise. Their social networks with
the government, the business community, and the civil society are highly
functional. Their leaders have been recognized in several local and national
wide award presentations. Their social enterprise has received affirmative
policy support from local government at least in providing low cost workshop
venue. Their products have received high commendations from their customers.
Their leaders, being alumni of local schools and colleges, have also the
informal networks in support of their business marketing. The membership of
the selected SHOP has gained both economic and social benefits from the
social enterprises. Some of the profits from the enterprises are used to
support community based rehabilitation services through reaching out teams
to other disabled people in need.
The national government has been putting up publicity TV campaigns as an
illustration of government's support for disabled people. The development
agencies such as development banks and NGO funding bodies are also happy as
the SHOP has proven to have good credit rating.
In spite of the high quality of social capital which supports the social
enterprise of the selected SHOP, its national and local bodies are not lack
of challenges, and business operation outlook is uncertain. First, the
restricted tender portion of government contracts is unstable and short
term, which cannot support long term job provision of the employees of the
SHOP. Second, the credit lines may not always be adequate, and for those
available, still carry a level of interest rate which requires very
efficient business operation. Third, the trend of decentralization of
government operation to regional levels has prevented the national body to
engage it contract tendering for its local branches, many of which does not
have the required financial and technical capacity to engage in such
manufacturing businesses.
To overcome the challenges and to pave the way for future development,
the national body is lobbying the government to accept its central role in
bidding the government's restricted contract. The national body is also
considering a major campaign to set up a trust fund which will provide the
financial credit support to its manufacturing arm.
Experiences of the selected SHOP from Taipei, Taiwan Province of China
The selected SHOP from Taipei, Taiwan Province of China was founded by a
highly respectable leader with disability back in the early 1980s. It
started with a small group of disabled people engaging in advocacy, has become now one of the largest organizations of and for people with
disabilities with branches all over Taiwan Province of China. It has now
over 2,500 employees and operates a range of services with primary focus on
people with disabilities. A large portion of its services are government
contracts. The leaders are dedicated Christians but the organization is not
affiliated to any church groups. The organization has set up a social
enterprise department to engage in a range of income generating activities,
which also provide job training and work to disabled employees. The ranges
of activities include special transport services, bottled waters and
stationeries bearing the SHOP name, sheltered workshop cum enterprise,
cafeteria, insurance, and call centre.
Some business operations are government contracts, e.g. the special
transport service from a local government. It got the first contract and
from the contract, it employed a good number of disabled drivers. The same
contract, however, was awarded to a commercial firm when it was up for
renewal because of bidding price consideration. The commercial firm's
service quality as shown in the second contract was heavily criticized by
disabled users, to the extent that the local government has pledged to
review its contract bidding criteria and process in the new round.
One of the largest business operations of the SHOP is its sheltered
workshop cum business. The workshop operates in partnership with some
private companies in the manufacturing of wheelchairs and assistive devices.
The workshop was built in one of worst earthquake disaster area in Taiwan
Province of China in recent history. The workshop was built and equipped
with disaster relief funds from government and private donations with a
primary purpose to support the livelihood of disaster victim.
The leaders and chief executives of the workshop, through their years of
positive network relationship with political leaders, central and local
governments, and the private sector, have been able to nurture a functional
partnership with all parties to support the operation of the workshop, which
has become one of the largest wheelchair manufacturing centres in Taiwan
Province of China. Its major job orders come from charity sales, e.g. from
government contracts for wheelchairs needed for bilateral development
projects, from private companies for children wheelchairs as its community
service project, from fundraising campaigns to involve college students in
disability awareness projects involving the use of wheelchairs. The
wheelchair project has acquired quality accreditation from international
bodies, and has entered into the private market as one of the keen
competitors. The wheelchair project is a SHOP driven project and products
are selling with the SHOP brand name. The wheelchair workshop benefits from
related government policies which support accredited sheltered workshops
e.g. income subsidy and job training of disabled employees, as well as
subvented social work staff.
The SHOP also engages in business partnership with concerned private
companies in marketing products that bear the brand name of the private
partners. The SHOP is functioning as a service operator receiving
commissions to support the salaries of the employees many of whom are
disabled, and the business operation. The private partners are primarily
interested in the high moral values of the SHOP in support of disadvantaged
and minority groups, and not so much concerned with monetary profits. The
private partner views that the high moral value of the SHOP and the
involvement of disabled employees match well the mission of the company's
products and support the healthy life style being pursed by its employees,
business partners and customers. In this regard, the SHOP benefits from
government affirmative policies in support of disabled employees through the
levy funds of the employment quota scheme, and special and time limited
grants to support employment of disadvantaged social groups. SHOP also
benefits from the business networks and expertise in support of the
operation. The private partners also provide a good source of volunteers
support and charity fundraising pools of people.
The realization of all these social enterprises is due to the vast social
networks of the leaders and organizers of SHOP, who have invested heavily in
building social capital across all sectors, including governmental, private
and religious sectors. The leaders are appointed to influential committees
of national and local governments. Its leaders, both paid and unpaid have
been recognized publicly for their contributions, and some are granted
outstanding national awards.
Like other businesses, and perhaps even more so, the SHOP has to face a
range of tough challenges in order to develop the sustainability of the
social enterprises. The SHOP driven wheelchair workshop because of its space
requirement is facing high workshop rentals. Similar private businesses have
already moved their manufacturing sites to China Mainland where land and
labour are much less costly. The SHOP wheelchair workshop not only has to
face factors of labour efficiency because of its high percentage of disabled
employees, but also other high operating costs. It is having a price
disadvantage to compete in the private market. Its job orders from charity
and restricted government contracts however are unstable and could not be a
long term solution.
The business driven partnership projects, while enjoying high brand name
status and high product and service quality, are facing labour efficiency
factors, as the operations have to employ more employees so as to match the
performance output requirement. The profit margins of all these operations
are still at low level, and sometimes even have to depend on donation
support to balance the books.
REFLECTIONS FROM THE TWO CASE ILLUSTRATIONS
The two selected cases illustrate the dynamic interaction among
government affirmative policy, development agencies, NGO funding bodies, the
private sector, with the SHOP as the key player bridging and linking all
interested and concerned sectors to develop and nurture social enterprises
in support of SHOP and its disabled members. The success of the two SHOPs to
a great extent relies on their active social networks and trust relationship
built across all sectors. The two cases share a common situation that they
do not have government funding for their continued and sustainable
development. Their future and further development is dependent on their own
making. They both share a common wish to nurture a sustainable social
enterprise which will in turn support the sustainable development of the
mother bodies.
Social enterprises are primarily businesses in nature although it holds a
high moral value. However such high moral value is not a guarantee for
running a successful and sustainable business. This high moral value instead
may in some situation render social enterprises less competitive in a market
economy which is subject to many competitive factors, including the global
economy advocated by the World Trade Organization. Furthermore, SHOPs
operated social enterprises may not have the capacity, such as the high
level physical, finance and human capital needed to respond proactively to
rapidly changing market conditions.
Social capital investment therefore becomes critical and strategic for
SHOPs than other kinds of businesses. With a strong social capital, SHOPs
may be able to survive through stormy market conditions. However there needs
to be an investment before SHOPs can generate positive social capital to
support its social enterprises. The investment has to come form SHOP itself
as well as other stakeholders both at the local, national as well as the
regional levels.
A COMPREHENSIVE AND PROACTIVE APPROACH TO SUPPORT SOCIAL CAPITAL
DEVELOPMENT FOR SHOPS
At local and national levels
At the national level, government affirmative policies in areas of
mandatory employment quota and levy, restricted tendering, earmarked
purchase budgets are good practices that are worthy for replication in other
areas of the Region. Such affirmative action will enhance disability
awareness in the private sector and development agencies (governmental or
non-governmental) and stimulate their interests in seeking or responding to
invitations of social enterprise partnership. Further affirmative policy in
providing continued and sustainable capacity building support to SHOPs
through government or government directed public funding should be
encouraged.
At the regional level
As the mid-point review of the Asian and Pacific Decade of Disabled
Persons is approaching, it is timely to consider developing comprehensive
and coordinated regional initiatives in building social capital which would
contribute to successful social enterprises of SHOPs. The regional
initiative would best be in the form of a tripartite platform for
development, involving UN agencies, the governments, the private sector and
the civil society, with a primary purpose to support SHOP's involvement in
social enterprises. The recently approved UN International Convention on the
Rights of People with Disabilities should find the regional tripartite
platform most helpful to support its implementation at both national and
local levels.
The World Bank and the Asian Development Bank are major development
agencies which have committed to a proactive social capital strategy for
poverty alleviation in the context of achieving the UN Millennium
Development Goals. The BMF has recognized social development as part of its
overall agenda for action, and brought in SHOPs as one of its policy
targets. The ILO and FAO, e.g. are among the leading UN agencies that have
already proven experiences in developing disability based tripartite
business councils for development, and in income generating projects. From
the private business sector, many multi-national corporations have already
demonstrated a sound understanding of the principles and practice of
diversity in its human resources management. A leading example is the Global
Diversity Network[16], formed
by a number of multi-national corporations including Barclays, BP, Cadbury
Schweppes, Deutsche Bank, Dow, Nokia, Philip Morris International, Shell,
Tyco and Unilever. Its Asia Pacific Working Group held a conference in April
2005 in Hong Kong, China (hosted by Dow) and the author was invited to give
a regional perspective on work and employment of people with disabilities.
The author being
invited to assist the organizing of the Network's second Asian workshop in
November 2006, will suggest a seminar topic on social enterprise and SHOPs,
and invite them to join hands with Asia-Pacific Disability Forum to seek a
possibility of holding a regional seminar during the high-level
intergovernmental meeting in 2007. There are also similar business networks
at national, regional and global levels pursuing good practices in diversity
practices. INGOs of and for people with disabilities are naturally key
players in this regional strategy. In particular the Asian Pacific Centre
for Disability and the Asia-Pacific Development Forum are well connected to
mobilize development assistance for SHOPs in areas of capacity building.
The suggested Regional Tripartite Platform for Sustainable Development
can play many useful roles including the following:
- to study and improve on affirmative policies in
support of social enterprises in relation to a rapidly changing global
economy,
- to identify the kind of businesses at the local level
which SHOPs have a better chance of success in developing into social
enterprises,
- to support capacity building programmes for SHOPs
at the regional level through provision of trainers and training packages,
particularly from the business partners, which will best suit dynamic
business operations,
- to facilitate networking of SHOPs at national and local
levels with national branches of multi-national corporations,
- to facility the networking of not for profit
development organizations supported by multi-national corporations with SHOPs in the development of social enterprises,
CONCLUSION
Social capital investment in support of social enterprise as a
complementary strategy for SHOPs to achieving self-sufficiency in
sustainable organizational development,
has witnessed some successful case stories in the Region. The paper proposes
a regional tripartite platform to pursue this complementary strategy,
involving multi-stakeholders with support from relevant inter-governmental
platforms in the Region.
In 2007, there will be a high-level intergovernmental meeting organized
by ESCAP to review the BMF implementation and to adopt the BMF plus Five, a
supplementary strategy for the later half of the Decade. A number of
important world and regional summit events are often accompanied by meetings
of very senior executives of leading business concerns, or professional
experts from the private sector. To replicate such good practices, a
development of the partnership with interested member governments, World
Bank and ADB, UN agencies, APCD and APDF to explore the possibility of the
proposed regional tripartite platform would be a good way forward.
Perhaps
invitations to large trust funds established and managed by regional leaders
from the private sector to take part in the partnership may bring in happy
surprises.
Thank you.
[1] This paper is
drawing on some preliminary findings of a study being conducted by the
author as principal investigator and which is supported by a research grant
from of City University of Hong Kong, project number: 7001571-640. The
author wishes also to acknowledge the support from his research assistance,
Ms. Emily Fung.
[2] Joseph Kwok, R.S.W.,
Ph.D., B.B.S., J.P. is Associate Professor of City University of Hong Kong.
He has long term and extensive involvement in disability activities in the
Region. He is currently the Chairman of the Government's high level
Rehabilitation Advisory Committee. He was awarded the Kazuo Itoga Memorial
Prize in 2006.
[3] United Nations
Economic and Social Commission for Asia and the Pacific (n.d.). Biwako
Millennium Framework (BMF). Retrieved 13 September 2006, from
http://www.unescap.org/esid/psis/disability/bmf/bmf.html
[4] United Nations Economic
and Social Commission for Asia and the Pacific (n.d.). Questionnaire on
the implementation of the Biwako Millennium Framework for Action towards an
Inclusive, Barrier-free and Rights-based Society for Persons with
Disabilities in Asia and the Pacific (BMF. Retrieved 13 September 2006,
from
http://www.unescap.org/esid/psis/disability/bmf/questionnaire%20form%202005.doc.
[5] The author has made
reference to the following research publication of which he was the
principal investigator: Kwok et al. (2002), Self-help organizations of
people with disabilities in Asia. Auburn House, Westport, USA.
[6] Katz, Alfred H. (1993)
Self-help in America: a social movement perspective. New York: Twayne
Publishers.
[7] United Nations (1994)
United Nations Standard Rules on the Equalization of Opportunities of
persons with Disabilities. New York: United Nations.
[8]Edwards M., Hulme, D., &
Wallace, T. (1999) "NGOs in a global future: marrying local delivery to
worldwide leverage." Public Administration and Development, 19, 117 –
136.
[9] World Bank (n. d.).
Social Capital. Retrieved 10 September 2006, from
http://web.worldbank.org/WBSITE/EXTERNAL/TOPICS/-EXTSOCIALDEVELOPMENT/EXTTSOCIALCAPITAL/-0,,menuPK:401021~pagePK:149018~piPK:149093~theSitePK:401015,00.html
[10] OECD (2001). The
well-being of nations: The role of human and social capital. Paris:
OECD.
[11] Health, Welfare and
Food Bureau (2002). Community Investment and Inclusion Fund: Application
Guide and Form. Hong Kong, China: Health, Welfare and Food Bureau
[12] Kwok, J.K.F., Chan,
R.K.H. and Chan, W.T. (2002) Self-Help Organizations of People with
Disabilities in Asia. CT: Auburn House.
[13] Asian Development Bank
(2004).Enhancing the Fight Against Poverty in Asia and the Pacific:
The Poverty Reduction Strategy of the Asian Development Bank.Retrieved
7 September 2006 from
http://www.adb.org/Documents/Policies/Poverty_Reduction/2004/foreword.asp
[14] Putnam, R. (1993).
Making Democracy Work: Civic Tradition in Modern Italy. Princeton, NJ:
Princeton University Press.
[15] These discussions are
based on preliminary findings of a study conducted by the author as
principal investigator and which is supported by a research grant of City
University of Hong Kong project number: 7001571-640.
[16] Global Diversity
Network (n.d.) Home page. Retrieved on 11 September 2006, from
http://www.globaldiversitynetwork.com/
*This paper has been prepared by Mr Kin Fun Joseph Kwok,
Regional Vice Chairman for Asia and the Pacific, Rehabilitation
International, and Associate Professor, Department of Applied Social
Studies, City University of Hong Kong, Hong Kong, China, for the Agents of
Change: Workshop on Self-help Organizations of Persons with Disabilities (SHOs),
Related Family and Parents Associations and Women with Disabilities towards
Biwako Plus Five, 18-20 October 2006, Bangkok. The paper has been reproduced
as submitted. The views expressed are those of the author and do not
necessarily reflect the views of the United Nations.
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