06.04.08
Brazil’s Social & Environmental Stock Exchange (BVS&A) Celebrates Five Years
Newsweek magazine recently wrote a story on Celso Grecco, founder of the “first” social stock exchange (Brazil’s Social and Environmental Stock Exchange (BVS&A)). The article is a good one - and while it does include under one umbrella term of “exchange” ones in Brazil and South Africa - which are really online donor platforms - and some of the newer exchanges in development which aspire to include not just grants but patient and equity-like capital - it also makes the very appropriate comparison between BVS&A and their suitable peers such as Kiva.org and Donorschoose.org. In fact, although BVS&A is noted as the ‘first’ social stock exchange - given that it allows investor/donors to donate funds to a varierty of pre-screened opportunities - it is in a way one of the first online marketplaces…
Grecco notes how BVS&A - and like exchanges - are helping to meet the deep needs of investor/donors for “order and transparency”. Due to the strong vetting process, the BVS&A provides a true “seal of quality” for listed nonprofits. The online platform for donating and reporting greatly increases the transparency of process and results for donors. As we are increasingly hearing these same needs for ”order and transparency” articulated in many of the initiatives focused on developing a social capital marketplace - the BVS&A does demonstrate the power of meeting these needs effectively. In fact, two examples from the article demonstrate well the value in linking donor capital with organizations in need. One story shows how initial seed funds acquired through the exchange helped a local solution (Viva Rio) grow to actually become part of public policy and replicate in 14 states in Brazil. Another discusses a new project on solar lamps that will both cut energy costs and reduce the carbon footprints of shrimp farmers.. Innovative ideas getting important accces to capital through a trusted source providing order and transparency - good news!
