Theory Behind Econet Econet is a revenue generating private sector business based on a model standing in direct contrast to most government supported programs for the socially disadvantaged. The Econetmodel is termed an“Economically Centered Social Network"and the name is derived from this model. Econet is rooted in a systems-based socioeconomic organizational model, addressing the financial as well as the social needs of the underprivileged directly at the workplace in the context of the ongoing business activity (for explanation of systems theory click here).
Traditional Programs for the Socially Disadvantaged
Most programs for the socially disadvantaged in the United States are primarily based on a supportive psychosocial model. They are frequently dependent on government financial support and offer financial support in the form of welfare or social security disability and health benefits in the form of Medicaid or Medicare. Although helpful in alleviating many of the basic financial needs of the needy these programs have several major flaws:
They often create a cycle of dependency that is difficult to break once established
They are dependent on government and charitable support and are costly for the taxpayer
They are often seen by the people they serve as degrading and inadequate
They do not pro-actively or adequately address the fundamental need for self-reliance and growth
They do not directly address the social disconnection that is often fundamental to the most severely disadvantaged such as the homeless
Econet Techniques
In the past several decades there has been increasing stress on vocational initiatives. Programs such as workfare, for example, have been successful in getting some individuals back to work. However these jobs are often low-end with little possibility for advancement, especially in an individual suffering from a disability.
The Econet Model
The Econet model is depicted in the diagram above.
The Role of Business in EcoNet
The components of the Econet model are as follows:
Note: Not all features of Econet are currently operational (e.g., private health care & extensive social services), requiring a more substantial mobilization of the Econet model before they are in place
Economically Centered - Immediate provision of a job not benefits and entitlements should be the first intervention for the disadvantaged.
Social Network- Utilization of management techniques including small cohesive work groups (also called "quality circles") help to form a supportive social network at the workplace, something that is often deficient among the disadvantaged. They also help the business to run more efficiently. This enables Econet's products and services to be competitive in the marketplace, even if some of the workforce is less efficient as compared to mainstream employed individuals.
Social and health care services are provided directly through the business and included as a cost of business. This helps to effectively implement and centralize these important services.
Collaborative relationships with established businessesvia joint marketing and sales ventures fuels the Econet economic engine.These collaborative relationships provide a financial incentive for associated business to “invest” in the disadvantaged and is a source of ongoing revenue for Econet and its employees. These joint ventures also serve to decrease start-up costs and provide potential access to jobs for the Econet employees in the business sector. Associated businesses are not required in any way to directly hire Econet employees unless it is considered advantageous to do so.
Comparing the Models In the table below the features of the Traditional Psychosocial Model are compared to the Econet Model.
Comparison of Models
Traditional Psychosocial Model
Econet Model
Funding & Revenue
Government programs or through grants
Private business revenue
Staffing
Non-profit programs
Employees of Econet
Access to Jobs
Job referral or placement if provided for at all
Directly and immediately supplied
Social Support
Through non-profit programs if provided
Extensive through small cohesive work groups ("quality circles")