ciriec 2007 - the social economy in the european union

8/13/2019 CIRIEC 2007 - The Social Economy in the European Union

1/128

ENEN

Centre international de recherches et d'informationsur l'conomie publique, sociale et cooprative

CIRIEC

THE SOCIAL ECONOMY IN THE EUROPEAN UNION

N. CESE/COMM/05/2005The European Econo!c an" Soc!a# Co!$$ee %EESC&

DI CESE 97/2007 GR III ahc


2/128

Writers of the Report: - Rafael Chaves vila - Jos Luis Monzn Campos

Committee of Experts: - Danile Demoustier - Ro!er "pear - Lisa #ro$el

2


3/128

The Soc!a# Econo' !n $he European Un!on - Report Rafael Chaves & Jos Luis Monzn


TABLE OF CONTENTS

Preface

%& 'ntro(u)tion an( o$*e)tives

+& ,istori)al evolution of the "o)ial E)onom )on)ept

.& '(entifi)ation of the a)tors or !roups in)lu(e( in the "o)ial E)onom )on)ept

/& 0he main theoreti)al approa)hes relate( to the "o)ial E)onom )on)ept

1& Comparative analsis of the prevailin! (efinitions relatin! to the )on)ept of the"o)ial E)onom in ea)h European 2nion mem$er state

3& 0he "o)ial E)onom in the European 2nion in fi!ures

4& 0he le!al frame5or6 of the "o)ial E)onom a)tors in European 2nion )ountries

an( the pu$li) poli)ies in pla)e

7& 8utstan(in! )ases of )ompanies an( or!anisations in the "o)ial E)onom

9& 0he "o)ial E)onom the so)io-e)onomi) (evelopment an( the )onstru)tion ofEurope

%;& Challen!es an( tren(s in the "o)ial E)onom

?,@

>??EAD'B

3


4/128


TA(LE O) CONTENTS

Preface

1. Introduction and objectives

2. Historical evolution of the Social Economy concept2.1. Popular associations and co-operatives at the historical origin of the SocialEconomy

2.2. Present-day scope and field of activity of the Social Economy2.3. Present-day identification and institutional recognition of the SocialEconomy2.4. Towards recognition of the Social Economy in national accounts systems

3. Identification of the actors or groups included in the Social Economy concept3.1. A definition of the Social Economy that fits in with the national accountssystems

3.2. The market or business sub-sector of the Social Economy3.3. The non-market sub-sector of the Social Economy

3.4. The Social Economy: pluralism and shared core identity

4. The main theoretical approaches related to the Social Economy concept

4.1. The Third Sector as a meeting point4.2. The Non-Profit Organisation approach

4.3. The Solidary Economy approach4.4. Other approaches

4.5. Resemblances and differences between these approaches and the SocialEconomy concept

5. Comparative analsis of the prevailin! (efinitions relatin! to the )on)ept of the"o)ial E)onom in ea)h European 2nion mem$er state

5.1. The prevailing concepts in each country

5.2. The Social Economy actors in the member states of the European Union

6. The Social Economy in the European Union in figures

4


5/128


7. The legal framework of the Social Economy actors in European Union countriesand the public policies in place

7.1. Legislation governing the Social Economy actors in the European Union

7.2. Public policies towards the Social Economy in European Union countries7.3. Public policies towards the Social Economy at European Union level-

8. Outstanding cases of companies and organisations in the Social Economy8.1. Co-operatives

8.2. Mutual insurance companies and provident societies

7&.& Associations, foundations and other Social Economy organisations

9& 0he "o)ial E)onom the so)io-e)onomi) (evelopment an( the )onstru)tion of

Europe9&%& 0he "o)ial E)onom an( so)ial )ohesion

9&+& 0he "o)ial E)onom an( lo)al an( re!ional (evelopment

9&.& 0he "o)ial E)onom an( innovation

9&/& 0he "o)ial E)onom )ompetitiveness an( (emo)ratisation of theentrepreneurial role

9&1& 0he "o)ial E)onom emploment an( )orre)tin! im$alan)es in the la$ourmar6et

9&3& 8ther roles of the "o)ial E)onom

9&4& Wea6nesses of the "o)ial E)onom:

9&7& 0he "o)ial E)onom an( the )onstru)tion of Europe

%;& Challen!es an( tren(s in the "o)ial E)onom

BIBLIOGRAPHY

APPENDIXCorrespondents

Glossary

5


6/128

PRE)ACE

0he European E)onomi) an( "o)ial Committee has )ommissione( this Report in or(er tota6e sto)6 of the "o)ial E)onom in the +1 mem$er states of the European 2nion& >pre)on(ition for this sto)6ta6in! is to i(entif a )ore i(entit that is share( $ all the )ompaniesan( or!anisations in this sphere& 0he purpose of this is hi!hl pra)ti)al: so that the "o)ialE)onom "E )an $e visualise( an( re)o!nise(& Whi)h an( ho5 man 5here the are ho5the have (evelope( ho5 lar!e or important the are ho5 the pu$li) an( !overnments seethem 5hat pro$lems the solve an( ho5 the )ontri$ute to the )reation an( euita$le(istri$ution of 5ealth an( to so)ial )ohesion an( 5elfare: these are the uestions that theReport a((resses&

0he Report has $een 5ritten $ t5o experts from the 'nternational Centre of Resear)han( 'nformation on the ?u$li) "o)ial an( Cooperative E)onom C'R'EC the or!anisationthat the European E)onomi) an( "o)ial Committee sele)te( for this tas6& 0he (ire)tors an(5riters Rafael Chaves an( Jos Luis Monzn are $oth mem$ers of the 'nstitute of the "o)ialan( Cooperative E)onom of the 2niversit of Falen)ia '2DE"C88?-2F an( of theC'R'EC 'nternational ")ientifi) Committee for the "o)ial E)onom&

>s the 5riters of the report 5e have ha( the permanent support an( a(vi)e of aCommittee of Experts )ompose( of Danile Demoustier 'nstitut (GHtu(es ?olitiues (e=reno$le #ran)e Ro!er "pear 8pen 2niversit Milton Ienes 2nite( Iin!(om an( Lisa#ro$el Mi( "5e(en 2niversit stersun( "5e(en& 0he a(vi)e of ever one of them has $een

ver valua$le at ever sta!e: (esi!nin! the 5or6 s)he(ule metho(olo! (ra5in! upuestionnaires an( supervisin! the final Report& 0he )omments of >postolos 'oa6imi(is of theEuropean Commission Enterprise an( 'n(ustr Dire)torate-=eneral have also $een helpful&

We 5oul( li6e to express our !ratitu(e to the mem$ers of the "o)ial E)onom Cate!orof the European E)onomi) an( "o)ial Committee 5ho ver 6in(l (is)usse( a Wor6in! Report)ontainin! the )on)eptual (efinitions of the "E an( the metho(olo!i)al )riteria for (ra5in! upthe Report 5ith us (urin! their meetin! of +9 Ma +;;3 in !nes Mathis of Cooperatives Europe RitaIessler of the 'nternational >sso)iation of Mutual "o)ieties >'M Lieve Lo5et of the'nternational >sso)iation of Mutual 'nsuran)e Companies >'">M Jean Clau(e Detilleux ofthe European "tan(in! Conferen)e on Co-operatives Mutual "o)ieties >sso)iations an(#oun(ations CE?-CM># Emmanuelle #aure of the European #oun(ation Centre E#CEnzo ?ezzini of the Confe(erazione Cooperative 'taliana Conf)ooperative >l$erto Kevi of'talGs Le!a Aazionale (elle Cooperative e Mutue LE=>C88? an( Mar)os (e Castro of theConfe(era)in Empresarial Espaola (e la E)onoma "o)ial CE?E"&

0his Report 5oul( not have $een possi$le 5ithout the support an( involvement of theEuropean net5or6 of national se)tions of C'R'EC an( C'R'ECGs ")ientifi) Committee for the"E& 0han6s to them 5e 5ere a$le to set up a ver lar!e net5or6 of )orrespon(ents an( )o-

5or6ers in all the )ountries of the European 2nion an( to $enefit from C'R'ECGs lon! re)or( ofresear)h in (e)isive theoreti)al aspe)ts& We are in (e$t to all their relevant 5or6s&

6


7/128


8ne of the )entral o$*e)tives of the Report the )omparative analsis of the )urrentsituation of the "E $ )ountries 5oul( not have $een possi$le 5ithout the (e)isive help of 1+)orrespon(ents N a)a(emi)s se)tor experts an( hi!hl-pla)e( )ivil servants N in the +/ mem$er)ountries an( + )an(i(ates for E2 mem$ership ll of them ans5ere(a )omprehensive uestionnaire on the "E in their respe)tive )ountries )arrin! out this 5or65ith !reat professionalism an( !enerosit& #a$ienne #e)her


8/128

CHAPTER *

INTRO+UCTION AN+ O(,ECTI-ES

1.1. Objectives

0he !eneral o$*e)tive of the Report is to )on(u)t a )on)eptual an( )omparative stu( ofthe situation of the "o)ial E)onom "E in the European 2nion 2E an( its +1 mem$er states&

0o attain this final o$*e)tive the Report emplos three interme(iate o$*e)tives or toolsthat have $een insuffi)ientl (efine( until no5& 0he first )onsists of esta$lishin! a )learri!orous )on)eptual (elimitation of the "E an( of the (ifferent )lasses of )ompan an(or!anisation that form part of it&

0he se)on( interme(iate o$*e)tive aims to i(entif the (ifferent a!ents 5hi)hirrespe)tive of their le!al form form part of the "E in ea)h of the mem$er states of the E2 onthe $asis of the (efinition esta$lishe( in this Report an( to )ompare the (ifferent national(efinitions that are relate( to the "E )on)ept&

0he thir( interme(iate o$*e)tive is to provi(e uantitative (ata of the uantitative (ata ofthe European "E to i(entif the main pu$li) poli)ies that a((ress the "o)ial E)onom inEurope an( the main or!ans for )oor(ination an( so)ial (ialo!ue $et5een !eneral !overnmentan( the or!anisations that represent this se)tor in or(er to provi(e referen)es for the EuropeanE)onomi) an( "o)ial Committee in relation to the part it )an pla as re!ar(s support for the"o)ial E)onom an( there$ (emo)ra) an( so)ial (ialo!ue to i(entif a sample ofoutstan(in! )ases of )ompanies an( or!anisations an( revie5 the )ontri$ution of the "E to theso)io-e)onomi) (evelopment an( )onstru)tion of Europe&

1.2. Methods

0he Report has $een (ire)te( an( 5ritten $ Rafael Chaves an( Jos Luis Monzn ofC'R'EC a(vise( $ a Committee of Experts )ompose( of D& Demoustier #ran)e L& #ro$el"5e(en an( R& "pear 2nite( Iin!(om 5ho have (is)usse( the entire 5or6 s)he(ulemetho(olo! an( propose( final Report 5ith the (ire)tors an( helpe( them to i(entif the(ifferent )lasses of )ompanies an( or!anisations that form part of the "E in ea)h of theEuropean 2nion )ountries&

0he ")ientifi) Committee for the "E of C'R'EC an( the national se)tions of C'R'EChave $een of !reat importan)e for esta$lishin! the )riteria to (elimit the "E an( fin(in!)orrespon(ents an( )o-5or6ers in the E2 mem$er states&

0he information a(vi)e an( su!!estions of the or!anisations that represent the )o-operatives mutual so)ieties asso)iations an( foun(ations ma(e a ver si!nifi)ant )ontri$utionto the suita$ilit of the uestionnaire that 5as applie( in all the )ountries of the E2&

With re!ar( to the metho(s themselves the first part of the Report ta6es the (efinition ofthe $usiness or mar6et se)tor of the "E !iven in the European Commission Manual for (ra5in!up the satellite a))ounts of )o-operatives an( mutual so)ieties as the $asis for esta$lishin! a

(efinition of the "E as a 5hole that is inten(e( to a)hieve 5i(e politi)al an( s)ientifi))onsensus& 0he se)on( part has $enefite( from a previous stu( $ C'R'EC +;;;: The

8


9/128


enterprises and organizations of the third system: A strategic challenge for employmentC'R'EC u!ust +;;3 $ sen(in! out a uestionnaire to the +1 mem$er states of the E2&'t 5as sent to privile!e( 5itnesses 5ith an expert 6no5le(!e of the "E )on)ept an( relate(areas an( of the realit of the se)tor in their respe)tive )ountries& 0hese experts are universitresear)hers professionals 5or6in! in the fe(erations an( stru)tures that represent the "E an(hi!hl-pla)e( national !overnment )ivil servants 5ith responsi$ilities in relation to the "E& 0heresults have $een hi!hl satisfa)tor as 1; )omplete( uestionnaires have $een )olle)te( from+/ )ountries in the E2& Data from "lovauia has $een !athere( from other sour)es& +uestionnaires have $een )olle)te( from + )an(i(ates for E2 mem$ership s re!ar(s the thir( interme(iate o$*e)tive of the Report i(entifin! pu$li) poli)ies an(relevant )ases of European "E )ompanies an( or!anisations an( fore)astin! the )ontri$ution ofthe "E to the e)onomi) (evelopment an( )onstru)tion of Europe this 5as (one throu!h)onsultin! the Committee of Experts an( se)tor experts throu!h information supplie( in theuestionnaires an( throu!h (is)ussions 5ith the Committee of Experts an( 5ithin the C'R'EC")ientifi) Committee for the "E&

9


10/128

1.!. Stuctue and su""a# o$ the %e&ot

0he Report has $een stru)ture( as follo5s:

>fter this first )hapter intro(u)in! the Report an( its o$*e)tives Chapter + presents thehistori)al evolution of the )on)ept of the "o)ial E)onom in)lu(in! the most re)entinformation on its re)o!nition in the national a))ounts sstems&

Chapter . $e!ins $ formulatin! a (efinition of the "E that fits in 5ith the nationala))ounts sstems then i(entifies the ma*or !roups of a!ents in the "E on this $asis&

Chapter / summarises the main theoreti)al approa)hes that are relate( to the "E )on)eptesta$lishin! the resem$lan)es an( (ifferen)es $et5een them&

Chapters 1 3 an( 4 present an overvie5 of the )urrent situation of the "E in the E2provi(in! a )omparative analsis of the (ifferent (efinitions that are relate( to the "E )on)eptin ea)h )ountr the uantitative (ata availa$le an( the most salient aspe)ts of the le!alframe5or6 an( pu$li) poli)ies that ea)h )ountr has (evelope( in relation to the "E follo5e($ a presentation of outstan(in! )ases of "E )ompanies an( or!anisations&

Lastl Chapters 9 an( %; analse the )ontri$ution of the "E to the so)io-e)onomi)(evelopment an( )onstru)tion of Europe the )hallen!es an( tren(s an( the ReportGs)on)lusions& 0he $i$lio!raphi)al referen)es $rin! the Report to a )lose&

10


11/128


CHAPTER 2

HISTORICAL E-OLUTION O) THE SOCIAL ECONOMY CONCEPT

2.1. Popular associations and co-operatives at the historical oriin of the !ocial"cono#$

2.2. Present-da$ scope and field of activit$ of the !ocial "cono#$

2.%. Present-da$ identification and institutional reconition of the !ocial"cono#$

2.. 'o(ards reconition of the !ocial "cono#$ in national accounts s$ste#s

2.1. 'o&ula associations and co(o&eatives at the histoical oi)in o$ the SocialEcono"#

>s an a)tivit the Social Economy"E is histori)all lin6e( to popular asso)iations an()o-operatives 5hi)h ma6e up its $a)6$one& 0he sstem of values an( the prin)iples of )on(u)tof the popular asso)iations snthesise( $ the histori)al )o-operative movement are those5hi)h have serve( to formulate the mo(ern )on)ept of the "E 5hi)h is stru)ture( aroun( threelar!e families of or!anisations: )o-operatives mutual so)ieties an( asso)iations with the recentaddition of foundations& 'n realit at their histori)al roots these !reat families 5ere intert5ine(expressions of a sin!le asso)iative impulse: the response of the most vulnera$le an( (efen)elessso)ial !roups through self-help organisations to the ne5 )on(itions of life )reate( $ the(evelopment of in(ustrial )apitalism in the %7th an( %9th )enturies& Co-operatives mutualassistan)e so)ieties an( resistan)e so)ieties refle)te( the three (ire)tions that this asso)iativeimpulse too6 Lpez Castellano +;;.&

>lthou!h )harit )harit foun(ations $rotherhoo(s an( hospitals an( mutual assistan)eor!anisations ha( seen )onsi(era$le !ro5th throu!hout the Mi((le >!es it 5as in the %9 th

)entur that popular asso)iations )o-operatives an( mutual so)ieties a)uire( extraor(inarimpetus throu!h initiatives laun)he( $ the 5or6in! )lasses& 'n


12/128

National Consolidated Trades nion5as forme( at one of these )on!resses unitin! all the in %791 in Lon(on an( have ma(e a nota$le )ontri$ution to the (evelopment of themo(ern )on)ept of the "E+&

#ollo5in! the %991 Con!ress of 'C> hel( in Man)hester these!rinciplesi(entif )o-operatives as (emo)rati) or!anisations in 5hi)h the (e)isions are in the han(s of a ma*orit ofuser mem"ers of the co-operativised activity so investor or )apitalist mem$ers if an are notallo5e( to form a ma*orit an( surpluses are not allo)ate( a))or(in! to an )riteria ofproportionalit to )apital& Eual votin! ri!hts limite( )ompensation on the share )apitalo$li!atoril su$s)ri$e( $ the user mem$ers an( the )reation in man )ases of in(ivisi$lereserves that )annot $e (istri$ute( even if the or!anisation is (issolve( are further aspe)ts in5hi)h )o-operatives (iffer from )apitalist )ompanies&

#rom Ro)h(ale on5ar(s )o-operatives have attra)te( the attention of (ifferent s)hools ofthou!ht& 'n(ee( )rossin! i(eolo!i)al $oun(aries an( analti)al pluralism are amon! the)hara)teristi)s of the literature that has a((resse( this phenomenon& 2topian so)ialistsRi)ar(ian so)ialists so)ial Christians $oth Catholi) an( ?rotestant an( so)ial li$erals as 5ellas eminent )lassi)al Marxist an( neo-)lassi)al e)onomists have analse( this hetero(ox tpeof )ompan profusel&

'n the multi-fa)ete( expression of popular asso)iationism nhausen an( its spe)ta)ular !ro5th )ulminate( in %744 5ith the foun(in! of the=erman #e(eration of Rural Co-operatives of the Raiffeisen tpe Monzn %979& >t the sametime $oth 5or6ersG mutual assistan)e so)ieties an( rural mutualism $e)ame esta$lishe(institutions in =erman so)iet an( 5ere re!ulate( $ an imperial la5 of %743 "olP ' =ussiner

+;;.&'n "pain popular asso)iationism mutualism an( )ooperativism for!e( stron! lin6s as

the expan(e(& 0he 5ere often set up $ the same !roups as is the )ase of the 5eavers ofsso)iation the first tra(es union in"pain 5as foun(e( in %7/; at the same time as the Asociaci%n 'utua de Te&edoresmutualprovi(ent so)iet 5hi)h in %7/+ )reate( the Compa()a Fa"ril de Te&edores& 0his is )onsi(ere(

2 > (etaile( analsis of the Ro)h(ale experien)e an( its operatin! prin)iples ma $e foun( in Monzn%979&3 riel llema!ne et )ooprationS Archives ,nternationales de Sociologie de la

Coopration et du #veloppement >'"CD AT /%-/+&4 0his 5as the Ermunterung)onsumersG )o-operative foun(e( in Chemnitz in %7/1 ,essel$a)h W&%947:.as empresas de la econom)a de inters general+ "i!lo BB'&

12


13/128


the first pro(u)tion )o-operative in "pain an( 5as a mixture of U5or6ersG pro(u)tion so)ietan( mutual assistan)e so)ietU Reventos %93;&

'n 'tal mutual assistan)e so)ieties 5ere ver numerous in the mi((le thir( of the %9th)entur pre)e(in! the first )o-operatives& 't 5as pre)isel a mutual assistan)e so)iet theSociet/ operaia di Torino that in %71. set up the first )onsumersG )o-operative in 'tal themagazzino di previdenza di Torino to (efen( the pur)hasin! po5er of its mem$ersG 5a!es&"imilar instan)es of frien(l so)ietiesG )reatin! )onsumersG )o-operatives ensue( in other 'talian)ities De Ja)o %949&

Aonetheless of all the European )ountries #ran)e is pro$a$l the one 5here theori!ins of the "E are most visi$l a manifestation of popular asso)iative movements an(in(isso)ia$le from these& 'n(ee( the emer!en)e of )o-operatives an( mutual so)ieties (urin!the first half of the %9th)entur )annot $e explaine( 5ithout )onsi(erin! the )entral role ofpopular asso)iationism 5hi)h in its in(ustrial asso)iationism version foun( its (rivin! for)e inClau(e-,enri (e "aint-"imon an exponent of one of the #ren)h so)ialist )urrents&

2n(er the influen)e of the asso)iationist i(eas of "aint-"imon an( his follo5ersnumerous 5or6ersG asso)iations 5ere )reate( in #ran)e from the %7.;s on5ar(s an( althou!hthe term G)o-operationG 5as intro(u)e( into #ran)e in %7+31$ Joseph Re an 85enite (urin!most of the %9th )entur pro(u)tion )o-operatives 5ere 6no5n as G5or6ersG pro(u)tionasso)iationsG6& The first significant workers' co-operative in France, for instance, the

Association Chrtienne des Bijoutiers en Dor, founded in Paris in 18347, was started by Jean-Phillipe Buchez, a disciple of Saint-Simon.'ts foun(in! (ate an( the name of its GfatherG havethe a(vanta!e of imme(iatel lo)atin! the 0or$ers1 production co-operatives in theenvironment in 5hi)h the ori!inate(: the first half of the %9 th)entur in the meltin!-pot ofso)ial experiments an( so)ialist asso)iationist (o)trines that mar6e( the $irth of the 5or6ersGmovement Fienne %933&

>sso)iationism also plae( a fun(amental part in other so)ialist )urrents su)h as thoseinfluen)e( $ Charles #ourier 5ho )alle( for so)iet to or!anise itself throu!h asso)iationsmutual so)ieties an( phalanxes multi-purpose )ommunities of 5or6ers 5ith a )omprehensivenet5or6 of multiple soli(arities Desro)he %99%& Wor6ersG pro(u)tion asso)iations alsoo))upie( a (e)isive pla)e in the thin6in! of Louis


14/128

0he termsocial economyappeare( in e)onomi)s literature pro$a$l for the first time in%7.;& 'n that ear the #ren)h li$eral e)onomist Charles Dunoer pu$lishe( a Treatise on socialeconomy that a(vo)ate( a moral approa)h to e)onomi)s7& 8ver the %7+;-%73; perio( ahetero!eneous )urrent of thou!ht 5hi)h )an )olle)tivel $e terme( the social economists(evelope( in #ran)e& Most of them 5ere influen)e( $ the analses of 0&R& Malthus an( "& (e"ismon(i as re!ar(s $oth the existen)e of Gmar6et failuresG that )an lea( to im$alan)es an( the(elimitation of the true o$*e)t of e)onomi)s 5hi)h "ismon(i )onsi(ere( to $e manrather than0ealth& ,o5ever most of the so)ial e)onomists must $e pla)e( 5ithin the sphere of li$erale)onomi) thin6in! an( i(entifie( 5ith laissez-faire prin)iples an( 5ith the institutionsin)lu(in! )apitalist )ompanies an( the mar6ets that the emer!in! )apitalism 5as to)onsoli(ate&

>s a result the so)ial e)onomi)s of the perio( (i( not laun)h or promote an alternativeor )omplementar initiative to )apitalism& Rather these e)onomists (evelope( a theoreti)alapproa)h to so)iet an( 5hat is so)ial pursuin! the re)on)iliation of moralit an( e)onomi)sthrou!h the moralisation of in(ivi(ual $ehaviour as in the mo(el of #& Le ?la >zam +;;.for 5hom the !oal that e)onomists shoul( strive for is not 5elfare or 5ealth $ut so)ial pea)e


15/128


>lthou!h the "E 5as relativel prominent in Europe (urin! the first thir( of the +;th)entur%. the !ro5th mo(el in Western Europe (urin! the %9/1-%941 perio( mainl feature(the tra(itional private )apitalist se)tor an( the pu$li) se)tor& 0his mo(el 5as the $asis of theWelfare "tate 5hi)h fa)e( up to the 6no5n mar6et failures an( (eploe( a pa)6a!e of poli)iesthat prove( hi!hl effe)tive for )orre)tin! them: in)ome re(istri$ution resour)e allo)ation an(anti))li)al poli)ies& >ll of these 5ere $ase( on the Ienesian mo(el in 5hi)h the !reat so)ialan( e)onomi) a)tors are the emploersG fe(erations an( tra(es unions to!ether 5ith the pu$li)authorities&

'n Central an( Eastern European )ountries lin6e( to the "oviet sstem an( 5ith)entrall-planne( e)onomies the "tate 5as the onl fi!ure of e)onomi) a)tivit leavin! nospa)e for the "E a!ents to a)t& Co-operatives alone ha( a )onsi(era$le presen)e in some "oviet$lo) )ountries althou!h some of their tra(itional prin)iples su)h as voluntar an( openmem$ership an( (emo)rati) or!anisation 5ere totall annihilate(& 'n the last t5o )enturiesCze)h e)onomists 5ere )omin! up 5ith so)ial-e)onomi) approa)hes 5ithout al5as preferrin!onl profita$le mar6et vie5points& Lar!e amount of non-profit or!anisations (urin! the perio(

of 0he #irst Cze)hoslova6 Repu$li) 5ere follo5in! the tra(ition 5hi)h ha( $een (atin! $a)6to the %9th )entur%/&

0he )onsoli(ation of mixe( e)onom sstems (i( not prevent the (evelopment of anota$le arra of )ompanies an( or!anisations N )o-operatives mutual so)ieties an( asso)iationsN that helpe( to solve so)iall important an( !eneral interest issues )on)ernin! ))li)alunemploment im$alan)es $et5een !eo!raphi)al areas an( in the rural 5orl( an( the s6e5in!of po5er $et5een retail (istri$ution or!anisations an( )onsumers amon! others& ,o5ever(urin! this perio( the "E pra)ti)all (isappeare( as a si!nifi)ant for)e in the pro)ess ofharmonisin! e)onomi) !ro5th 5ith so)ial 5elfare 5here the "tate o))upie( almost the entiresta!e& 't 5as not until the )risis of the Welfare "tate an( the mixe( e)onom sstems in the lastuarter of the +;th )entur that some European )ountries sa5 a rea5a6enin! of interest in thetpi)al or!anisations of the "E 5hether $usiness alternatives to the formats of the )apitalistan( pu$li) se)tors su)h as co-operatives an( mutual societies or non-mar6et or!anisationsmostl associationsan(foundations%1& 0his interest spran! from the (iffi)ulties that the mar6ete)onomies 5ere en)ounterin! in fin(in! satisfa)tor solutions to su)h ma*or pro$lems asmassive lon!-term unemploment so)ial ex)lusion 5elfare in the rural 5orl( an( in run-(o5nur$an areas health e(u)ation the ualit of life of pensioners sustaina$le !ro5th an( otherissues& 0hese are so)ial nee(s that are not $ein! suffi)ientl or a(euatel supplie( either $private )apitalist a!ents or $ the pu$li) se)tor an( for 5hi)h no eas solution is to $e foun(throu!h mar6et self-a(*ustment me)hanisms or tra(itional ma)roe)onomi) poli)ies&

>lthou!h a series of (emutualisations of ma*or )o-operatives an( mutual so)ieties hasta6en pla)e in some European )ountries in re)ent (e)a(es overall the $usiness se)tor of the"E )o-operatives an( mutual so)ieties has seen )onsi(era$le !ro5th as re)o!nise( $ theEuropean CommissionGs 'anual for dra0ing up the Satellite Accounts of Companies in theSocial Economy))ounts the %991 E"> non-mar$et output is!oo(s an( servi)es that )ertain or!anisations suppl to other units e&!& househol(s or families 5ithout)har!e or at pri)es that are not e)onomi)all si!nifi)ant& Non-mar$et producersare those that suppl the

ma&ority of their outputfree or at insi!nifi)ant pri)es& Most private non-mar6et pro(u)ers are asso)iationsan( foun(ations althou!h man of these or!anisations are also mar$et producers an( moreover of)onsi(era$le e)onomi) importan)e&

15


16/128

Ma*or stu(ies have hi!hli!hte( the )onsi(era$le !ro5th of the "E as a 5hole in Europe&8ne of the most si!nifi)ant of these )arrie( out $ C'R'EC for the European Commission5ithin the frame5or6 of the U0hir( "stem an( EmplomentU ?ilot ")heme C'R'EC +;;;hi!hli!hts the in)reasin! importan)e of )o-operatives mutual so)ieties an( asso)iations for)reatin! an( maintainin! emploment an( )orre)tin! serious e)onomi) an( so)ial im$alan)es&

>fter the soviet $lo) )rum$le( man )o-operatives in Eastern an( Central Europe)ollapse(& #urthermore the 5ere severel (is)re(ite( in the ees of the pu$li)& Latelho5ever a revival of )itizensG initiatives to (evelop "E pro*e)ts has $een ta6in! pla)e an( is$ein! refle)te( $ proposals for le!islation to $oost the or!anisations in this se)tor&

"pe)ta)ular !ro5th in the "E has ta6en pla)e in the fiel( of or!anisations en!a!e( inpro(u)in! 5hat are 6no5n as social or merit goods+ mainl 5or6 an( so)ial inte!ration an(provi(in! so)ial servi)es an( )ommunit )are& 'n this fiel( asso)iationism an( )ooperativismseem to have reen)ountere( a )ommon path of un(erstan(in! an( )o-5or6in! in man of theirpro*e)ts an( a)tivities as in the )ase of social enterprises man of them )o-operatives 5hi)hare alrea( le!all re)o!nise( in various European )ountries su)h as 'tal ?ortu!al #ran)eCME >sso)iation (es )oopratives et mutuelles (Vassuran)e http:YY555&a)me-eu&or!&18 CAL>MC> 5as set up on %% June %94;& 8n .; 8)tu$er +;;% it $e)ame the present-(a CE=E"Conseil des entreprises+ employeurs et groupements de l8conomie socialeor Coun)il of "o)ial E)onomCompanies an( 'nstitutions Davant +;;.&

16


17/128


use even amon! the GfamiliesG in this se)tor of e)onomi) a)tivit%9& European )onferen)es of )o-operatives mutual so)ieties an( asso)iations 5ere hel( un(er the auspi)es of the EuropeanE)onomi) an( "o)ial Committee in %944 an( %949 EE"C %973& Coin)i(in! 5ith its %; th

anniversar in June %97; the CAL>MC> pu$lishe( a (o)ument the Charte de l7conomiesocialeor "o)ial E)onom Charter 5hi)h (efines the "E as the set of or!anisations that (o not$elon! to the pu$li) se)tor operate (emo)rati)all 5ith the mem$ers havin! eual ri!hts an((uties an( pra)tise a parti)ular re!ime of o5nership an( (istri$ution of profits emploin! thesurpluses to expan( the or!anisation an( improve its servi)es to its mem$ers an( to so)ietH)onomie "o)iale %97%Q Monzn %974&

0hese (efinin! features have $een 5i(el (isseminate( in the e)onomi)s literature an(outline an "E sphere that hin!es on three main families )o-operatives mutual so)ieties an(asso)iations 5hi)h have re)entl $een *oine( $ foun(ations& 'n sso)iations an( #oun(ations CE?-CM>#+% the E2-level representative institution for these four families of so)ial e)onom or!anisations& 0heprin)iples in uestion are:

0he prima) of the in(ivi(ual an( the so)ial o$*e)tive over )apital Foluntar an( open mem$ership Demo)rati) )ontrol $ mem$ership (oes not )on)ern foun(ations as the have no

mem$ers

0he )om$ination of the interests of mem$ersYusers an(Yor the !eneral interest 0he (efen)e an( appli)ation of the prin)iple of soli(arit an( responsi$ilit >utonomous mana!ement an( in(epen(en)e from pu$li) authorities Most of the surpluses are use( in pursuit of sustaina$le (evelopment o$*e)tives

servi)es of interest to mem$ers or the !eneral interest&

0he rise of the "E has also $een re)o!nise( in politi)al an( le!al )ir)les $oth nationalan( European& #ran)e 5as the first )ountr to a5ar( politi)al an( le!al re)o!nition to themo(ern )on)ept of the "E throu!h the De)em$er %97% (e)ree that )reate( the 'nter-MinisterialDele!ation to the "o)ial E)onom #lgation interministrielle / l76conomie Sociale - #,ES&'n other European )ountries su)h as "pain Gso)ial e)onomG is a term that has entere( thestatute $oo6& >t European level in %979 the European Commission pu$lishe( aCommuni)ation entitle( ; sector: Europe8s frontier-freemar$et;& 'n that same ear the Commission sponsore( the %st European "o)ial E)onom

19 0he first time after Worl( War '' that the expression Gthe "o)ial E)onomG 5as use( in a similar senseto its present meanin! 5as in %94/ 5hen the *ournalAnnales de l8conomie collective)han!e( its nameto Annales de l86conomie Sociale et Cooperative as (i( the or!anisation to 5hi)h it $elon!s C'R'EC:the 'nternational Centre of Resear)h an( 'nformation on the ?u$li) "o)ial an( Cooperative E)onom&Justifin! the )han!e of name ?aul Lam$ert the ?resi(ent of C'R'EC in %94/ pointe( to U importanta)tivities 5ith )onsi(era$le e)onomi) reper)ussions 5hi)h are neither pu$li) nor )ooperative: )ertainso)ial se)urit institutions mutual so)ieties tra(es unions U >nnales %94/& 'n %944 ,enri Desro)he

presente( a ?apport de synth4se ou @uel@ues hypoth4ses pour une entreprise d8conomie sociale to theCAL>MC> Jeantet +;;3&20 Conseil Wallon (e lZH)onomie "o)iale %99;:?apport / l7Ecutif ?gional Ballon sur le secteur de

l76conomie Sociale Li!e&21 #claration finale commune des organisations europennes de l76conomie Sociale CE?-CM># +;*uin +;;+&

17


18/128

Conferen)e ?aris an( )reate( a "o)ial E)onom 2nit 5ithin D= BB''' Enterprise ?oli)Distri$utive 0ra(es 0ourism an( the "o)ial E)onom++& 'n %99; %99+ %99. an( %991 theCommission promote( European "o)ial E)onom Conferen)es in Rome Lis$on


19/128


Re)entl the European Commission has (evelope( a'anual for dra0ing up the SatelliteAccounts of Companies in the Social Economy)o-operatives an( mutual so)ieties+1 5hi)h5ill ma6e it possi$le to o$tain )onsistent a))urate an( relia$le (ata on a ver si!nifi)ant part ofthe "E ma(e up of )o-operatives mutual so)ieties an( other similar )ompanies&

>s the "E )ompan satellite a))ounts Manual sas the metho(s use( $ to(aGs nationala))ounts sstems roote( in the mi( +;th )entur have (evelope( tools for )olle)tin! the ma*ornational e)onomi) a!!re!ates in a mixe( e)onom )ontext 5ith a stron! private )apitalist se)toran( a )omplementar an( freuentl interventionist pu$li) se)tor& Lo!i)all in a nationala))ounts sstem 5hi)h revolves aroun( a $ipolar institutional realit there is little room for athir( pole 5hi)h is neither pu$li) nor )apitalist 5hile the latter )an $e i(entifie( 5ithpra)ti)all the entiret of the private se)tor& 0his has $een one important fa)tor explainin! theinstitutional invisi$ilit of the so)ial e)onom in present-(a so)ieties an( as the CommissionGsManual re)o!nises it lies at o((s 5ith the in)reasin! importan)e of the or!anisations that formpart of the "E&

25 'n +;;. the 2nite( Aations pu$lishe( a ,an($oo6 for (ra5in! up )onsistent statisti)s on the Aon-

?rofit se)tor in a))or(an)e 5ith the )on)eptual (elimitation )riteria esta$lishe( $ the Aon-?rofit8r!anisation A?8 approa)h (es)ri$e( in Chapter . of this stu(& 0his se)tor in)lu(es an important!roup of so)ial e)onom entities lar!el ma(e up of asso)iations an( foun(ations&

19


20/128

CHAPTER

I+ENTI)ICATION O) THE ACTORS OR ROUPS INCLU+E+ IN THESOCIAL ECONOMY CONCEPT

%.1. ) definition of the !ocial "cono#$ that fits in (ith the national accountss$ste#s

%.2. 'he #ar*et or +usiness su+-sector of the !ocial "cono#$

%.%. 'he non-#ar*et su+-sector of the !ocial "cono#$

%.. 'he !ocial "cono#$, pluralis# and shared core identit$

!.1. A de$inition o$ the SE that $its in +ith the national accounts s#ste"s

> further reason for the institutional invisi$ilit of the "o)ial E)onom "E referre( toin Chapter + is the la)6 of a )lear ri!orous (efinition of the )on)ept an( s)ope of the "E that)oul( usefull $e emploe( $ the national a))ounts sstems& "u)h a (efinition nee(s to(isre!ar( le!al an( a(ministrative )riteria an( to )entre on analsin! the $ehaviour of "Ea)tors i(entifin! the resem$lan)es an( (ifferen)es $et5een them an( $et5een these an( othere)onomi) a!ents& >t the same time it nee(s to )om$ine the tra(itional prin)iples an()hara)teristi) values of the "E an( the metho(olo! of the national a))ounts sstems in for)einto a sin!le )on)ept that )onstitutes an operative (efinition an( en*os 5i(e politi)al an(s)ientifi) )onsensus allo5in! the main a!!re!ates of the entities in the "E to $e uantifie( an(ma(e visi$le in a homo!eneous an( internationall harmonise( form&

>))or(in!l this report proposes the follo5in! 5or6in! (efinition of the "E:The set of private+ formally-organised enterprises+ 0ith autonomy of decision and

freedom of mem"ership+ created to meet their mem"ers8 needs through the mar$et "yproducing goods and providing services+ insurance and finance+ 0here decision-ma$ing andany distri"ution of profits or surpluses among the mem"ers are not directly lin$ed to thecapital or fees contri"uted "y each mem"er+ each of 0hom has one vote The Social Economyalso includes private+ formally-organised organisations 0ith autonomy of decision and

freedom of mem"ership that produce non-mar$et services for households and 0hose surpluses+if any+ cannot "e appropriated "y the economic agents that create+ control or finance them9D.

0his (efinition is a$solutel )onsistent 5ith the )on)eptual (elimitation of the "E

refle)te( in the CE?-CM>#Gs Charter of !rinciples of the Social Economysee se)tion +&. ofthis report& 'n national a))ounts terms it )omprises t5o ma*or su$-se)tors of the "E: a themar6et or $usiness su$-se)tor+4an( $ the non-mar6et pro(u)er su$-se)tor& 0his )lassifi)ation is

26 0his (efinition is $ase( on the )riteria esta$lishe( $ the European CommissionGs Manual for (ra5in!up the "atellite >))ounts of Companies in the "o)ial E)onom an( $


21/128


ver useful for (ra5in! up relia$le statisti)s an( analsin! e)onomi) a)tivities in a))or(an)e5ith the national a))ountin! sstems )urrentl in for)e& Aonetheless from a so)io-e)onomi)point of vie5 there is o$viousl a permea$ilit $et5een the t5o su$-se)tors an( )lose ties$et5een mar6et an( non-mar6et in the "E as a result of a )hara)teristi) that all "Eor!anisations share: the are organisations of people 0ho conduct an activity 0ith the main

purpose of meeting the needs of persons rather than remunerating capitalist investors&

>))or(in! to the a$ove (efinition theshared featuresof these t5o su$-se)tors of the "Eare:

% 0he are private in other 5or(s the are not part of or )ontrolle( $ the pu$li)se)torQ

+ 0he are formall-or!anise( that is to sa that the usuall have le!al i(entitQ

. 0he have autonom of (e)ision meanin! that the have full )apa)it to )hoose an((ismiss their !overnin! $o(ies an( to )ontrol an( or!anise all their a)tivitiesQ

/ 0he have free(om of mem$ership in other 5or(s it is not o$li!ator to *oin themQ

1 >n (istri$ution of profits or surpluses amon! the user mem$ers shoul( it arise isnot proportional to the )apital or to the fees )ontri$ute( $ the mem$ers $ut to theira)tivities or transa)tions 5ith the or!anisation&

3 0he pursue an e)onomi) a)tivit in its o5n ri!ht to meet the nee(s of personshousehol(s or families& #or this reason "E or!anisations are sai( to $e organisationsof people+ not of capital0he 5or6 0ith)apital an( other non-monetar resour)es$ut not for capital&

4 0he are (emo)rati) or!anisations& Ex)ept for some voluntar or!anisations thatprovi(e non-mar6et servi)es to househol(s "E primar level or first-tieror!anisations appl the prin)iple of one person one voteS in their (e)ision-ma6in!pro)esses irrespe)tive of the )apital or fees )ontri$ute( $ the mem$ers&8r!anisations at other levels are also or!anise( (emo)rati)all& 0he mem$ers havema*orit or ex)lusive )ontrol of the (e)ision-ma6in! po5er in the or!anisation&

> ver important feature of "E or!anisations that is (eepl roote( in their histor is(emo)rati) )ontrol 5ith eual votin! ri!hts one person one voteS in the (e)ision-ma6in!pro)ess& 'n(ee( in the previousl-mentione( "atellite >))ounts Manual for )ompanies in the"o)ial E)onom that are mar6et pro(u)ers )lasse( in the "&%% an( "&%+ institutional se)tors ofthe Aational >))ounts the (emo)rati) )riterion is )onsi(ere( essential for a )ompan to $e

)onsi(ere( part of the "o)ial E)onom as thesocial utilityof these )ompanies is not usuall$ase( on their e)onomi) a)tivit 5hi)h is an instrument to a non-profit en( $ut on theirpurpose an( on the (emo)rati) an( parti)ipative values that the $rin! to the runnin! of the)ompan&

,o5ever the 5or6in! (efinition of the "E esta$lishe( in this Report also a))epts thein)lusion of voluntar non-profit or!anisations that areproducers of non-mar$et services forhouseholds even if the (o not possess a (emo)rati) stru)ture as this allo5s ver prominent

social action Third Sectoror!anisations that pro(u)esocial or merit goodsof unuestiona$leso)ial utilit to $e in)lu(e( in the "o)ial E)onom&

!.2. The "a,et o business sub(secto o$ the SE

21


22/128

0he mar6et su$-se)tor of the "E is ma(e up in essen)e of )o-operatives an( mutualso)ieties $usiness !roups )ontrolle( $ )o-operatives mutual so)ieties an( other "Eor!anisations other similar )ompanies an( )ertain non-profit institutions servin! "E)ompanies&

>s 5ell as all the features share( $ all "E entities the 5or6in! (efinition in .&% a$ovean( in the European Commission Manual emphasises three essential )hara)teristi)s of "E)ompanies:

a5 They are created to meet their mem"ers8 needs through applying the principle of self-help+ ie they are companies in 0hich the mem"ers and the users of the activity in@uestion are usually one and the same

0he European CommissionGs Manual !ives a (etaile( explanation of the s)ope an(limitations of this )hara)teristi)& 0he )entral o$*e)tive of these )ompanies is to satisfan( solve the nee(s of their mem$ers 5ho are $asi)all in(ivi(uals or families&

'n )o-operatives an( mutual so)ieties the mem$ers an( the users of the a)tivit inuestion are usuall $ut not al5as one an( the same& 0he prin)iple of self-help is atra(itional prin)iple of the )o-operative an( mutual movement& 0he main o$*e)tive ofthese )ompanies is to )arr out a )o-operativise( or mutualist a)tivit to meet the nee(sof their tpi)al mem$ers )o-operativist or mutualist mem$ers 5ho are mainlin(ivi(uals househol(s or families&

't is the )o-operativise( or mutualist a)tivit that (etermines the relationship $et5eenthe user mem$er an( the "E )ompan& 'n a 5or6ersG )o-operative the )o-operativise(a)tivit is emploment for its mem$ers in a housin! )o-operative it is $uil(in! homesfor the mem$ers in a farmin! )o-operative it is mar6etin! the !oo(s pro(u)e( $ themem$ersQ in a mutual so)iet the mutualist a)tivit is to insure the mem$ers et)&

Aaturall in or(er to )arr out the )o-operativise( or mutualist a)tivit to serve themem$ers an instrumental a)tivit nee(s to $e )on(u)te( 5ith other non-mem$erparties on the mar6et& #or example a 5or6ersG )o-operative sells its !oo(s an( servi)eson the mar6et instrumental a)tivit in or(er to )reate or maintain emploment for itsmem$ers )o-operativise( a)tivit&

'n the )ase of mutual so)ieties there is an in(issolu$le insepara$le relationship$et5een $ein! a mutualist mem$er an( $ein! a poli)-hol(er inten(e( re)ipient ofthe mutualGs a)tivit&

'n the )ase of )o-operatives the mem$er an( user relationship is usual $ut is not

al5as in(ispensa$le& "ome )lasses of Gan)illar mem$ersG ma )ontri$ute to the)ompan 5ithout $ein! users of the )o-operativise( a)tivit& 0he examples in)lu(e)apital investors or former user mem$ers 5ho are no lon!er users for lo!i)al *ustifie(reasons retirement amon! othersQ some pu$li) $o(ies ma even $e )ontri$utin!mem$ers of the )ompan& ?rovi(e( that the "E )ompan )hara)teristi)s esta$lishe( inthe 5or6in! (efinition hol( true in)lu(in! (emo)rati) )ontrol $ the user mem$ers the)ompanies that possess these other )lasses of non-user )ontri$utin! mem$ers 5ill formpart of the $usiness su$-se)tor of the "E&

0here ma also $e other "E )ompanies as is the )ase of so)ial enterprises 5heresome mem$ers ma share their o$*e)tives 5ithout stri)tl spea6in! $ein! permanentmem$ers althou!h a transitor asso)iation nonetheless exists& This may even include

certain volunteer activities.Aonetheless 5hat is usual an( relevant is that in these)ompanies there is al5as a re)ipro)al relationship a sta$le $on( $et5een the )ompan

22


23/128


an( those 5ho parti)ipate in its a)tivities 5ith a )ertain )ontinuit sharin! in its ris6san( offerin! some )onsi(eration in respe)t of mem$ership&

0he $enefi)iaries of the a)tivities of "E )ompanies also pla a lea(in! role in these)ompanies 5hi)h )onstitute re)ipro)al soli(arit initiatives set up $ !roups of )itizensto meet their nee(s throu!h the mar6et&

0his (oes not prevent "E )ompanies from un(erta6in! soli(arit a)tions in mu)h5i(er so)ial environments trans)en(in! their mem$ership $ase& 'n the )ase of the )o-operatives their tra(itional rules of operation ma(e them pioneers in applin! theprin)iple of the so)ial responsi$ilit of )ompanies or )orporate responsi$ilit as theserules stimulate an( foster soli(arit me)hanisms the prin)iple of e(u)ation an( so)iala)tion the Gopen mem$ershipG prin)iple the )reation of reserves that )annot $e (ivi(e(amon! the mem$ers et)&& ,o5ever all this (oes not alter the mutual $asis of "E)ompanies 5hi)h )ompete in the mar6et finan)e themselves lar!el throu!h themar6et an( )on(u)t $usiness entailin! ris6s 5ith results on 5hi)h in the final analsisthe provision of servi)es to their mem$ers (epen(&

b) SE companies are mar$et producers+ 0hich means that their output is mainly intendedfor sale on the mar$et at economically significant prices0he E"> 91 )onsi(ers )o-operatives mutual so)ieties hol(in! )ompanies other similar )ompanies an( non-profit institutions servin! them to $e mar6et pro(u)ers&

c5 Bhile they may distri"ute profits or surpluses among their user mem"ers+ this is notproportional to the capital or to the fees contri"uted "y the mem"ers "ut in accordance0ith the mem"er1s transactions 0ith the organisation

0he fa)t that the ma (istri$ute profits or surpluses to their mem$ers (oes not mean thatthe al5as (o so& 0here are man )ases in 5hi)h )o-operatives an( mutual so)ieties ma6e it a

rule or )ustom not to (istri$ute surpluses to their mem$ers& ,ere the point is onl to emphasisethat the prin)iple of not (istri$utin! surpluses to mem$ers is not an essential trait of so)iale)onom )ompanies&

>lthou!h (emo)rati) or!anisation is a share( feature of all "E or!anisations )ertain non-profit voluntar or!anisations that provi(e non-mar6et servi)es to families ma $e part of the"E (espite not possessin! a (emo)rati) stru)ture as 5ill $e seen further on&

#or a )ompan to $e )onsi(ere( part of the "E ho5ever the (emo)rati) )riterion is)onsi(ere( essential& >s the European CommissionGs Manual sas "E )ompanies are)hara)terise( $ (emo)rati) (e)ision-ta6in! $ the mem$ers 5ithout o5nership of the share)apital (eterminin! the )ontrol of the (e)ision-ma6in! pro)ess& 'n man )o-operatives an(

mutual so)ieties the prin)iple of Gone person one voteG ma often $e ualifie( allo5in! some5ei!htin! of votes to refle)t ea)h mem$erGs parti)ipation in the a)tivit& 't ma also happen that$usiness !roups set up $ (ifferent "E )ompanies 5ei!ht the votes not onl to refle)t the(ifferent (e!rees of a)tivit of the mem$ers of the !roup $ut also in or(er to a)6no5le(!e the(ifferen)es $et5een them in terms of ran6 an( file mem$ership num$ers& 8ther $usiness !roupsma $e set up an( )ontrolle( $ "E or!anisations to improve the (eliver of their o$*e)tives forthe $enefit of their mem$ers 5ith the parent or!anisations )ontrollin! the (e)ision-ma6in!pro)esses& 0hese !roups also form part of the "E&

'n some )ountries )ertain so)ial e)onom )ompanies )reate( $ 5or6ers in or(er to)reate or maintain *o$s for themselves ta6e the form of limite( or pu$li) limite( )ompanies&0hese too ma $e )onsi(ere( (emo)rati) or!anisations 5ith (emo)rati) (e)ision-ma6in!

pro)esses provi(e( that the ma*orit of their share )apital is o5ne( $ the 5or6in! partnersan( share( euall amon! them&

23


24/128

8ther so)ial e)onom )ompanies 5hi)h also a(opt le!al forms other than that of a )o-operative have $een )reate( to en)oura!e pro)esses of so)ial in)lusion throu!h 5or6 an( otherso)ial utilit purposes& 0hese )ompanies also emplo parti)ipative (e)ision-ta6in! pro)essesnone of 5hi)h is $ase( on the o5nership of )apital&

>))or(in!l the (ifferent !roups or families of a!ents in the mar6et or $usiness su$-se)tor of the so)ial e)onom are as follo5s:

A. Co(o&eatives

>s mentione( in the European CommissionGs Manual )o-operatives in the European2nion are su$*e)t to ver (ifferent an( varie( $o(ies of la5& Depen(in! on the )ountr thema $e )onsi(ere( )ommer)ial )ompanies a spe)ifi) tpe of )ompan )ivil asso)iations oror!anisations that are (iffi)ult to )atalo!ue& 0here ma even $e a total la)6 of spe)ifi) le!alre!ulation o$li!in! them to follo5 the rules for )ompanies in !eneral 5hi)h normall means)ommer)ial )ompanies& 'n su)h )ases it is the )o-operativeVs mem$ers 5ho in)lu(e theoperatin! rules in the arti)les of asso)iation 5hi)h ena$le a )ompan to $e i(entifie( as a [)o-operativeV&

'n terms of the $usiness the )on(u)t )o-operatives are foun( in $oth the non-finan)ial)orporations se)tor an( the finan)ial )orporations se)tor an( in pra)ti)all ever 6in( ofa)tivit&

'n !eneral it 5oul( $e fair to sa that the vast ma*orit of )o-operatives in the European2nion share a )ommon )ore i(entit $ase( on the histori)al ori!ins of the )o-operativemovement an( on the a))eptan)e to varin! (e!rees of the operatin! prin)iples (etaile( in theStatute for a European Co-operative Society3SCE59&

>s these operatin! prin)iples a(here to ea)h an( ever one of the )hara)teristi)s of)ompanies in the "E set out at the $e!innin! of this )hapter co-operatives are the first great"usiness agent in the social economy& Co-operatives are self-help or!anisations set up $)itizens the are private an( are not part of the pu$li) se)tor 5hi)h are formall-or!anise( an(have autonom of (e)ision& 'n or(er to satisf the nee(s of their mem$ers or )on(u)t their$usiness the operate on the mar6et from 5hi)h the o$tain their main sour)e of fun(in!& 0heare or!anise( (emo)rati)all an( their profits are not (istri$ute( in proportion to the share)apital )ontri$ute( $ their mem$ers& 0he %991 E"> )onsi(ers )o-operatives to $e mar6etpro(u)er institutional units&

B. Mutual societies

Li6e the )o-operatives mutual so)ieties in the European 2nion are !overne( $ ver(iverse $o(ies of la5& Depen(in! on their prin)ipal a)tivit an( the tpe of ris6 the insuremutual so)ieties are (ivi(e( into t5o lar!e )lasses or )ate!ories& 8ne !roup )omprises mutualprovi(ent so)ieties& 0heir fiel( of a)tivit mainl )onsists of )overin! the health an( so)ial5elfare ris6s of in(ivi(uals& 0he se)on( !roup is mutual insuran)e )ompanies& 0heir prin)ipala)tivit usuall )entres on insurin! !oo(s vehi)les fire thir( part insuran)e et)& althou!hthe )an also )over life insuran)e relate( areas&

0he )on)ept of mutual so)iet emploe( in the European CommissionGs Manual is asfollo5s: an autonomous asso)iation of persons le!al entities or natural persons unite(

28 GWhereasG )lauses 4 to %; of Coun)il Re!ulation EC Ao %/.1Y+;;. of ++ Jul +;;. on the "tatute fora European Co-operative "o)iet "CE&

24


25/128


voluntaril for the primar purpose of satisfin! their )ommon nee(s in the insuran)e life an(non-life provi(en)e health an( $an6in! se)tors 5hi)h )on(u)ts a)tivities that are su$*e)t to)ompetition& 't operates a))or(in! to the prin)iple of soli(arit $et5een the mem$ers 5hoparti)ipate in the !overnan)e of the $usiness an( ans5ers to the prin)iples of the a$sen)e ofshares free(om of mem$ership not ex)lusivel profit-ma6in! o$*e)tives soli(arit (emo)ra)an( in(epen(en)e+9&

0hese operatin! prin)iples 5hi)h are ver similar to those of the )o-operatives a!ain)ompl 5ith all the )hara)teristi)s of )ompanies in the "E mentione( previousl so mutual

societies are the second great "usiness agent in the social economy&

,o5ever follo5in! the European CommissionGs Manual so)ial se)urit mana!ement$o(ies an( in !eneral mutual so)ieties of 5hi)h mem$ership is o$li!ator an( those )ontrolle($ )ompanies that are not part of the "o)ial E)onom are ex)lu(e( from the $usiness su$-se)torof the "E&

C. Social econo"# business )ou&s

0he European CommissionGs Manual also )onsi(ers )ertain $usiness !roups to $e "Emar6et a!ents& >))or(in! to the Manual 5hen an "E )ompan or )oalition of )ompanies oran other "E or!anisation sets up an( )ontrols a $usiness !roup to improve the (eliver of itso$*e)tives for the $enefit of its ran6 an( file mem$ers this !roup is )onsi(ere( an "E !roupre!ar(less of the le!al form it a(opts& 'n the European 2nion there are !roups that en!a!e ina!ri-foo( in(ustrial (istri$ution an( retail so)ial 5elfare an( other a)tivities& 0here are also"E $an6in! an( mutual so)iet !roups& 0he are all in)orporate( un(er (ifferent le!al forms&

-. Othe social econo"# co"&anies

'n a((ition the European CommissionGs Manual )onsi(ers that the mar6et a!ents in the"E in)lu(e a !amut of )ompanies 5ith le!al forms other than those of )o-operatives an( mutualso)ieties $ut 5hi)h operate a))or(in! to prin)iples that in essen)e fit the (efinition of so)iale)onom )ompanies esta$lishe( in this report&

>mon! the non-finan)ial )ompanies the Manual )ites a variet of )ases su)h asinte!ration an( other so)ial a)tion or!anisations that operate on the mar6et an( a(opt (ifferentle!al forms in man )ases as )o-operatives an( in others as )ommer)ial or similar )ompanies&=enerall 6no5n as social enterprises+ the are )ontinuousl en!a!e( in pro(u)in! !oo(san(Yor servi)es have a hi!h (e!ree of autonom an( a si!nifi)ant level of finan)ial ris6 usepai( 5or6 an( are mar6et oriente( meanin! that a si!nifi)ant proportion of the or!anisationGs

in)ome is (erive( from the mar6et servi)es sol( (ire)tl to users or from )ontra)tualtransa)tions 5ith the pu$li) authorities& 't shoul( also $e note( that the are private )ompaniesset up $ !roups of )itizens there is (ire)t parti)ipation $ the persons affe)te( $ the a)tivittheir (e)ision-ma6in! po5er is not $ase( on the o5nership of )apital (istri$ution of surplusesan( profits is limite( an( the have the expli)it o$*e)t of $enefitin! the )ommunit


26/128

'n some )ountries there are also )ertain non-finan)ial )orporations set up in or(er to)reate or maintain sta$le emploment for their mem$ers in 5hi)h the ma*orit of shares areo5ne( $ the 5or6ers these )ontrol the !overnin! $o(ies an( the )ompan is or!anise( on a5or6ersV self-mana!ement $asis& While these )ompanies often ta6e the form of pu$li) limite()ompanies or limite( )ompanies the 5or6ersV euit is euall (ivi(e( amon! them so these)ompanies are in fa)t )hara)terise( $ (emo)rati) (e)ision-ma6in! pro)esses an( euita$le(istri$ution of profits& 0he $est-6no5n example of this tpe of )ompan is the la$our )ompansociedad la"oral in "pain&

Non-financial corporations 0ith ma&ority control vested in the 0or$ers+ democraticdecision-ma$ing processes and e@uita"le distri"ution of profits should also "e included in themar$et su"-sector of the SE

Lastl in some )ountries the finan)ial )orporations se)tor in)lu(es savin!s an( loansso)ieties an( savin!s $an6s 5hi)h in their essential aspe)ts fit the (efinition of so)iale)onom )ompanies !iven in this report&

E. Non(&o$it institutions sevin) social econo"# entities

0he onl non-profit institutions 5hi)h are in)lu(e( in this !roup are those servin!)ompanies in the so)ial e)onom& 0hese or!anisations are fun(e( $ fees or su$s)riptions fromthe !roup of )ompanies in uestion 5hi)h are )onsi(ere( paments for the servi)es performe(i&e& sales& Conseuentl the non-profit institutions in uestion are mar6et pro(u)ers an( arepla)e( in the [non-finan)ial )orporationsV se)tor if the serve )o-operatives or similar so)iale)onom )ompanies in this se)tor or in the [finan)ial institutionsV se)tor if the are at theservi)e of )re(it )o-operatives mutual so)ieties or other so)ial e)onom finan)ialor!anisations&

3.3. The non-market sub-sector of the Social Economy

The great majority of this sub-sector is composed of associations and foundations,although organisations with other legal forms may also be found. It is made up of all the SEorganisations that the national accounts criteria consider non-market producers, i.e. those thatsupply the majority of their output free of charge or at prices that are not economicallysignificant.

As mentioned in 3.1 above, they areprivate, formally-organised entities with autonomyof decision and freedom of membership that produce non-market services for families andwhose surpluses, if any, cannot be appropriated by the economic agents that create, control or

finance them. In other words, these are non-profit organisations in the strict sense of the term,since they apply the principle of non-distribution of profits or surpluses (the non-distributionconstraint), and as in all social economy entities, individuals are the true beneficiaries of theservices they produce.

The national accounts have a specific institutional sector, S.15, called 'non-profitinstitutions serving households' (NPISH), to differentiate them from other sectors. The ESA 95defines this sector as consisting of non-profit institutions which are separate legal entities,which serve households and which are private other non-market producers. Their principalresources, apart from those derived from occasional sales, come from voluntary contributions incash or in kind from households in their capacity as consumers, from payments made bygeneral governments and from property income (ESA 95, 2.87).

The NPISH sector includes a variety of organisations, mostly associations, that performnon-market activities for their members (entities of a mutualist nature) or for groups of non-

26


27/128


member citizens (general interest entities). Most of these entities operate democratically andpossess the characteristic features of the SE. They include charities, relief and aidorganisations, trades unions, professional or learned societies, consumers' associations, politicalparties, churches or religious societies and social, cultural, recreational and sports clubs.

As stated in section 3.1 above, certain voluntary non-profit organisations that areproducers of non-market services for households are included in the SE under the name ofsocial action Third Sectordespite not possessing a democratic structure, because the servicesthey provide free of charge are social or merit goodsof unquestionable social utility.

NPISH that do not possess legal personality or are not very large, which the ESA 95places in the Household sector, S.14 (ESA 95, 2.76), also form part of the SE.

Lastly, there may be other private, non-profit institutions (NPI), funded by non-financialcorporations or financial corporations, that produce cultural, recreational, social etc. serviceswhich they supply free of charge to individuals. Although the 1995 ESA conventionallyconsiders these to be serving the non-financial or financial corporations in question andtherefore includes them in the respective (market) institutional sectors (ESA 95, 2.23 and 2.40),always providing that they meet the requirements set out in the definition they form part of thenon-market sub-sector of the SE.

NPISH that are market producers engaged in producing non-financial market goods andservices, financial intermediation, or auxiliary financial activities are excluded from this group,as are business associations funded by voluntary parafiscal fees paid by non-financial orfinancial corporations in return for the services they provide.

3.4. The Social Economy: pluralism and shared core identity

The SE has positioned itself in European society as a pole of social utilitybetween thecapitalist sector and the public sector. It is certainly composed of a great plurality of actors. Oldand new social needs all constitute the sphere of action of the SE. These needs can be met bythe persons affected through a business operating on the market, where almost all the co-operatives and mutual societies obtain the majority of their resources, or by associations andfoundations, almost all of which supply non-market services to individuals, households orfamilies and usually obtain most of their resources from donations, membership fees, subsidies,etc.

It cannot be ignored that the diversity of the SE organisations' resources and agents leadsto differences in the dynamics of their behaviour and of their relations with their surroundings.For instance, volunteers are mainly found in the organisations of the non-market sub-sector

(mostly associations and foundations), while the market sub-sector of the SE (co-operatives,mutual societies and similar companies) has practically no volunteers except in socialenterprises; these are an evident example of a hybrid of market and non-market with a widediversity of resources (monetary from the market, public subsidies and voluntary work) and ofagents within the organisation (members, employees, volunteers, companies and public bodies).

This plural SE which is asserting and consolidating its part in a plural society does notsignify a hotchpotch with no identity or interpretative value. On the contrary, the shared coreidentity of the SE is fortified by a large and diverse group of free and voluntary microeconomicentities created by civil society to meet and solve the needs of individuals, households andfamilies rather than to remunerate or provide cover for investors or capitalist companies, inother words, by not-for-profit organisations. Over the past 200 years, this varied spectrum

(market and non-market, of mutual interest or of general interest) has shaped the Third Sector,as identified here through the Social Economy approach.

27


28/128

28


29/128


CHAPTER

MAIN THEORETICAL APPROACHES RELATE+ TO THE SOCIALECONOMY CONCEPT

.1. 'he 'hird !ector as a #eetin point

.2. 'he on-Profit ranisation approach

.%. 'he !olidar$ "cono#$ approach

.. ther approaches

./. Rese#+lances and differences +et(een these approaches and the!ocial "cono#$ concept

4.1. The Third Sector as a meeting point

Although the term 'third sector' has mostly been used in the English-speaking world todescribe the private non-profit sector that is largely composed of associations and foundations,'third sector' is also used in Continental Europe and in other parts of the world as a synonym forthe social economy (SE) described in the previous chapter.

In the United States of America, Levitt (1973)30was one of the first to use the expressionthird sector, identifying it with the non-profit sector31.In Europe, the same term began to be

used a few years later to describe a sector located between the public sector and the capitalistsector, far closer to the concept of the SE32.

The Third Sector (TS) has become a meeting point for different concepts, fundamentallythe 'non-profit sector' and the 'social economy' which, despite describing spheres with largeoverlapping areas, do not coincide exactly. Moreover, in the theoretical approaches that havebeen developed from these concepts, the TS is assigned different functions in the economies oftoday.

4.2. The Non-Profit Organisation approach

4.2.1.The Non-Profit Organisation (NPO) concept

The main theoretical approach that addresses the TS, apart from the SE approach, is ofEnglish-speaking origin, as mentioned above: literature on the Non-Profit Sector or Non-profitOrganisations (NPO) first appeared 30 years ago in the United States. In essence, this approach

30 Levitt 0&: The Third Sector Ne0 Tactics for a ?esponsive Society+ #ivision of American'anagement Associations+ Ne0 or$+ HIJK31 Coin)i(in! 5ith the start of resear)h $ the Commission on ?rivate ?hilanthrop an( ?u$li) Aee(s the#iler Commission on the e)onomi) so)ial an( politi)al importan)e of the non-profit se)tor sponsore( $the Ro)6efeller #oun(ation 5hi)h $e!an in %94.&32 't 5as Ja)ues Delors 5ho first use( it in this sense in %949 at the 2niversit of ?arisNDauphine&"u$seuentl a num$er of ma*or stu(ies on the "E Jeantet +;;3 have $een )on(u)te( un(er the nameof the 0hir( "e)tor Defourn an( Monzn %99+ or 0hir( "stem C'R'EC +;;;&

29


30/128

only covers private organisations which have articles of association forbidding them todistribute surpluses to those who founded them or who control or finance them33.

The historical roots of this concept are linked to the philanthropic and charitable ideasthat were deeply-rooted in 19th century Britain and in the countries it influenced. The renownof the British charitiesand USphilanthropic foundationshas given rise to terms such as thecharitable sectorand the voluntary sector, which are included in the wider concept of the Non-Profit Sector.

The modern concept of the Non-Profit Sector has been more precisely defined anddisseminated widely throughout the world by an ambitious international research project whichbegan in the early 1990s, spearheaded by Johns Hopkins University (Baltimore, USA), todiscover and quantify its size and structure, analyse its development prospects and evaluate itsimpact on society.

The different phases of the project cover the non-profit sector in 36 countries of the fivecontinents34.

The organisations that this project examines are those that met the five key criteria in the'structural-operational definition'35of non-profit organisations. They are, therefore:

a) Organisations, i.e. they have an institutional structure and presence. They areusually legal persons.

b) Private, i.e. institutionally separate from government, although they may receivepublic funding and may have public officials on their governing bodies.

c) Self-governing, i.e. able to control their own activities and free to select and dismisstheir governing bodies.

d) Non-profit distributing, i.e. non-profit organisations may make profits but these mustbe ploughed back into the organisation's main mission and not distributed to theowners, members, founders or governing bodies of the organisation.

e) Voluntary, which means two things:firstly, that membership is not compulsory orlegally imposed and secondly, that they must have volunteers participating in theiractivities or management.

4.2.2. The NPO approach in the 1993 SNA

The United Nations has published aHandbook on Non-Profit Institutions in the System ofNational Accounts36 (NPI Handbook). The Handbook's identification of the non-profitinstitutions is based on a definition of the non-profit sector drawn from Salamon and Anheier'sNPO approach as described in the previous paragraph. On this basis, the NPI Handbookidentifies a large, heterogeneous set of non-profit organisations which can belong to any of the

33 Weis$ro( & %941: 0o5ar(s a theor of the voluntar nonprofit se)tor in a three se)tore)onomS in ?helps E& E(&: Altruism+ morality and economic theory+ Ae5 @or6 Russell "a!e#oun(ation&

Weis$ro( & %944: The Loluntary Nonprofit Sector+Lexin!ton &34 "alamon L&M&Q >nheier ,&I&Q List R&Q 0oepler "&Q "o6olo5s6i W& et al %999: Glo"al Society#imensions of the Nonprofit Sector0he Johns ,op6ins Comparative nonprofit ?ro*e)t ))ounts 2nite( Aations Ae5 @or6+;;.&

30


31/128


five institutional sectors that make up the system of national accounts, including 'generalgovernment' (S.13)37.There are non-profit institutions in the 'non-financial corporations' sector(S.11), the 'financial corporations' sector (S.12) and the 'households' sector (S.14). Lastly, 'non-profit institutions serving households' or NPISH (S.15) have their own separate institutionalsector in the national accounts system. These organisations take a great variety of legal forms,although the majority are associations and foundations, and are created for very differentpurposes: to provide services to the people or companies that control or finance them; to carryout charitable or philanthropic activities to benefit people in need; to supply non-profit marketservices such as health, education, leisure activities, etc.; to defend the interests of pressuregroups or the political programmes of like-minded citizens, etc.

However, the NPI Handbook considers that such major groups as co-operatives, mutualsocieties, social enterprises and others do not belong within the non-profit sector.

As will be seen further on, not all the non-profit institutions that the NPI Handbookconsiders to lie within its scope form part of the SE concept.

4.3. The Solidary Economy approach

The concept of the solidary economydeveloped in France and certain Latin Americancountries during the last quarter of the 20th century, associated to a large degree with the majorgrowth that the TS has experienced in the area of organisations that produce and distributesome of what are known as social goods or merit goods.Merit goods are those on which thereis a broad social and political consensus that they are essential to a decent life and musttherefore be made available to the entire population, irrespective of income or purchasingpower. Consequently, it is considered that government should provide for the production anddistribution of these goods, whether ensuring that they are provided free of charge orsubsidising them so that they may be obtained at well below market prices.

During the height and consolidation of the Welfare State, universal enjoyment of themost important of these merit goods, such as health services and education, has beenguaranteed by the governments of most of the developed societies in Europe. In recent decades,however, new social needs have emerged that neither the public sector nor the traditionalcapitalist sector are solving and which affect numerous groups at risk of social exclusion. Theseproblems are related to the living conditions of elderly people, mass long-term unemployment,immigrants, ethnic minorities, the handicapped, reintegration of ex-prisoners, abused women,the chronically ill, etc.

It is in these areas that the some organisations which are typical of the SE (co-operativesand, above all, associations) have seen considerable expansion. This sector simultaneously

brings together a set of new organisations and new fields of action. Compared to the classic SEagents, it presents three distinctive features: a) the social demands it attempts to address, b) theactors behind these initiatives and c) the explicit desire for social change38.

Based around these three aspects, the concept of the solidary economy developed inFrance from the 1980s onwards. It corresponds to an economy in which the market is onecomponent, possibly the most important, but not the only one. The economy revolves aroundthree poles: the market, the State and reciprocity. These three poles correspond to market,

37 0he A?' ,an($oo6 )onsi(ers some or!anisations that the %99. "A> in)lu(es in "&%. the G!eneral!overnmentG se)tor to $e Guasi-non-!overnmental or!anisationsG i&e& self-!overnin! an( institutionall

separate from !overnment A?' ,an($oo6 para!raphs& +&+; an( +&++&38 #avreauL& an( Faillan)ourt@& +;;%: ULe mo(le u$)ois (Z)onomie so)iale et soli(aireU?EC'A ?evue internationale de l7conomie sociale+ nT +7%&

31


32/128

redistribution and reciprocity principles39.The latter refer to a non-monetary exchange in thearea of primary sociability that is identified, above all, in associationism 40.

In short, the economy is plural in nature and cannot be reduced to strictly commercial andmonetary terms. The solidary economy approach is an unprecedented attempt to hook up thethree poles of the system, so specific solidary economy initiatives constitute forms that arehybrids between the market, non-market and non-monetary economies. They do not fit in withthe market stereotype of orthodox economics41and their resources, too, have plural origins:market (sales of goods and services), non-market (government subsidies and donations) andnon-monetary (volunteers).

As well as this concept of the solidary economy, which has its epicentre in France,another view of the solidary economy with a certain presence in some Latin American countriessees it as a force for social change, the bearer of a project for an alternative society to neo-liberal globalisation42.Unlike the European approach, which considers the solidary economy tobe compatible with the market and the State, the Latin American perspective is developing thisconcept as a global alternative to capitalism.

4.4. Other approaches

Related to the approach described in the previous paragraph, other theoreticaldevelopments directly propose replacing market economies where the means of production areprivately-owned with other ways of organising the production system. They include: a) thealternative economy43, with roots in the anti-establishment movements that developed in Franceafter May 1968; b) thepopular economy, promoted in various South American countries since1980 with very similar views to the Latin American version of the solidary economy, so muchso that it is also termed the solidary popular economy. The popular economy excludes any typeof employer/employee relationship and considers work the main factor of production44.

4.5. Resemblances and differences between these approaches and the Social

Economy concept

Section 3.4 explained how the SE concept established in this report not only sees the SEas being part of a plural economy and society but also as itself being composed of a greatplurality of actors. From this point of view, the solidary economy approach not only presentsimportant elements of convergence with the SE approach, from the practical point of view itmay also be asserted that absolutely all the organisations that are considered part of the solidaryeconomy are also unquestionably part of the SE. The same may be said of other theorydevelopments such as the social usefulness third sector (Lipietz, 2001), social enterprise

(Borzaga and Defourny, 2001) or new social economy(Spear, Defourny et al, 2001). In thesame way as most of the associative experiences included in the alternative economyor thepopular economy, all of these constitute partial elements of the same group, certainly multi-faceted but possessing a shared core identity and a personality that differentiates it from theother institutional sectors in the economic system.

39 ?olani I& %97.:.a Grande Transformation+ =allimar( ?ars&40 Laville J&L& %99/&41 Eme ))in "o)ial iresQ an( Razeto L& %99.: Empresas de tra"a&adores y econom)a de mercado+?E0 Chile&

32


33/128


Because of their importance, it is worth pausing to examine the main resemblances anddifferences between the SE approach and concept and that of the NPO approach.

As regards the resemblances between the SE and the NPO approaches, of the five criteriathat the NPO approach establishes to distinguish the TS sphere (see 4.2.1) four are alsorequired by the SE approach (section 3.1): private, formally organised organisations withautonomy of decision (self-governing) andfreedom of membership(voluntary participation).

However, there are three TS delimitation criteria where the NPO and SE approachesclearly differ:

a) the non-profit criterion

In the NPO approach, all the organisations that distribute profits, in any way, to thepersons or organisations that founded them or that control or fund them are excluded from theTS. In other words, TS organisations must apply the principle of non-distribution of profits orsurpluses (the non-distribution constraint) strictly (see section 4.2.1. above). As well as notdistributing profits, the NPO approach demands that TS organisations be not-for-profit, in otherwords, they may not be created primarily to generate profits or obtain financial returns (NPIhandbook, paragraph 2.16).

In the SE approach, the non-profit criterion in this sense is not an essential requirementfor TS organisations. Naturally, the SE approach considers that many organisations whichapply the non-profit criterion strictly belong in the TS: a broad sector of associations,foundations, social enterprises and other non-profit organisations serving persons and familiesthat meet the NPO non-profit criterion and all the SE organisation criteria established in thisreport (section 3.1). However, co-operatives and mutual societies, which form a decisivenucleus of the SE, are excluded from the TS by the NPO approach because most of themdistribute part of their surpluses among their members45.

b) the democracy criterion

A second difference between the NPO approach and the SE approach is the application ofthe democracy criterion. The NPO approach's requirements for considering that an organisationbelongs to the TS do not include such a characteristic element of the SE concept as democraticorganisation. Consequently, in the NPO approach the TS includes many, and very important,non-profit organisations that do not meet the democracy criterion and which, therefore, the SEapproach excludes from the TS. In effect, many non-profit institutions in the non-financialcorporations and financial corporations sectors sell their services at market prices and do notmeet the democratic organisation principle. These non-profit organisations that are considered

45 0he "E approa)h in)lu(es an important )urrent Chaves an( Monzn +;;% that )onsi(ers )o-operatives an( mutual so)ieties to $e non-profit in $oth senses that of applin! the non-(istri$ution)onstraint amon! their mem$ers an( that of $ein! not-for-profit i&e& set up primaril to provi(e a

parti)ular servi)e to their mem$ers rather than to o$tain finan)ial returns& >s re!ar(s the appli)ation of thenon-(istri$ution )onstraint it )onsi(ers that the mem$ers re)eive onl a part of the surpluses in the formof G)o-operative returnsG an( these )onstitute returns !enerate( $ the mem$ers themselves $ )on(u)tin!the )o-operativise( transa)tions 5ith the )o-operative so these surpluses are not )onsi(ere( profits& Aor(o mem$ers re)eive an profit 5hen their )ontri$utions to the share )apital are liui(ate( as the arerepai( at nominal value possi$l up(ate( to maintain their pur)hasin! po5er& 'f the )o-operative is(issolve( the net assets after settlin! up the (e$ts in)lu(in! the mem$ersG )ontri$utions to the share)apital )annot $e (istri$ute( amon! the mem$ers& >s re!ar(s the se)on( meanin! of the non-profit)riterion it is !enerall a))epte( in the "E approa)h that )o-operatives an( mutual so)ieties to!ether 5ith

other 0" or!anisations are not-for-profit $o(ies i&e& the are set up to solve nee(s an( offer servi)es toin(ivi(uals househol(s or families rather than to remunerate or provi(e )over for investors or )apitalist)ompanies&

33


34/128

part of the TS by the NPO approach and not by the SE approach include certain hospitals,universities, schools, cultural and art bodies and other institutions which do not meet thedemocracy criterion, sell their services on the market and meet all the requirements establishedby the NPO approach.

The SE approach generally excludes from the TS any non-profit entities that do notoperate democratically although, as pointed out in section 3.1 of this report, it is accepted thatvoluntary non-profit organisations which provide non-market services to persons or familiesfree of charge or at prices which are not economically significant can be included in the SE.These non-profit institutions prove their social usefulnessby providing merit goods or servicesfree to individuals or families.

c) the criterion of serving people

#inall a thir( (ifferen)e lies in the inten(e( re)ipients of the servi)es provi(e( $ the0" or!anisations as their s)ope an( priorities (iffer $et5een the A?8 an( the "E approa)hes&

'n the "E approa)h the main aim of all the or!anisations is to serve people or other "Eor!anisations& 'n first-tier or!anisations most of the $enefi)iaries of their a)tivities arein(ivi(uals househol(s or families 5hether as )onsumers or as in(ivi(ual entrepreneurs orpro(u)ers& Man of these or!anisations onl a))ept in(ivi(uals for mem$ership& 8n o))asionthe ma also allo5 le!al persons of an tpe to $e)ome mem$ers $ut in all )ases the "EGs)on)erns )entre on human $ein!s 5ho are its reason for $ein! an( the !oal of its a)tivities&

0he A?8 approa)h on the other han( has no )riterion of )onsi(erin! servi)e to peopleas a priorit o$*e)tive& Aon-profit or!anisations )an $e set up $oth to provi(e servi)es topersons an( to provi(e them to )orporations that )ontrol or fun( them A?' ,an($oo6para!raph +&+%& 0here ma even $e first-tier non-profit or!anisations )ompose( ex)lusivel of)apital-$ase( )ompanies 5hether finan)ial or non-finan)ial& >s a result the fiel( analse( $the A?8 approa)h is ver hetero!eneousl (efine(&

'n )on)lusion the a$ove resem$lan)es an( (ifferen)es $et5een the A?8 an( "Eapproa)hes to!ether 5ith the existen)e of a share( spa)e )ompose( of or!anisations in)lu(e($ $oth ma6e it possi$le to appre)iate important )on)eptual an( metho(olo!i)al (iver!en)es5hi)h (o not allo5 the 0" to $e )onfi!ure( $ simpl a((in! to!ether the !roups ofor!anisations )onsi(ere( $ the t5o approa)hes&

Con)ernin! the (ifferen)es $et5een the t5o approa)hes as re!ar(s the fun)tions that the0" )an perform in (evelope( e)onomies so far as the A?8 approa)h is )on)erne( the TS lies"et0een the State and the mar$et/3an( the mission of its most )hara)teristi) nu)leus the so)ial

thir( se)tor )onsists in satisfin! a )onsi(era$le uantit of so)ial nee(s that are not $ein! meteither $ the mar6et (ue to a la)6 of solvent (eman( 5ith pur)hasin! po5er or $ the pu$li)se)tor as pu$li) fun(in! is in)apa$le of (oin! so ma6in! it essential to turn to a thir( tpe ofresour)es an( motivations& 0he >n!lo-"axon )on)ept $ase( on volunteers charities in


35/128


#or the "E approa)h the 0" is not lo)ate( $et5een the mar6et an( the state $ut "et0eenthe capitalist mar$et and the pu"lic sectorM& #rom this point of vie5 in (evelope( so)ieties the0" is positione( as apole of social utilityma(e up of a $roa( set of private or!anisations thatare )reate( to meet so)ial nee(s rather than to remunerate )apitalist investors&

>t all events the )on)ept of the 0" (evelope( $ the "E (oes not )onsi(er it a resi(ualse)tor $ut an institutional pole of the sstem 5hi)h to!ether 5ith the pu$li) se)tor an( the)apitalist private se)tor is a 6e fa)tor for )onsoli(atin! 5elfare in (evelope( so)ieties $helpin! to solve some of their most prominent pro$lems su)h as so)ial ex)lusion lar!e-s)alelon!-term unemploment !eo!raphi)al im$alan)es lo)al self-!overnment an( fairer in)omean( 5ealth (istri$ution amon! others&

2nli6e the A?8 approa)h 5hi)h onl sees a )harita$le an( philanthropi) fun)tion in the0" (evelopin! uni-(ire)tional soli(arit initiatives the "E promotes $usiness initiatives 5ithre)ipro)al soli(arit amon! its initiators $ase( on a sstem of values 5here (emo)rati)(e)ision ma6in! an( the priorit of people over )apital in the (istri$ution of surpluses prevail&

The SE does not &ust see people in need as the passive "eneficiaries of socialphilanthropy+ it also raises citizens to the status of active protagonists of their o0n destiny

47 Caille (2003): Sur les concepts dconomie en gnral et dconomie Solidaire en particulier,Revue

du Mauss, N 21, p. 215-236.48 Defourny, J. and Monzn, J.L. (1992): conomie Sociale. Entre conomie capitaliste et conomiepublique, De Boeck-Wesmael, Bruxelles.

35


36/128

CHAPTER 5

COMPARATI-E ANALYSIS O) THE PRE-AILIN +E)INITIONS RELATIN

TO THE CONCEPT O) THE SOCIAL ECONOMY IN EACH EUROPEANUNION MEM(ER STATE

/.1. Concepts prevailin in each countr$

/.2. 'he !ocial "cono#$ actors in the #e#+er states of the "uropean 0nion

.1. Conce&ts &evailin) in each count#

0he so)ial an( e)onomi) realit 5hi)h in this 5or6 5e refer to as the ["o)ial E)onomVis 5i(esprea( an( in evi(ent expansion throu!hout the European 2nion& ,o5ever this term as5ell as its s)ientifi) )on)ept is not unam$i!uous a)ross all the (ifferent )ountries of the 2nionin some )ases not even 5ithin a sin!le )ountr usuall )oexistin! 5ith other terms an( similar)on)epts& 0he purpose of this se)tion of the 5or6 is pre)isel to she( li!ht on the (iversit of)on)epts an( terms existin! in Europe to refer to this realit&

'n the previous )ontext part of this resear)h has $een (ire)te( on the one han( toassessin! the level of re)o!nition of the "o)ial E)onom in three important spheres that is thatof the pu$li) a(ministrations the a)a(emi) an( s)ientifi) 5orl( an( the "o)ial E)onom se)toritself in ea)h )ountr an( on the other han( to i(entif an( assess other similar )on)epts& 0his5or6 has $een )arrie( out in a))or(an)e 5ith the metho(olo! use( in )hapter % or the 5or6

The enterprises and organizations of the third system A strategic challenge for employmentFivet an( 0hir in C'R'EC +;;; in 5hi)h the thir( sstem 5as assimilate( into the "o)ialE)onom&

0he !atherin! of information from primar sour)es has $een $ase( on the semi-openuestion tar!ete( at our )orrespon(ents see appen(ix all of 5hom are privile!e( 5itnessesan( have expert 6no5le(!e of the )on)ept of "o)ial E)onom an( similar ones an( of therealit of this se)tor in their )ountries& 0he uestionnaire )ontaine( semi-)lose( uestions)on)ernin! the "o)ial E)onom an( similar notions in the (ifferent )ountries of the 2nion& 0he)orrespon(ents are universit resear)hers professionals from the fe(erative an( representativestru)tures of the se)tor in the )ountries an( top of

ciriec 2007 - the social economy in the european union

Documents