Financial Mechanisms for Innovative Social and Solidarity Economy Ecosystems
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Financial Mechanisms for Innovative 100 Social and Solidarity Economy 95 Ecosystems 75 25 5 0 Cover_BASE 11 November 2019 09:30:13 Financial Mechanisms for Innovative Social and Solidarity Economy Ecosystems Samuel Barco Serrano1, Riccardo Bodini2, Michael Roy,3 Gianluca Salvatori4 1 Co-founder and CEO, SOKIO Cooperative. 2 Director, Euricse. 3 Professor of Economic Sociology and Social Policy, Yunus Centre for Social Business and Health/Glasgow Schoof for Business and Society, Glasgow Caledonian University. 4 Secretary General, Euricse. Copyright © International Labour Organization 2019 First published 2019 Publications of the International Labour Office enjoy copyright under Protocol 2 of the Universal Copyright Convention. Nevertheless, short excerpts from them may be reproduced without authorization, on condition that the source is indicated. 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Coordination by: Roberto Di Meglio & Valentina Verze of the ILO, Geneva Design and layout by the International Training Centre of the ILO, Turin – Italy FOREWORDS he 9th edition of the Social and Solidarity Economy Academy that took place in T September 2015 in Luxembourg clearly highlighted the need to look closer at the financial needs of SSE organizations relating to the specificities of SSE enterprises and organizations. In my view, supporting the ILO research project on Financial Mechanisms for Innovative Ecosystems in the Social and Solidarity Economy and thus exploring the different financing mechanisms that exist is quintessential to fostering the development of the social and solidarity economy. Financial crises, limited access to affordable credit on the part of SSE organizations and the commercialization of microcredit all point to the need to transform financial systems. SSE organizations still have difficulty in accessing funding which prevents all stakeholders, including governments from realizing the full potential of SSE for the creation of decent jobs, amongst other things. © SIP Luxembourg being the 2nd largest investment fund In the upcoming year, I shall remain strongly centre worldwide, global leader in inclusive finance committed to the social and solidarity economy and and leading international platform for sustainable corresponding financial support mechanisms. finance, I strongly believe that we can play a pioneer role at the European and international level and I will actively contribute to designing and implementing Dan Kersch policies and initiatives on social finance to support the Minister of Labour, SSE enterprises and organizations, and to building new Employment and Social and strengthening existing networks between the world and Solidarity Economy of finance, SSE actors and other stakeholders. v he International Labour Organization (ILO) In the IX boasts a long tradition and experience in the Edition of the T social and solidarity economy. In fact, the ILO’s ILO Academy Cooperatives Unit was established in 1920, one year on SSE held after the ILO’s creation, and the first official document in Luxemburg to make direct reference to enterprises in the social in 2015, a economy dates back to the year 1922. clear mandate was given to The ILO’s commitment to the advancement of the look closer at SSE is grounded on its Constitution, on the 2008 ILO the financial Declaration on Social Justice for a Fair Globalization mechanisms and on the 2019 Declaration for the Future of fostering the SSE Work in which it is indicated that the ILO should organizations, concentrate its effort in “supporting the role of the especially at the private sector as a principal source of economic ecosystem level. growth and job creation by promoting an enabling environment for entrepreneurship and sustainable Therefore, the enterprises, in particular micro, small and medium- ILO has decided sized enterprises, as well as cooperatives and the to look more social and solidarity economy, in order to generate © ILO deeply into how decent work, productive employment and improved SSE Ecosystems can be fostered and which financial living standards for all”. resources can be made available and accessed in order to support the growth of social and solidarity There is growing interest in economic models based economy (SSE) organizations and their ecosystems. on cooperation, mutualism and solidarity. Social and Solidarity Economy consists of enterprises and We would like to take this opportunity to thank the organizations, in particular cooperatives, mutual Luxemburg Government and especially the Ministry benefit societies, associations and social enterprises, of Labour, Employment and Social and Solidarity which have the specific feature of producing Economy for the continuous support and common goods, services and knowledge while pursuing both commitment in advancing the SSE in the framework economic and social aims and fostering participation of promoting the decent work agenda. Moreover, and solidarity. we would like to thank the authors of the paper Mr Samuel Barco, Riccardo Bodini, Mr Michael Roy Alongside the Future of Work Centenary Initiative, the and Mr Gianluca Salvatori of the European Research ILO has for several years now organized the Social Institute on Cooperatives and Social Enterprises and Solidarity Economy Academy, a 5-day interactive (Euricse), for their work in researching and training event on the Social and Solidarity Economy elaborating this publication, based on eight national (SSE) bringing together governments, policy makers, case studies. academicians, and SSE practitioners from around the globe. The exchanges undertaken during the We wish you a good reading and we hope it can bring sessions are geared towards achieving the Academy’s you new insights into your work in favour of a human- objectives of contributing to a better understanding of centred future of work. the SSE concept, underlining the relevance of SSE as an alternate/ complementary development paradigm, Vic van Vuuren both within the ILO’s Decent Work Agenda and the Director Enterprises Department 2030 Sustainable Development Agenda, building ILO Geneva new and strengthen existing SSE networks, facilitating sharing of best practices and knowledge, and creating and fostering a SSE community of practice. vi TABLE OF CONTENTS Forewords ......................................................................................................................... v Acknowledgements .......................................................................................................................2 Abstract ........................................................................................................................................3 1. INTRODUCTION ............................................................................................................4 2. THE SOCIAL AND SOLIDARITY ECONOMY AND ITS ECOSYSTEMS ...................................7 2.1 The ecosystems of the SSE .............................................................................................................. 7 2.2 The SSE’s role and potential ........................................................................................................... 13 2.3 The future of work .......................................................................................................................... 15 3. FINANCIAL MECHANISMS FOR THE SOCIAL AND SOLIDARITY