Social Economy: A Primer

Alanna K. Higgins, University of Latvia

• Different perspectives:
• Reformist: better allocation of resources to support marginalized
• Radical: social economy as 'construction site' for building and implementing strategies
• (Lewis and Swinney, 2007)

• First appeared in economics literature in 1830
• Includes cooperatives, nonprofits, social enterprises, charities

Latvian Context

• As of 2010, 74 Cooperatives with 440 employees and 17,330 members
• Enterprises still confuse "socially responsible enterprise" and "social enterprise" (Pilotproject Latvia, 2014)
• New and "under developed" concept (Social Entrepreneurship Support Network, 2015)
• Influence of CEE centrally-planned economies (Campos and Avila, 2012)
• Current law in works for social entrepreneurship
• Activities being carried out not classed under social economy but using objectives

Three Systems of the Economy

Pearce, 2003

Social Economy

Social Economy: A Primer

• Need for new resolutions or satisfaction of needs that have been ignored or not fulfilled
• Non-profit and have democratic governance, with the objective to serve members
• More prevalent but still unfamiliar outside of certain areas, with activities often seen as 'voluntary' or 'non-proft' (Uluorta, 2009)
• Can be used in conjunction with solidarity economics as a framework to understand economic alternatives (Lewis and Swinney, 2008)

Empirical Examples

(Uluorta, 2009)

Social Economy in the EU

What can Social Economy do for Communities and Individuals?

• 2 million SE enterprises in Europe; over 11 million as employees (European Commission, 2016)
• In past 16 years, >200 texts adopted by high level EU governing bodies/organizations (Social Economy Europe, 2015)
• Social Economy Europe: EU-level representative org

Sostre Civic

The Big Issue

Around the World

• Spain
• Targets members of cooperative, participants in housing system
• Aims to improve housing access
• Promotes cooperative, advocates for structural changes
• Manages, promotes, and advises housing projects
• Member contributions entitle them to use of housing and related services
• Spread of cooperative model throughout Spain and into other countries

• United Kingdom
• Targets homeless or those in danger of homelessness
• Aims to address issues through chance to earn income, along with challenging stigma
• Company and charity seperate but connected
• Operating >20 years, helped thousands of people

Re Tech Life Onlus

• Italy
• Target disadvantaged who experience social exclusion
• Aims to provide funds for social inclusion and regeneration, along with other economic, social, and environmental goals
• Cooperates with prisons in Italy
• WEEE collected and processed
• Employs almost 100 people, conducting >1500 hrs training

• Canada
• Social Economy Initiative of 2003
• Strong SE policy agenda in Quebec
• Other cross-governmental policies
• Latin America
• Brazil, Bolivia, Argentina, Mexico, Ecuador, Columbia
• Civil Society Networks
• Africa
• Mali Department of Economic Solidarity
• few governmental boards established

• Drivers for social innovation and change
• Employment, Social Cohesion, Development and Protection, Policies
• Placement of people over capital
• Sharing of surplus, work conditions and pay, job stability
• Participatory democracy
• Crises "buffer", new models of growth and structural changes
• Capacity to generate wealth not confined to financial capital
• (Social Economy Europe, 2015)

REFERENCES

• Campos, J.L.M. and Avila, R.C. 2012 “The Social Economy in the European Union” http://www.eesc.europa.eu/resources/docs/qe-30-12-790-en-c.pdf
• European Commission, 2016 “Social economy in the EU” https://ec.europa.eu/growth/sectors/social-economy_en
• Lewis, M. and Swinney, D., 2007 "Social economy? Solidarity economy?: Exploring the implications of conceptual nuance for acting in a volatile world." In: Congreso Mundial sobre Economía Social.
• Lewis, M., & Swinney, D. 2008. "Social Economy & Solidarity Economy: Transformative Concepts." In: SOLIDARITY ECONOMY: BUILDING ALTERNATIVES FOR PEOPLE AND PLANET PAPERS AND REPORTS FROM THE US SOCIAL FORUM 2007
• Pearce, J. 2003 “Social Enterprise in Any Town” (London, U.K.: Calouste Gulbenkian Foundation)
• Pilotproject Latvia 2014 “Action ‘Pilotproject Latvia’: Final Technical Report” http://edz.bib.uni-mannheim.de/daten/edz-h/gdb/16/Latvia_final%20report_august%202014_06.08.doc.pdf
• Social Economy Europe 2015 “Social Economy… Taking Back the Initiative” White Paper
• Social Entrepreneurship Support Network 2015 "Social Enterprise Sector Snapshot around the Baltic Sea" http://www.socialenterprisebsr.net/2016/02/social-enterprise-sector-snapshot-around-the-baltic-sea/
• Uluorta, H.M. 2009 The Social Economy: Working Alternatives in a Globalizing Era Taylor & Francis
• The Big Issue http://www.bigissue.com/about-us
• Re Tech Life Onlus https://translate.google.lv/translate?hl=en&sl=it&u=http://www.retechlife.com/&prev=search
• Sostre Civic http://sostrecivic.coop/