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Transcript of Prezentareppdespre ES
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Defining the Social Economy
Theory of the Social Economy
Module BAM450
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Structure of the presentation
Legal EU definition
Brief history of development
Outline of three competing definitions
Moving forward: social enterprise or aneconomy of solidarity?
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The formal EU definition Since 1989 the social economy has
been the responsibility of the
Commissions Employment and SocialAffairs DG which defines it as including:
Cooperatives
MutualsAssociations
Foundations
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Vaguely analagous alternative
terms for the social economy: Non-profit sector: cannot make profits
Not-for-profit sector: can make profits
but not primary motivation Solidarity economy: in support of the
poor, e.g. fair trade
Alternative economy: motivated by, e.g.concern for the environment
Third system [otherwise: third sector]
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History and background of the
term French term economie sociale first
used by Charles Dunoyer in 1830 in his
paper called Nouveau trait dconomiesociale.
This was a paternalistic notion based ina Catholic attempt to counteract classconflict
(Westlund, 2003).
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What was happening in Paris
in 1830?
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Anthropology of human
societies Side by side with family housekeeping, there
have been three principles of production anddistribution:
Reciprocity Redistribution Market Prior to the market revolution, humanitys
economic relations were subordinate to thesocial. Now economic relations are nowgenerally superior to social ones.
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Root of social economy in
workers movements Various traditions--socialist, Christian, liberal (Owen,
Saint-Simon, Fourier, Proudhon). Context was industrialization, proletarianization and
pauperization Multifunctional associations aiming to create a micro-
social space of solidarity and to step in as actors inthe area of economic organization, both at the levelof production and at the level of distribution.
Made some use of traditional types of solidarity(families, corporations), but grounded in principles ofliberty and equality between members.
(Nyssens, 1997: 178-9).
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Social economy as the third
way In the conflict between capitalism and socialism
which characterized twentieth century Europe, thesocial economy became a "third" way. (Westlund,
2003: 1193). State involvement in social services ended the
multifunctionality of the third sector. mutual benefit societies specialized in social
protection
cooperatives confined their activities to consumption trade unions turned to the workers struggle. Dissociation between the economic (the sphere of
the market) and the social (the sphere of the state).(Nyssens, 1997: 179).
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Nyssens definition Essentially seeing the social economy as
filling gaps left by the private and public
sectors Generates three poles of economic
activity
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Evolution of social economy in
three stages1. Network-based associations with various
functions arising to solve specific problems,
with both an economic and a politicalidentity.
2. Integration into a modernization projectthat favoured the market-state synergy:
marginalization.
3. A revitalization following the crisis of themarket-state relationship
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In the South, the popular economy turns outto be not only a means of survival in the faceof economic adversity, but also a means ofpolitical, social and cultural resistance,particularly via a rekindling of the associativeflame. . . In the North, the burgeoning ofnonprofit organizations producing goods andservices at the community levels appears as aparticular response to the crisis inemployment and the welfare state
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Westlunds definition Revolves around the nature of relationships
Reciprocity can be described in terms of
give-and-take in a relationship betweenactors who, to a certain extent are equals. . .Mutuality is often used as a synonym forreciprocity. . . Reciprocity of social relations
creates mutuality of economic relations, butmutuality in economic transactions is noguarantee of reciprocity in social relations.
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Like the family economy the social economy is basedon reciprocity; unlike the family economy kinship isnot involved;
The market economy and public sector are based onmonetary exchange; the social economy is not;
The public sector is based on official legislation,whereas the social economy is based on commonality
of interests and values; The market economy and public sector are based
primarily on material capital whereas the socialeconomy is based primarily on social capital.
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Pearces definition
Complex and based on 'systems
It attempts to include all the different
types of organization that exist in amodern economy, which is a strengthas well as a weakness
Inclusion of the level, from local toglobal, is useful
It does not deal adequately with coops
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WIRC definition
A pragmatic, operational definition
Our defining scalpels are ownership and
control The following dimensions are significant:
Ownership
Control Values
Product
Source of finance
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Ownership Control Product Finance Values
Tower Colliery Workers Workers/management Economic Employees/private Mutualistic
OMSCO
(organic milk
suppliers
cooperative)
Joint/workers ? Economic Private/members Mutualistic(organic)
Local ESOP? Worker/shareholders Managers Economic Employees/private Market
Glas Cymru Trust? Managers Public good Private Mutualistic?No
Community
enterprise Workers Employees?Committee? Social Public MutualisticNewtownCredit Union Members Members Financial Members MutualisticFoundation
hospital State? Members Social Public Market?Ty Hafan
childrens
hospiceNon-profit Managers Social Charitable Philan-
thropic
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The future? Social enterpriseor an economy of solidarity?
Social enterprise originated in the US
A form of mutual activity acceptable
within a market economy?
A useful tool for politicians wishing toreduce the role of the state? E.g. social
housing
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Social enterprise
referring to market-oriented economicactivities serving a social goal. The
social enterprise is then viewed as aninnovative response to the fundingproblems of non-profit organizations,which are finding it increasingly difficult
to solicit private donations andgovernment and foundation grants.(Defourney and Nyssens, 2006).
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Criteria for a social enterprisepace WISE
A continuous activity, producing and selling goods and/orservices
A high degree of autonomy A significant level of economic risk A minimum amount of paid work An explicit aim to benefit the community An initiative launched by a group of citizens Decision-making power not based on capital ownership
A partipatory nature, which involves the various partiesaffected by the activity
Limited profit distribution
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An economy of solidarity?
The projects of an economy of solidarity havea tendency to reunite that which has long
been separated and to question somepresuppositions of the market-state synergy:the separation between the economic and thesocial, the sharp dividing line between paid
work and leisure, the states monopoly onsolidarity, the market-state dichotomy, and soon.
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Characteristics
Bottom-upwhat we might have calledmutualism
Anti-capitalist? At least anti-globalisation
Importance of the locallevel of control
Reduction of consumption and respectfor the planeta partially new concern
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An economy of emancipationand co-operation
Why produce only as a function of an unjust marketthat depletes and exploits, denying us the chance tomanage both the production and the economy for
our own service, for the service of all citizens, and ofall peoples of the planet, as well as for futuregenerations?Our proposal is a socioeconomy ofsolidarity as a way of life that encompasses thetotality of the human being, that announces a new
culture and a new form of producing to fulfill theneeds of each human being and of the entirehumanity.