The Reader 2010 “Social and Solidarity Economy: Building a Common Understanding” In support of the First edition of the Social and Solidarity Economy Academy, 25 -29th October 2010, ITC ILO, Turin, Italy By Bénédicte Fonteneau, Senior researcher at the Research Center/Leuven University - HIVA /Belgium Nancy Neamtan, Director General , Chantier de l'Economie Sociale, Canada Fredrick Wanyama, Director, School of Development and Strategic Studies, Maseno, University, Kenya Leandro Pereira Morais, Profesor del CEA-PUCCAMPINAS - Coordinador del Área de Desarrollo Territorial del Instituto Polis, Brasil Mathieu de Poorter, ILO Job Creation and Enterprise Development Department Cooperative Programme (EMP/COOP) Copyright © International Training Centre of the International Labour Organization 2010 This publication enjoys copyright under Protocol 2 of the Universal Copyright Convention. 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THE READER 2010: “SOCIAL AND SOLIDARITY ECONOMY: BUILDING A COMMON UNDERSTANDING” ISBN 978-92-9049-568-0 First edition 2010 First edition of the Social and Solidarity Economy Academy, 25 - 29 October 2010, ITC ILO, Turin, Italy Coordination Roberto Di Meglio (ITC ILO Turin) Coumba Diop (ITC ILO Turin) Contacts International Training Centre of the ILO Viale Maestri del Lavoro, 10 10127 Turin, Italy [email protected] http://socialeconomy.itcilo.org/en The designations employed in publications of the International Training Centre of the ILO, which are in conformity with United Nations practice, and the presentation of material therein do not imply the expression of any opinion whatsoever on the part of the Centre concerning i.a. the legal status of any country, area or territory or of its authorities, or concerning the delimitation of its frontiers. 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Publications of the Centre, as well as a catalogue or list of new publications, can be obtained from the following address: Publications International Training Centre of the ILO Viale Maestri del Lavoro, 10 10127 Turin, Italy Telephone: +39 - 011 - 6936.693 Fax: +39 - 011 - 6936.352 E-mail: [email protected] Designed and printed by the International Training Centre of the ILO, Turin - Italy SOCIAL AND SOLIDARITY ECONOMY ACADEMY Acknowledgments The ILO and the authors of this reader wants to express their gratitude to the following institutions and experts for their valuable comments: Prof.Carlo Borzaga University of Trento Dept. of Economics; Mr.Francis Sanzouango, ILO Senior Adviser for Africa, Bureau for Employers' Activities (ACT/EMP) Geneva; Mr.Thierry JEANTET (EURESA);Ms. Karine Pflüger (Social Economy Europe); Mr.Jürgen Schwettmann , Deputy Regional Director. ILO Regional Office for Africa, Addis Ababa; CIRIEC (various experts); Ms. Monica Lisa (Learning Technology Applications Department ITC ILO) Mr.Tom Fox , Social Enterprise Development, ILO Pretoria; Ms. Carlien Van Empel (ILO COOP Geneva); Ms.Joni Simpson (ILO Geneva); Mr. Jan Olsson (European Economic and Social Committee) READER iii SOCIAL AND SOLIDARITY ECONOMY ACADEMY Foreword The Social Economy plays a significant and growing role in our economies and societies, by providing employment, social protection as well as others social and economic benefits. Because of their distinctive features and comparative advantages, among others their democratic governance and autonomous management, the social enterprises and organizations are supported, or are about to be supported, by an increasing number of States. Policy frameworks for the development of the social economy at the national and regional levels are being implemented across all regions of the world. This builds on partnerships between governments, social partners and civil society. The social economy promotes values and principles focusing on people’s needs and their community. In the spirit of voluntary participation, self-help and self-reliance, and through the means of enterprises and organizations, it seeks to balance economic success with fairness and social justice, from the local to the global level. The constitutional ILO concepts of justice and of peace are endorsed by the social economy enterprises and organizations, together with other private sector enterprises and the public sector as acknowledged by the ILO and its Constituents in the Declaration on Social Justice for a Fair Globalization (2008), which calls for a focus on people. The ILO has been involved in the promotion of the social economy since its establishment. In 1920, the ILO Director-General created a Cooperative Branch, now the ILO Cooperative programme (EMP/COOP). The first ILO official document making reference to the social economy dates back to the proceedings of the 11th Session of the Governing Body (January 1922). In the 1980’s the ILO developed the concept of ‘social finance’, which covers a broad variety of microfinance institutions and services. In 2001, the ILC set a New Consensus on social security that gives the highest priority to extending coverage to those that have none, leading the ILO to further increase its support to community-based protection schemes and mutual benefit societies . More recently, the ILO has started to promote ‘social enterprises’ and ‘social entrepreneurship’. The concept of social economy is already an integral part of many ILO initiatives and programmes, such as labour-intensive programmes, the promotion of eco-tourism and fair trade, support to indigenous minorities, local economic development projects, ILO/AIDS, green jobs and, more broadly, sustainable enterprises and the social protection floor. The ILO has developed over decades an extensive expertise in social economy, and developed a comprehensive set of strategies and tools for serving people in their quest of social justice through Decent Work. However, these strategies and tools do not cater for the need to define enterprises and organizations of the social economy as part of a coherent, integrated whole. Such action is necessary to enhance and increase the efficiency of these enterprises and organizations taken individually, as well as their combined efficiency in terms of the goals pursued. Promoting social economy is about contributing simultaneously and in a mutually reinforcing manner to each dimension of the Decent Work Agenda. Enterprises and organizations of the social economy create and sustain jobs and livelihoods, extend social protection, strengthen and extend social dialogue for all workers, and promote the application and enforcement of standards for all. In this time of crisis recovery, the promotion of social economy within the Decent Work Agenda framework is a significant ally for implementing the Global Jobs Pact, from local to global levels. iv READER SOCIAL AND SOLIDARITY ECONOMY ACADEMY The ILO Regional conference The social economy – Africa’s response to the crisis organized in 2009 in Johannesburg confirmed the rising interests of ILO Constituents, and this conference led to a tripartite consensus with the adoption of the Plan of Action for the promotion of social economy enterprises and organizations. During the 99th ILC Session, Constituents stressed the need to strengthen the work of the Office on the social economy as important area of Decent Work creation. On the impetus of ILO Regional Office for Africa, the ILO International Training Centre further decided to support the needs of ILO constituents and other social economy stakeholders by organizing a yearly Interregional Academy. This Reader will serve as a basis to the first edition of the Academy, which will provide a unique interregional opportunity for policy makers to advance the development of social economy, for workers to better sustain and improve their economic and social conditions, and for entrepreneurs to develop their competitiveness in a fairer environment. This Academy will contribute to ILO’s work on the promotion of social economy for Decent Work for all and, by learning and exchanging; the ILO will improve its capacities to better focus on people, towards Social Justice for all. Mr. François Eyraud Mr. Charles Dan Director ILO Regional Director for Africa International Training Centre of the ILO Mr. Assane DIOP Mr. José Manuel SALAZAR-XIRINACHS Executive Director Executive Director Social Protection Sector (ED/PROTECT) Employment Sector (ED/EMP) ILO ILO READER v SOCIAL AND SOLIDARITY ECONOMY ACADEMY Introduction The social and solidarity economy (SSE) refers to organizations and enterprises that are based on principles of solidarity and participation and that produce goods and services while pursuing both economic and social aims. We all know cooperatives, mutual benefit societies, associations or social enterprises that are active in the social and/or economic sector. The SSE encompasses a variety of organizations and enterprises that all share social and economic objectives, values and operating principles. The paradox of the SSE is that it refers to familiar realities although the concept is not always very well known or commonly understood. The overall objective of this