Social Economy Poland

8/8/2019 Social Economy Poland

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We invite you to take a tourof its history.

Its current shape and size.

Its future perspectives.

The SocialEconomyin Poland


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Social Enterprises and the

Social Economy in Poland

Poland has progressed through aprofound transformation of its social,political and economic structuressince the fall of communism in 1989.The national economy has beengrowing at a remarkable pace: 6.5%

GDP growth in 20071

, average wageshave been increasing and indicators ofstandard of living have been impro-ving; however, national statistics donot reect the challenges that manyPoles continue to face in their daily li-ves. Although the unemployment ratedeclined from nearly 20%2 in 2002 to11.1% in 2008, it remains among thehighest in the EU3. The decrease inthe unemployment rate is attributedlargely to mass migration of Poles to

the Western European countries thatopened their labor markets to citizensof new member states, rather than to

systemic solutions or the growth inGDP. Moreover, in reality, unemploy-ment varies greatly among regions:in the Northern and Southern mostregions, it remains at rates of 18%(Warmisko-Mazurskie Region) and15% (witokrzyskie Region) respecti-

vely4. It is also signicant that 21% of

the population is at risk of falling intopoverty, the highest rate in Europealongside Lithuania5.

The low living standards result in alarge part from the consequencesof the structural changes that tookplace during the transition from acentralized to a market economy.

Vulnerable social groups suchas former employees of collectivefarms, women over 50 years of age,social minorities, youth between theages of 18-24 have particularlylimited opportunities on the quicklychanging and highly competitivelabor market. The physically and

mentally disabled, for example,have a 20% employment rate, thelowest in the EU6. Such highly vul-nerable social groups oen lack the

The social economy is not only theresult of legal resolutions and acts.It is not only a question of socialawareness, though public support isvery signicant. The social economyis a social movement that shouldlead to a new vision for Polandsdevelopment.

Jerzy Hausner,former Minister of the Ministry of Labor and Social Policyand former deputy Prime Minister

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1. Central Statistical Oce (GUS).2. Eurostat.3. Central Statistical Oce (GUS), March 2008.

4. Central Statistical Oce (GUS), March 2008.5. Eurostat, 2005 data.6. Central Statistical Oce (GUS).


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exibility, in terms of both mobility

and professional skills, to adapt tochanging labor market conditions,face considerable discriminationfrom potential employers, and as aresult continue to rely on welfaresupport.

Polands entrance into the Europe-an Union in May 2004 brought new

opportunities for resolving the pro-blems on the Polish labor marketand improving the living standardsof the population. The structuralfunding that was made availablecontributed to raising living stan-dards not only in very tangibleways (ex. by improving and expan-

ding communication, technologyand administrative infrastructure),but also by investing in researchand development of new systemicmodels and approaches to moreeectively counteract social pro-blems. A portion of the structural

funds was disbursed through the

EQUAL Initiative program, whichenabled cross-sectoral partnershipsto explore new ways of supportingthe most vulnerable social groupson the labor market through rese-arch, information exchanges, andstudy visits between EU memberstates. In this process, the social

economy was identied as an in-novative and practical mechanismto counteract the problem ofunemployment, foster local socialand economic development, andstrengthen civil society.

The social economy includes institu-tions that devise creative approaches

to maintain nancial self-suciencywhile fullling a clearly denedsocial mission. The social economysector is a stable economic forcein local communities and facilitatessocial cohesion by oering employ-ment to the most vulnerable social

groups, promoting collaboration be-tween people and institutions, andproviding needed goods or servicesat a high quality and low cost. Thesocial economy can also build socialcapital, a necessary ingredient for a

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Today, Poland is in the EuropeanUnion and has the nancial means[to help the socially excluded]. To-ward this end, cooperation betweenlocal governments, enterprises andnon-government organizations sho-uld form throughout PolandSuchprojects help to build civil society.

This is why we should develop thesocial economy. Not as a marketmodel for the country, but becausewe understand the fact that theopen market does not solve all ofsocietys problems.

Tadeusz Mazowiecki, the rst Pri-me Minister in democratic Poland.


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strong civil society, which studieshave shown is weak in Poland7.

Since the beginning of the EQUAL

Initiative projects in 2005, concretesteps have been taken to developthe social economy in Poland by:

Disseminating information aboutthe social economy to the generalpublic and decision-makers;

Advising and oering nancialsupport to emerging social economyinstitutions;

Lobbying the government to usethe social economy as a tool foraddressing social challenges such asunemployment, economic develop-

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The Foundation BREAD OF LIFE was founded in 2003 in the village ofZochcin in Southern Poland by Sister Magorzata Chmielewska, a powerfulexample of a social entrepreneur. The foundations goal is to support theunemployed and homeless and to promote local economic development.The Foundation runs carpentry, sewing and food processing workshops.The products including furniture, dresses, bed linen, tablecloths, jam are sold in shops throughout Poland as well as through the Internet. Thefoundation also works to benet the community by, for example, providingeducational scholarships to youth from the poorest families to this day

over 500 children have received scholarships.Source: www.chlebzycia.org.pl

ment, and strengthening civil society.

But Polands social economy sectorhas yet to develop its potential: it

makes up 3.9% of the labor marketin Poland, compared to 8.3% inFrance, 9% in Ireland, and 7.5% inFinland8.

8. CIREC Report, 2005.

7. For example: Czapiski, J. and Panek, T. (eds.)(2007) Diagnoza Spoeczna:Warunki i jako ycia Polakw.Available at: http://www.diagnoza.com/.


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9. A Klon/Jawor Association study:Kondycja sektora organizacji pozarzdowychw Polsce 2006.

Social Economy

Institutions in Poland

Prior to the Second World War, thesocial economy in Poland comprisedprimarily cooperatives and mutual in-surance companies. During the com-munist period, these institutions wereexploited for propaganda purposes

and, as a result, now arouse negativeassociations for some Poles9.

Aer the fall of communism, the socialeconomy sector has evolved to includea variety of institutions, ranging fromtime banks (a unique institution thatfunctions on the basis of exchangebetween members, where the value

of services or goods is measured inunits of time rather than money, mak-ing it an eective support mechanismfor low-income people), to social

enterprises (private sector companies,whose business it is to provide socialbenets). Contemporary social econo-my institutions in Poland are involvedin a wide range of activities, address

dierent social problems, and oensupport specically targeted socialgroups. All of them are characterizedby the dual objective of maintainingnancial independence and fullling asocial mission.

The main types of social economy

institutions currently functioning inPoland include:

Non-government organizations(NGOs): 17% of a total of 63,000NGOs (including foundations andassociations) run an income-generat-ing business activity, most frequentlyby engaging in publishing, organizing

social/cultural events, and trainingand education activities10. They em-ploy over 120,000 paid personneland are considered to have the great-est potential for expanding the socialeconomy sector in Poland.

Cooperatives: an estimated 12,000of these institutions currently functionin Poland in a variety of domains rang-ing from housing (5,000) and agricul-ture (3,600) to banking (800).

Social cooperatives: over 140 havebeen founded since the 2006 Act on

Slogans used by the CommunistParty to promote the ideals ofsocialism can sound ironically simi-lar to the ideas associated with thesocial economy:

All for you; You for all!

The Polish worker is the creator

of progress!

10. Ibid.


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Association Disabled Persons for the Environment EKON


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Social Cooperatives was adopted.They take on the form of workercooperatives and support the labormarket and social reintegration oftheir members, above all.

Mutual Organizations: popularbefore World War II in Poland, they

nearly disappeared during the com-munist period. Mutual organizationsare now re-emerging primarily aslending and savings institutions, ofwhich there are around 900, butalso as insurance companies, whichare fewer in number but make a sig-nicant economic contribution (with

a turnover of nearly 50 million Eurosin 200511).

KEY CHARACTERISTICS OF SOCIAL ENTERPRISESThe EMES Network, a group of leading thinkers in the eld of the social economy, developed a broadly accepted de-nition of the ideal institutional type, the social enterprise. They identied its distinguishing characteristics in two maindimensions of activity:

The economic dimension: Take an economic risk to start and maintain a

business activity. Are nancially stable and autonomous on the

market. Employ paid sta. Are independent from public administration. Provide services and/or produce goods.

The social dimension: Explicitly dene their social mission. Are grassroots-based.

Make decisions democratically and have a minimally hierar-chical management structure. Involve a range of stakeholders from their surrounding envi-

ronment in their activity. Limit distribution of prots among stakeholders and lter it

back into the mission-related activity.Source: The EMES Network, www.emes.net

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11. Ibid.


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Two other types of institutionalforms can play a signicant role insupporting the development of thesocial economy sector. They can beestablished by NGOs, welfare cent-

ers and local government institutionsand oer transitional employmentprograms for the most marginalizedsocial groups. In some cases, theseinstitutions are able to develop their

economic activity to such a degreeas to be considered social economyinstitutions:

THE ASSOCIATION DISABLED PERSONS FOR THEENVIRONMENT EKON was established in 2003 with the dualobjective of: Creating employment opportunities for the physically andmentally disabled; Promoting ecologically-friendly living by collecting andsegregating recyclable waste.

The Association partnered with private sector rms and LocalEmployment Oces to recruit and train their employees to

collect and sort recyclable waste. Since 2004, the impact ofEKONs activity has been profound: The association hires 600 people. 60,000 ats in Warsaw benet from EKON services. EKON

also has 16 local branches in four other voivodships. Information about the benets of recycling is disseminated among EKON clients who learn about ecologically-

friendly living.

Source: www.ekon.org.pl

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THE HOTEL AT MR. COGITOS, was founded in 2003in Cracow with the goal of employing patients sueringfrom psychological illness. The Hotel employees completetraining as assistants in the kitchen, in hotel reception,cleaning services, catering services, and in computerliteracy. The Hotels prot is used to benet the employeesthrough, among other things, rehabilitation programs, anEmployment Activation Unit (ZAZ), purchase of medicines,and additional training programs.The impact of working in the Hotel is best described in thewords of one employee: Since I have been hired I havegained respect at home. I had become a scruy grumblingwoman aer two years of being sick. Here, I regained agood gure; I am back on my feet again.Source: www.pcogito.pl

Social Integration Centers (CIS):Over 50 CIS have been establishedsince they were introduced by the2003 Act on Social Employment. CISprovide vocational training programs

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and employment for people fromsocially marginalized groups (espe-cially the long-term unemployed,the homeless, formerly incarceratedindividuals, and refugees).

Employment Activation Units(ZAZ): around 40 ZAZ oer socialand employment reintegration pro-grams specically to the physicallyand mentally disabled.


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The Social Economy in

Polish law

Legislative recognition of the socialeconomy sector legitimates its acti-vities and helps to promote the ideaamong a broad audience of potentialpartners and supporters, ranging fromthe general public to specic interest

groups such as private sector institu-tions. A collaborative eort betweenNGOs and the Polish government,with the support of international insti-tutions including the European Union,has laid the legal foundation for thePolish social economy sector. Towardthis end, old laws were reformed (ex.the Act on Social Services (2004) and

the Act on the Promotion of Employ-ment and Labor Market Institutions(2005)), and new laws were created.The most recently introduced legisla-tion specically focused on the socialeconomy includes:

The Act on Social Benets Activi-ty and Volunteerism (24 April 2003)introduced four changes specicallyoriented toward the third sector,but which ultimately supported the

development of the social economyas well. The act:

1) allowed NGOs to engage in inco-me-generating activity in order tocover the costs of selected servicesor goods production;

2) created the possibility for tax-pay-

ers to designate 1% of their incometax to a chosen NGO with the statusof a Social Benet Organization;

3) established the Public BenetWork Council, a permanent opi-nionating and advisory committeeon third sector institutions to theMinistry of Labor and Social Policy;

4) institutionalized volunteerism bycreating incentives for those whodonate their time to social causes.

The Act on Social Employment (13June 2003) created two new types ofinstitutions:

1) The Social Integration Club (KIS) is

organized by welfare centers, NGOsor local government and engagescommunity members in activitiesaiming to foster a sense of initiative,responsibility and civic engagement.KIS can take the form of supportcircles or interest groups and can

Regulations and funding will notcreate the social economy; we needgrass-roots activity to do that, butI believe that legislative acts canmotivate people to take on certaininitiatives.

Cezary Miejewski, advisor in theMinistry of Regional Development

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engage community members in local

development projects.2) The Social Integration Center (CIS) isestablished by welfare centers, NGOsor local government as an independentinstitution that oers work-integrationprograms consisting of psychologicalsupport and vocational training (inskills such as carpentry, steel-works,

sewing) for people from the most vul-nerable social groups (the homeless,unemployed, formerly incarcerated in-dividuals, people with substance abuseproblems, refugees, and the mentallyand physically disabled). Earning asmall income from the work that CISbeneciaries complete is a key element

in the integration process. CIS can oergoods and services on the open marketbut has extensive nancial support ofpublic administration.

Although KIS are not a social econo-my institution and few CIS manage togenerate signicant prot from their

activities, both institutions foster

entrepreneurial attitudes and socialcohesion which is the basis for thedevelopment of the social economysector.

The Act on Social Cooperatives(27 April 2006) was inspired by Ita-lian Type-B social cooperatives anddened Polish social cooperatives

as enterprises established by peoplefrom especially vulnerable socialgroups (the homeless, long-termunemployed, formerly incarceratedindividuals, people with substanceabuse, refugees, and the mentallyand physically disabled). Their prima-ry objective must be to support the

social and economic re-integrationof their members. Experiences fromthe rst social cooperatives haveprompted a call to reform the actby easing membership requirementsand by expanding the available nan-cial and institutional support in order

to facilitate their sustainability on the

open market. An amendment of theAct is currently being discussed inParliament.

The newest legislation proposed inPoland is an act on social enterpri-ses, which it is currently being discus-sed among NGOs, social leaders andvarious government actors. Several

other countries, including Italy andFinland, have already legally denedthe social enterprise.

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THE SOCIAL INTEGRATION CENTER IN PITKOWO was createdin 2006 as a branch of the larger CIS in the neighboring city ofPozna. Pitkowo is a residential town in the Eastern region ofPoland, inhabited predominantly by low-income people who oendo not have the resources to make timely rent payments. The localresidential authorities requested that the CIS in Pozna help themreclaim unpaid rent of 5 million PLN by helping the residentsto earn a stable income. The Pozna CIS created a local branch inPitkowo which oers:

Courses and workshops to develop social and vocational skills; Advising and employment mediation services;

Psychological support.

The CIS in Pitkowo has since become independent of its mother institution in Pozna and continues to make atangible impact on the community in Pitkowo by:

Employing 7 people and oering support services to 20 beneciaries;

Fostering a network of cooperation between local institutions, including NGOs, the welfare center and the localgovernment;

In 2007, 5 beneciaries of the gardening workshop founded their own social cooperative.

Source: Atlas Dobrych Praktyk, FISE, 2007.

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Social Integration Center in Pitkowo


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The Social Economy and

Local Development inPoland

The social economy is a powerfulsource of creative and practical so-lutions that can have an impact notonly on the economic, but also thesocial development of people and

their communities. It engages peoplein local initiatives, promotes an entre-preneurial spirit, develops networksof cooperation between institutionsfrom dierent sectors, and providesstable employment.

Moreover, the social economy is com-petent in many elds that traditional-

ly belonged to the welfare state, buthas the additional advantage of beinglocally embedded and thus adaptableto changing local needs. Althoughthe existing welfare state system hasproved ineective in limiting socialexclusion and helping those with

diculties in re-entering an active

social and economic life, much of thePolish population remains convincedthat the state should provide employ-ment to anyone who wants it12. Withtime, social economy institutions canourish and make a lasting contribu-tion in the following areas, many ofwhich were traditionally a domain ofwelfare institutions activity:

Labor market integration: Socialeconomy institutions can supportthe social and labor market integra-tion of people who nd themselvesin a dicult economic situation, suchas young people, people over 50years of age, and those transitioning

to new employment. The social eco-nomy can support such social groupsin adjusting to changing labor marketconditions through training programs

that develop new and relevant skills.

Social economy institutions can alsobe established for the unique purpo-se of employing people who have apermanently delicate situation on thelabor market, such as the physicallyand mentally disabled. People fromsuch social groups require long-term,oen individualized, assistance pro-grams encompassing not only voca-tional training but also psychologicalsupport. Social economy institutionscompetitive advantage is in fact theirability to oer consistent and specia-lized support to the most vulnerablesocial groups.

Services provision: Institutions in

the social economy sector can thriveby selling a wide range of servicesfocused on a specic target group(ex. services that complement corehospital sta, employment counse-ling, or vocational training), or thatsatisfy a general public need (ex. nur-

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series, care services for the elderly, orshelters for the homeless). Becauseof their local focus, small to mediumsize, and social mission, social econo-

my institutions can provide such spe-cialized services at a high quality anda low cost and still thrive on the openmarket. The social enterprise sector

can also be successful in oering pu-blic services such as urban greening,maintenance, and transportation.Some social economy institutions

THE SOCIAL READJUSTMENT CENTER ECO SCHOOL OF LIFE wasestablished in 1989 in the Northern town of Wandzin to support the socialreintegration of people with drug abuse problems, infected with HIV/AIDSand the homeless through work, training programs, therapy, and treatment.To fulll this mission, the organization:

Runs a healthcare centre that oers addiction treatment, care andhospitalization for people with drug abuse problems.

Engages its beneciaries in programs aiming to protect rare animal andplant species.

Develops its beneciaries knowledge and skills in food processing, mushroom and fruit drying, gardening, fruitfarming, animal breeding, handicra, renovation and construction work, and carpentry.

Runs a post-rehabilitation program that encompasses vocational training, computer courses, basic social skillsdevelopment, and psychological classes to supplement therapy programs.

Oers pregnant women and women with children, who are infected with HIV or are suering from AIDS, withsupport in childcare and reintegration through employment.

The Center has received numerous awards for its work, provides consistent and holistic support to highlyvulnerable social groups, and makes a signicant contribution to environmental protection eorts.

Source: www.ekosz.republika.pl

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Social Readjustment Center ECO School of Life


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Opportunity and Support Social Cooperative


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(most commonly cooperatives or

NGOs) compete outright with otherprivate rms in providing catering,hotel and tourism services, but simul-taneously employ people from themost vulnerable social groups.

Goods production: Social econo-

my institutions can engage in a broadrange of goods production; they canproduce goods from start to nish orprovide specialized parts for largerproducts prepared by other rms.Since most social economy institu-

tions engaging in goods production

employ people from the most vul-nerable social groups on the labormarket, they tend to ourish in theproduction of labor-intensive, spe-cialized, hand-made products suchas carpentry, sewing, and furniture-

The OPPORTUNITY AND SUPPORT SOCIAL COOPERATIVE wascreated in 2005 to confront one of the largest problems of the Polishlabor market: limited professional activity of people over 50 years of age(only 1 in 4 persons of this age is employed in Poland). The cooperativecollaborated with a local hospital in the Southern city of Katowice to runa training program for 11 unemployed women over 50 years of age whowould be hired as medical orderlies. The responsibilities of the womenwho completed the training inc lude caring for patients hygiene, helpingpatients with daily tasks, supporting the nursing sta (ex. taking patients

blood pressure), and transporting patients and materials for medical exams.

Thanks to the social cooperative: The cooperative members earn an income and feel socially productive. The nurses in the local hospital have much needed support. The cooperative has developed a support program for patients suering from Parkinsons disease.

Source: Atlas Dobrych Praktyk, FISE, 2007, www.szansaiwsparcie.free.ngo.pl

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In 2002 a group of 120 local leaders and interested residents in theSouthern municipality of Batw registered the ASSOCIATION FOR THEDEVELOPMENT OF BATW BAT. The residents faced many problemsaer the fall of communism:

large, state-owned farms were broken up aer 1989, but low soil qualitylimited the development of agriculture;

a 30% unemployment rate aer the collapse of the OstrowiecMetallurgical Plant le 13,000 people without work;

a lack of basic infrastructure such as sewage systems and water supply

networks, as well as social infrastructure such as culture centers.The Associations mission is to revive Batws economy, reduce unemployment and improve living conditionsby developing agro-tourism and local cras. It organizes social and cultural events, such as raing trips alongthe Kamienna River, a local Jurassic Park that promotes the traces of dinosaurs that were found in Batw, a skislope, and a horse-riding school.

The work of the Association has had a strong positive impact:

reduced the unemployment rate in Batw to a minimum,

attracts over 150 000 tourists yearly,

actively involves the residents in social and economic activity that supports their sense of local pride andimproves their economic situation,

The Associations impact has also spread beyond the Batw Region through the Krzemienny Krg PartnershipFoundation, which supports the development of 9 neighbouring municipalities.

Source: Atlas Dobrych Praktyk, FISE, 2007, www.baltow.info

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Association for the Development of Batw Bat


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making. Many social economy insti-

tutions also work in the productionof goods that reect the particularcharacter or asset of the local com-munity, such as local food specialtiesand souvenirs.

Community development: Thesocial economy can also engage inactivities that foster social cohesion

and a sense of community by buil-ding on a community that alreadyexists (ex. a village food cooperativeor a local historical/cultural society),or creating communities where therewere none before (ex. among consu-mers with common interests, such asenvironmental protection, or needs,

like organic produce). Social economyinstitutions can thus protect the na-tural environment (ex. parks, ecologi-cally-friendly living, and biodiversity),or uphold and strengthen a commonheritage or local culture (ex. theaters,museums and libraries). Such social

enterprises can sustain themselves

on the market by simultaneouslyencouraging and capitalizing upon asense of community.

The Challenges Facing theSocial Economy in Poland

The fruits of the eorts to developthe social economy can be seen in theincreasing number of social economyinstitutions, a changing legal environ-ment, and the growing optimism andenthusiasm about the social economyamong the public. The social econo-my has been recognized as a sourceof opportunities for:

individuals to gain employment anda stable income,

institutions to gain inspiration fortheir work and maintain nancialindependence for their activities,

communities to strengthen social

ties and activate community mem-bers,

the state, which identies socialeconomy institutions as valuablepartners in decreasing unemploy-ment, strengthening civil society, andmodernizing the existing ineectivewelfare system.

Yet, more work needs to be done todevelop the social economy in Po-land. The key challenges facing thissector can also be understood as themain goals for its future:

Modernizing the cooperativesector: Cooperatives in Poland aresometimes negatively associatedwith the communist period, and thesector comprises institutions thatdo not have a clear social agenda:in a recent survey, only 10% ofcooperatives cited improvement oftheir community or society as their

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objective13. The cooperative sectormust be better understood by thePolish public and should evolve

to include larger cooperatives thatprovide goods and services to thewider public. Moreover, more socialcooperatives should be establishedto provide employment for the mostvulnerable social groups. To this end

the Act on Social Cooperatives sho-uld be amended to relax the mem-bership requirements, and to provideimproved start-up funding schemesand institutional support for newsocial cooperatives.

The SERVICETRADEPRODUCTION SOCIAL COOPERATIVE in theSoutheastern town of Byczyna was established in 2005 through a jointeort between the local government, the social services center and theSocial Integration Center-CIS. The goal of the social cooperative was to:

help the long-term unemployed, people with substance abuse and peoplewanting to leave the agriculture sector become active on the local labormarket;

reduce the number of people relying on welfare support;

promote Byczyna as an attractive place for tourism.

The cooperatives most recent project fullls all of these goals: the cooperative oers training in highlyspecialized construction skills to people who are long-term unemployed or exiting the agricultural sector. Thosewho complete the training will be prepared to work on the construction site of what will become Byczynas maintourist attraction: a village settlement from the Middle Ages, which will hold a 600-person audience and becomethe location of the annual Medieval Festival in Byczyna.

Source: Atlas Dobrych Praktyk, FISE, 2007, www.spoldzielnia.byczyna.pl.

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Service-Trade-Production Social Cooperative


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Economizing the NGO sector:

Based on a recent survey, amongsocial economy institutions, NGOsare the least likely to take on therisk of starting a business activity14.The widely held belief that economicactivity is incompatible with socialmission further inhibits economic de-velopment of the NGO sector. On theother hand, NGOs face tremendous

competition over limited fundingopportunities and the economic we-ight of the sector remains small: in2005, 50% of NGOs in Poland pro-cessed less than 10,000PLN; only 1in 5 NGOs employ paid personnel;and only 6.9% of those that run anincome-generating activity earned

at least 20% of their total nancialturnover. An economically powerfulNGO sector in Poland can become asource of stable employment on the

labour market and a stronger partner

for the public sector in implementingeective social policy. In order tobecome stronger economically, ho-wever, there should be a concertedeort to promote entrepreneurialbehaviour among NGO leaders andNGOs should capitalize on the possi-bility to engage in income-generatingactivities.

More social enterprises: New insti-tutional forms in the social economy,such as Social Integration Centres-CISand Employment Activation Units-ZAZ, are still few and far between.More should be established andthey should function as an integra-ted network rather than as isolatedinstitutions in order to strengthentheir position on the labour marketin relation to public administration.By working as an integrated network,they will also increase their capacityto make a meaningful impact on their

targeted social groups. Moreover,

there should be productive debate tonalize the anticipated act on socialenterprises. Legally dening a socialenterprise will undoubtedly give newmomentum to the growth of the so-cial economy sector and help broadlypromote the idea of entrepreneurialactivity.

Capitalizing on the social economyfor local development: The nationalgovernment has already distinguishedthe social economy as a priority for itssupport in the National DevelopmentStrategy for the years 2007-2013.However, the social economy shouldbe included in long-term developmentstrategies, with reference to the infor-mation and experience gained throughthe EQUAL Initiative projects. In con-trast, local governments oen do notrecognize the role that the sector canplay in developing democracy, civil so-ciety and local economic growth. The14. Ibid.

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POLISH SOCIAL ECONOMY MEETINGS (OSES)

Annual OSES conferences are organized for representatives of social economy institutions, academic experts, strategicpartner institutions from other sectors, and decision-makers. The several-day event oers participants the opportunityto network, reect on the current condition of the sector, and consider its future perspectives. Special events, such as asocial economy market, are also organized to engage the general public.

As a precursor to the OSES meetings, the Permanent Social Economy Conference (SKES) organized a meeting for Eu-ropean-wide practitioners, academics and policy-makers in 2004 in Krakow. The rst OSES meeting was held in 2006also in Krakow and made a powerful statement about the dynamic potential of the developing social economy sector.The second meeting took place in Warsaw in 2007 and focused on the role of the social economy as an instrument inregional and local socio-economic development with particular emphasis on the public-private partnership.

The 2008 meeting is scheduled to take place in late June in the famous sea-port city of Gdask and will make signicantreference to the legacy of the Solidarity movement and its relationship to the current eorts to develop the socialeconomy.

The OSES meetings are important not only because they provide a space for social economy stakeholders to meet anddiscuss, but because they portray the image of a cohesive, integrated social economy sector to the broader public.

social economy should be promoted

as a tool for community development,both economic and social, and localdecision-makers should incorporatethe social economy in local develop-ment strategies a good example

of mobilizing regional leaders across

sectors to capitalize on the social eco-nomy as a mechanism of local deve-lopment is the 2008 Social EconomyPact in the Maopolska region in theSouth of Poland.

Better use of dierent nancing

mechanisms: The social economyshould capitalize on a variety ofincome sources. Funding mechani-sms such as the European Unionstructural funds are important in

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developing institutional capacity:

between 2007-2013, around 8million Euros will be disbursed byregional governments in Polandeach year through the Human Capi-tal Operational Program to supportthe social economy sector. ThePolish government can also oera range of incentives to facilitateactivity in the social economy, such

as tax deductions, employment sub-sidies, and start-up capital schemes.Introducing social criteria in publicprocurement policies would alsoencourage the development ofsocial economy institutions in thedomain of service provision. Theseincome sources, however, should

not replace prot-generating activi-ties internal to social economy insti-tutions, but serve to stimulate themand help maximize their capacity toindependently sustain themselveson the open market.

Enrooting the social economy in

society: Although the social economyhas a long history in Poland, it is oenperceived as a foreign concept. More-over, studies have shown that there isa remarkably low level of social capitalamong Poles, which makes developingthe social economy simultaneously achallenge (because it is built on a foun-dation of strong social networks) and

a necessity (because it fosters a spiritof partnership and civic engagement).Thus, decision-makers and the public(particularly as consumers) should beeducated about the benets of thesocial economy sector. Awarenessraising campaigns should also be or-ganized among potential beneciaries

of social economy initiatives, who areoen weary of taking on the risk thatenterprising activity involves. In orderto promote the social economy sec-tor, platforms such as the PermanentSocial Economy Conference (SKES:www.skes.pl) should be developed,

which will strengthen lobbying eorts

and promote a unied image of thesector. SKES has already presentedgovernment representatives with re-commendations for the developmentof the social economy in Poland and isawaiting a response.


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For more information about the social economy sector in Poland and the key institutions working to develop it,we invite you to browse the following websites:www.ekonomiaspoleczna.pl

www.skes.plwww.bezrobocie.org.pl

For more information, we invite you to contact:The Foundation for Social and Economic Initiatives

ul. Polna 24/7, 00-630 Warsaw, PolandT +48 22 8750768-69F +48 22 8257076e-mail: [email protected]

Warsaw, June 2008Publisher: Foundation for Social and Economic InitiativesPolna street 24/7, 00-630 Warsawwww.se.org.pl

Author: Katarzyna KubinGraphics & Typesetting: rzeczyobrazkowe.plPhotographs contributed by Mikoaj Grynberg, Tomasz lzak, Zorka Projekt

ISBN: 83-85928-78-2


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This pamphlet was published as part of the project PROMES Promotion of Social Economy

realized with funding from the European Social Fund EQUAL Initiative

Documents

Social Economy Poland