Social And Solidarity Economy

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Article for the Encyclopedia of World Poverty, 2nd Edition Social and Solidarity Economy The social and solidarity economy concept refers to enterprises, organizations, and innovations that combine production of goods, services, and knowledge with achieving economic and social goals as well as solidarity building. Idea of social economy emerged in the first half of the 19th century in Europe. In many countries working class experienced deterioration of living conditions by expansion of industrial capitalism. Representatives of peasants and workers launched self-help groups and initiatives such as cooperatives and mutual benefit societies that were independent from traditional philanthropy of the wealthy. Examples: Rochdale or Owen in England, Raiffeisen in Germany, Fourier or Buchez in France, Staszic or Bliziński in Poland. In academic discourse concept reemerged in the 1980s in France and then spread in most European countries, Latin and North America, and Asia. In the beginning of 21st century the social economy is considered as a possibility for a “third way” of development after the collapse of state-controlled economies and the criticism of liberal economies. The Social and Solidarity Economy Relations with Public, Private, and Civic Sectors Social and solidarity economy is not a sector of the economy, but an approach to theory and practice which includes initiatives in different sectors of the economy. Social economy mainly includes cooperative, not for profit, and voluntary activities which make this concept similar to third sector of society that includes citizens associations and foundations. Third sector is defined by reference to the public sector (state, government, public administration) and the private sector (com... ... middle of paper ... ...mount of paid work. Social dimensions include: aim to benefit the community; initiative launched by a group of citizens or civil society organisations; limited profit distribution. Last set of criteria are participatory governance of social enterprises: a high degree of autonomy; decision-making power not based on capital ownership; participatory nature, which involves various parties affected by the activity (users or customers). Government support for social economy entities is recognized in European Union, Brazil and Argentina. While in countries of Africa and Asia support is built by the citizens forums and networks on sustainable development and by United Nations agencies. Among policy themes on social enterprises are: improving access to financial resources; research for increasing understanding and visibility; capacity building; ac¬cess to public procurement.

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