Newsletter XXXIV

The Unexpected Economics of Solidarity: Why Stronger Communities Drive Stronger Growth

The non-profit sector plays a role that is every bit as important as that of the state and the market. Since its earliest beginnings, it has helped address the shortcomings of both, strengthening the social fabric and fostering trust within communities. In many ways, its development was ahead of its time. From the remarkable legacy of Francesco Datini and the Venetian Scuole to the charitable lending institutions known as Monti di Pietà, history offers striking examples of how civic initiative anticipated modern welfare systems. The sector continues to thrive today. In the United States, it has grown steadily over the years and now accounts for around 10% of private-sector employment. In Italy, while smaller in scale and more concentrated in the North, it remains a vital source of social cohesion and community engagement. By strengthening social capital, the non-profit sector also contributes to economic progress. The relationship works both ways: stronger communities support economic development, while economic prosperity creates further opportunities for civic participation and collective action.

This document is available in italian only.