MAG 3 -Padova : an eco-pacifist financing scheme for alternative economy

MAG 3 was founded in June 1986. It is a cooperative promoting an alternative saving and financing scheme aimed at supporting ecological sustainable projects and activities in favour of underprivileged people in the Veneto region (Northern Italy). Over the years MAG 3 has supported more than 20 cooperatives and associations (over 150 employed people)and has a total budget of more than 1.500 million Lire (around 1 million US $). MAG 3 is run on a voluntary basis. It also cooperates with CTM-MAG (see fiche)for consultancy work on fiscal and project development matters.

In order to keep members informed, MAG 3 publishes a newsletter and "Gazzetta Mag" a review of the cooperative’s members articles and opinions. Members take part in training courses and in 3/4 informal general meetings a year, as well as the official meetings for discussing the budget and formal matters. MAG 3 also has a close relationship with local environmentalist groups.

Among the organizations that have received Mag 3 financial support in the first six years are: cooperatives producing or selling biological agricultural products, craftworkers, communities housing young marginalised people and the disabled, cooperatives helping immigrants find proper housing, organizations creating job opportunities for the mentally handicapped; but also removal agencies, theatre groups, campsites for social tourism etc.

In principle there is no quantitative limit to a loan. Organisations have to offer guarantees for repayment. All MAG 3’s profits come from the interest on loans. MAG 3 does not provide any other service besides the financial scheme for its member cooperatives. In the future it wants to group financial activities together into some main sectors such as organic farming, social solidarity, housing solidarity activities as an alternative to the dominant housing model etc.

It has a social capital of 8 million Lire (around 5,300 US $), 130 members and a fund of 36 million Lire (around 24,000 US $).