A powerful social sector is needed now, more than ever, says multi-millionaire financier Sir Ronald Cohen in today’s UK Telegraph. And a strong social sector needs a reliable financial base. Social Finance UK has been a leader in developing practical strategies toincrease the access to finances for the non-profit and charitable sector. “We want to connect the capital markets to the social sector.”
“The impact of the recent crisis on people’s consciousness has emphasised the importance of dealing with the social consequences of the [capitalist] system,” he said. “I think societies everywhere will come to the conclusion that an important part of the capitalist system is having a powerful social sector to address social issues, because government doesn’t have the resources. It is not enough to increase the standard of living at the high end. It is right at the same time to worry about those who are left behind.”
In Growing Unequal, the OECD has documented that sharp cuts in social spending combined with tax cuts led to an increase in income inequality and poverty in Canada over the past decade. Canada is behind the UK and the US in strengthening the financial capacity of the non-profit sector.