Is it possible to build an economy that works for everyone and not just for a few? In a world where economic gaps seem to grow larger every day, the need to rethink the system is urgent. But is it possible to create a more inclusive and just economic model for all?

Ray Dalio, in his famous video "How the Economic Machine Works," offers an accessible yet profound explanation of how credit works in the economy. According to Dalio, credit is the ability to spend beyond what one earns, thanks to an agreement between the borrower and the lender, in which the borrower promises to repay the money in the future. Dalio points out that most of the money circulating in the modern economy is actually credit, not physical money, which significantly increases purchasing power in the short term but creates economic cycles.

Credit is a powerful tool for driving economic growth because it allows people and businesses to invest in productive resources that increase future income. For example, a farmer who takes out a loan to buy a tractor can generate more income, which allows him to repay the loan and improve his standard of living. However, Dalio warns that credit becomes a problem when used to finance excessive consumption, leading to an unsustainable accumulation of debt that can trigger financial crises.

Karl Marx, in his work Capital (1867), devoted a deep analysis to the role of credit in the capitalist economy. According to Marx, credit has a double edge: on one hand, it allows capitalists to expand production by acquiring additional means of production; on the other hand, credit can be used for speculation and to fuel financial bubbles, which inevitably leads to economic crises. As Marx notes, "the credit system accelerates capitalist accumulation" and, at the same time, deepens inequalities by concentrating financial power in the hands of a few: "Credit accelerates the material development of the productive forces and the establishment of the world market, but it also sharpens the internal contradictions of the capitalist mode of production" (Capital, Vol. III, 1867).

These warnings about the dangers of credit in the hands of traditional capitalist systems have been confirmed throughout history, especially regarding marginalized communities. For much of the 20th century, access to formal credit was restricted to those with sufficient collateral and capital to participate in the financial system. This left out millions of people living in poverty who lacked the resources to access conventional loans. It is in this context that efforts have emerged to develop alternative financing models that promote financial inclusion.

The Beginning and History of Microfinance

One of the most influential projects in this regard was initiated by Muhammad Yunus in the 1970s with the creation of the Grameen Bank in Bangladesh. Yunus, an economist deeply committed to eradicating poverty, conceived the concept of microcredits—small loans given to people who do not have access to traditional financial institutions. The success of the Grameen Bank not only transformed the lives of millions of people but also demonstrated that marginalized communities, when given the right opportunity, are fully capable of managing loans and developing their own means of livelihood. As Yunus stated, "Credit is not a privilege, but a human right" (Creating a World Without Poverty, 2007).

Yunus' model was pioneering in the field of microfinance, and its impact was so profound that in 2006 he was awarded the Nobel Peace Prize. His approach not only provided capital to people excluded from the financial system, but also created a network of community support, fostering cooperation and joint growth among borrowers. This model demonstrated that credit, when used inclusively and cooperatively, can be a driving force for sustainable economic development.

Despite the successes of these projects, it is important to highlight that credit alone is not enough to achieve the economic and social transformation of communities. Access to credit must be accompanied by financial education and a framework that fosters social cohesion and solidarity among participants. In many cases, the lack of knowledge on how to manage financial resources has led beneficiaries of microcredits to end up in situations of excessive debt, or for projects to fail to achieve the expected sustainability. For this reason, more recent projects have incorporated financial education as an essential component of any financial inclusion initiative.

Birth of A Social Alternative

It is in this context that "A Social Alternative" emerges as a proposal that integrates the lessons learned from previous projects, but with a distinctive focus on participatory action intervention. Inspired by the lessons of Yunus and other pioneers of microfinance, "A Social Alternative" not only provides collective credit to marginalized communities but also promotes financial education and the active participation of community members in every step of the process. This model of collective credit is designed to address not only the lack of access to credit but also the social and structural barriers that perpetuate financial exclusion.

Credit is one of the most powerful tools for transforming people's realities, but only if it is used responsibly and purposefully. From my perspective, based on my work with vulnerable communities, I have learned that the true potential of credit lies not simply in giving money, but in educating people to use it in a way that generates growth.

Throughout my visits to various communities, I have witnessed the devastating consequences that poorly managed credit can have. For this reason, I firmly believe that financial education is not a luxury but a necessity. Without this education, even the best credit becomes an unsustainable burden, perpetuating the cycle of poverty. My mission with "A Social Alternative" is to break that cycle, providing not only access to collective credit but also the necessary tools to manage it effectively.

Every door we knock on is not just another survey; it is an opportunity to sow change. Every conversation I have with community members reinforces my belief that fair access to credit is a fundamental step toward social cohesion and economic development. However, my goal is not only to offer financial solutions but to create a model that rebuilds the social fabric, one that is based on trust and community cooperation.

"A Social Alternative" represents a new way of thinking about credit: not as a mere economic exchange, but as a tool for empowerment and transformation. My vision is to build an economy where financial tools are accessible to everyone, an economy where each person has the opportunity to prosper and build their future. Credit, when used to create capacity rather than dependence, is the foundation for a moral economy.

In this sense, "A Social Alternative" is more than just a project. It is a step toward building an inclusive economy, where no one is left behind, and where communities work together to generate shared prosperity through a cooperative model, enabling them to compete with the big players who dominate customer preferences. The goal is also, in this sense, to develop a self-sufficient economy capable of competing in global markets. Today, it is these large capital entities that dominate markets, and my struggle is to reduce the economic dependence on these capitalists so that money flows for everyone, not just remains in a few hands.

"A Social Alternative" is a project whose main goal is to promote financial inclusion in marginalized communities through a model of collective credit and financial education, with the purpose of empowering individuals to create and manage their own means of livelihood, while strengthening social cohesion within their communities. This model addresses two fundamental structural problems: social fragmentation and exclusion from the financial system in impoverished areas.

The project is based on the idea that when people work together and acquire solid financial knowledge, they can create sustainable microenterprises that not only improve their lives but also generate long-term economic growth. Credit must be a tool for transformation, not just a means of survival. When communities learn to manage their resources, they are able to change their future.

"A Social Alternative" follows an intervention plan organized into 12 key steps, divided into two important phases: the Phase of Trust and Participation and the Phase of Implementation and Sustainability. Each phase is designed to ensure that the communities involved not only gain access to credit but also the necessary training to manage those resources effectively, creating a long-term impact.

Follow Financial Cohesion

If this project has sparked your curiosity, I invite you to delve deeper into how "A Social Alternative" could change the reality of marginalized communities. Fair access to credit is not just an ideal; it is a possible reality when accompanied by financial education and social cohesion. However, the topics of financial inclusion and community economic development are vast and complex, and go far beyond what we have discussed in "A Social Alternative." To deepen these topics, I invite you to explore the research of economists and pioneers who have revolutionized the field, such as Muhammad Yunus and his microcredit model (I also take this space to congratulate Professor Yunus for leading the new internal government of Bangladesh after a student-led movement succeeded in overthrowing a 15-year autocracy, with former Prime Minister Sheikh Hasina seeking political asylum in India. Best of luck to Professor Yunus in his mission), or the research of Thorsten Beck on the impact of financial services on emerging economies. Other authors, such as Jonathan Morduch, have also researched the effects of microfinance on sustainable development. Reading these sources will provide you with a broader view of the challenges and opportunities in the pursuit of a more inclusive and collaborative economy.

I deeply appreciate you taking the time to learn more about "A Social Alternative", the first step in building a transformative project focused on financial inclusion and social cohesion. Through our platform, Financial Cohesion, we will be developing the day-to-day of "A Social Alternative", exploring in-depth the challenges and opportunities faced by marginalized communities. Additionally, we will offer detailed analysis on topics such as geopolitics, macroeconomics, and the most relevant dynamics of the economic environment in Mexico. We will also focus on key aspects like personal finance, socio-economic policies, and the evolution of sustainability in the global economic realm. Finally, we will share "tax hacks" related to Mexican legislation that will help you better understand this topic. If you wish to stay up-to-date with our publications, I invite you to subscribe to receive notifications of the articles we will post 2 or 3 times a week. Thank you once again for your interest in this project. Toward a moral economy.