Social Economy - FUAP

OPEN EDUCATIONAL RESOURCE I

SOCIAL ECONOMY

Social Economy

Historical evolution Current field of activity Identification and institutional

recognition Groups included in the SE

concept

Historical Evolution

Unifiying concept for social economy

Popular associations and cooperatives


Middle Ages

Big growth of charities and mutual aid


19th century

Popular associations, mutualities and cooperatives, through

working class


UK FRIENDLY SOCIETIES (1790)

All Europe Mutualities Latin America mutualist

movement


end of 18th century first signs of cooperativism in UK

emancipation of the working classes

Historical Evolution Italy: mutual aid societies, very

numerous in the second third of the nineteenth century

Società Operaia di Torino

Magazzino di Previdenza di Torino (first consumer cooperative)

Historical EvolutionSPAIN

Barcelona association of weavers

Historical EvolutionFRANCE

Origin of the SE as inseparable manifestation of popular associative movements

1830 SE treaty

Current field of activity

SE was relatively important in Europe during the first third of the 20th century


1945-1975 Keynesian model

traditional private capitalist sector & the public sector


last quarter of the 20th century renewed interest in the typical

SE organizations


interest arisen by difficulties in market economies:

- massive long-term unemployment- social exclusion- education & health


main studies SE significant growth in Europe

based on entities dedicated to ‘merit goods’


for example social enterprises, such as cooperatives

207.000 cooperatives

direct employment4,7 million people

108 million partners


health and social protection mutualities

assistance & coverage+120 million people

insurance mutual 24% market share


associations(50% UE citizens)

direct employment8,6 million people

represent GDP 4%

Identification and institutional recognition

Current identification of SE France ’70s (CNLAMCA)


The most recent conceptual definition of the SE ‘Charter principles of the social economy’


‘Charter principles of the social economy’

- primacy of the individual and the social objective over capital;- voluntary and open membership;- democratic control by its members;


‘Charter principles of the social economy’- combination of the interests of user members and/or the general interest;- defense and application of the principles of solidarity and responsibility;- management autonomy and independence from public authorities;


political and legal recognition- FRANCE interministerial delegation (1981)- SPAIN SE law (2011)- European Parliament & CESE

Groups included in the SE concept

systems of national accounts (accounting)

SCN 1993 SEC 95

Groups included in the SE concept Institutional sectors according SEC

1993 & SEC 951) non-financial corporations 2) financial institutions 3) government 4) households 5) non-profit institutions serving households


in national account terms, we can divide the SE entities (*CIRIEC):

1) market or business sub-sector 2) non-market producer sub-sector


“both are organizations of people who conduct an activity with the main objective to meet the needs of people”

1) market or business sub-sector 2) non-market producer sub-sector

Groups included in the SE conceptnon-market producer sub-sector

associations and foundations Production free or at no

significant prices

Groups included in the SE conceptnon-market producer sub-sector

nonprofit organizations in the strict sense

principle of non-profit distribution

Groups included in the SE conceptmarket or business sub-sector

created to meet the needs of its members principle of self-help

production destined for sale benefits can be distributed


COOPERATIVES

self help autonomy of decision democratic organization


MUTUALITIES

health and social protection mutualities

mutual insurance


BUSINESS GROUPS

when a company, a coalition of companies or any other entity, controls a business group


SOCIAL ENTERPRISES

NONPROFIT INSTITUTIONS IN SERVICE TO SE INSTITUTIONS

OPEN EDUCATIONAL RESOURCE I – PART II

SOCIAL ECONOMY

- Legal framework in Spain- Social Economy Law- Types of organizations

SOCIAL ECONOMY

LEGAL FRAMEWORK IN SPAIN Law 5/2011, March 29, on

Social Economy. Without precedent at world level.

Law 31/2015, September 9. Update the original law.

SOCIAL ECONOMY LAW – Social Economy definition

business and economic activities

private field social or economic public

interest principles*

SE LAW – PRINCIPLES Supremacy of persons and social

order on capital. Application of the results based on the

contributed work. Promotion of internal solidarity and

local development. Independence regarding public

authorities.

SE LAW – PRINCIPLES1) Supremacy of persons and social order on capital.

democratic and participatory management

contributions: work more important than capital2) Application of the results based on the contributed work.

SE LAW – PRINCIPLES3) Promotion of internal solidarity and local development.

local development equal opportunities for men and

women4) Independence regarding public authorities.

TYPES OF ORGANIZATIONS – COOPERATIVES:

business organization based on democratic structure and functioning.

TYPES OF ORGANIZATIONS – COOPERATIVES:

CLASSFICATION:- 1st level: minimum three partners- 2nd level: as partners at least two

cooperatives Depending on the ACTIVITY: asociated

work, education, agricultural, sanitary……

Evolution of the number of cooperatives – 3rd quarter 2015

Evolution of the number of workers – 3rd quarter 2015

TYPES OF ORGANIZATIONS – WORKER-OWNED

COMPANIES: most of the capital is owned by the workers

high potential for business creation


COMPANIES:Characteristics:

1) most of the capital workers with indefinite contract2) public limited company (“S.A.”) or a limited liability company (“S.L.”)


COMPANIES:Characteristics:

3) limitation on the number of hours worked4) preference in the transfer of shares

Sectoral distribution of worker-owned companies workers

Geographical distribution of worker-owned companies

TYPES OF ORGANIZATIONS – MUTUALITIES

insurance activities, voluntary nature overlap between the figures of insured

and partner

TYPES OF ORGANIZATIONS – SPECIAL EMPLOYMENT

CENTRES objective promote employment for disabled workers

more than 70% of total workers

TYPES OF ORGANIZATIONS – JOB PLACEMENT

COMPANIES objective facilitate access to employment of disadvantaged groups

Education

Social Economy - FUAP