It is a different model of economic development that emphasizes on social impact, the cultivation of social solidarity and the promotion of democratic management principles.

 It is the third sector of the economy that produces goods and services and is differentiated from the public and private because of its two main characteristics, on the one hand the activities which give priority to meeting social needs rather than expanding profitability and on the other hand activities which are developed through collective and democratic processes of participation and decision-making. The goals, principles and priorities of KALO include, the production of goods and the provision of services that are not offered or are not sufficiently offered by the private and public sectors (with the aim of accessing members of the local community), the livelihoods of those who produce or offer those services and the creation of new job positions, the democratic functioning of the internal organization of work, the determination of wages, the production and reinvestment, and the sustainability of the natural environment and the elimination of social inequalities.

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