The Social Economy: Potential and Pitfalls















The Social
Economy:Potential and Pitfalls


Over the past few years, there has been a growing interest in
what has become known as the social economy. Although ambiguously and
variably defined, the social economy may be seen as a new, or newly
defined, arena of economic activity which:






straddles the market, the state and non-market sectors (the
latter includes activities traditionally falling within systems of
care and reciprocity in families and neighbourhoods, for example,
child-care and care of the elderly) ;

serves social as well as economic ends;

operates on the principles of solidarity and sustainability
rather than
profit.The social
economy can be seen in organisational forms (e.g., worker co-operatives
and voluntary organisations) , in areas of public consumption (e.g.,
sports and leisure, child-care, arts and culture) , in the provision of
employment opportunities for unemployed people and in the provision of
services at affordable prices to people living in disadvantaged areas.

Interest in the social economy is reflected in a growing body of
literature both in Ireland and in Europe. In its recent report - Strategy
into the 21st Century - the National Economic and Social Council has also
pointed to the potential of the social economy and proposed the
establishment of a working group to systematically examine this (NESC,
1996) . This proposal will be implemented within the framework of
Partnership 2000. Much of this discussion of the social economy is policy
driven and premised on the potential role of the social economy as an
arena that might provide the basis to counter social exclusion.
More generally, interest in the social economy has grown out of
significant developments in economy and society over the past decade.
These include adverse as well as more positive developments. Principle
amongst the former is the collapse of what is termed Fordism (i.e., the
post war economic development model that was premised on full (male)
employment, mass consumption and the presence of an extensive state
welfare system) and the failure of the neo-liberal response to the crises
which resulted. In the wake of the dismantling of the Fordism the capacity
of both the labour market and the taxation / welfare nexus to function
effectively as mechanisms of distribution and inclusion was diminished.
The consequences were persistently high unemployment, increasing poverty
and a threat to social cohesion as large numbers of people were locked out
of production and consumption. The initial neo-liberal response was to
emphasise the primacy of the market and the residual role of the state in
promoting economic and social well-being. Across Europe, these tendencies
were most clearly seen in economic policy but were also evident in labour
market policy and in welfare policy.
The persistence of the post-Fordist crisis has fuelled the search
for new ways forward and forms the context within which the social economy
is emerging. This is accompanied by an ongoing, and as yet incomplete,
assessment of the relative roles of economic, welfare and labour market
policy in facilitating the emergence of the social economy.
There are also pull-factors or opportunities which are exerting an
influence on the emergence of the social economy. Here, the principle
factor is the potential to develop and exploit new markets deriving from
the emergence of new consumer demands, the rolling back of the state as a
service provider, and the emancipation of women from their traditional
roles within the household, family and community.
The possibility of developing new markets with the explicit
objective of achieving inclusion, combating unemployment and improving the
quality of life in disadvantaged communities is an exciting prospect and
clearly one which demands greater attention. In this context, the
development of the social economy has the potential to promote economic,
social and political well-being. But there are also potential dangers to
be avoided if the social economy is not to end in the development of a
second rate economy in which both the producers and the consumers are
disadvantaged - a consequence which would further threaten social
cohesion. A great deal more work needs to be done in investigating the
potential of the social economy, how it can contribute to social and
economic development and the nature of the policies and resources which
are required to support it.
Both in Integra, and more generally in EMPLOYMENT, a number of
projects are developing actions either directly within the social economy
or in areas related to it. There is scope, therefore, for Integra to
contribute to the ongoing debate and dialogue around this important issue.
In the coming year, WRCsec will
be publishing a paper on the social economy and the projects in the
Integra Working Group on the Social Economy will hold a number of meetings
on the issue. These will make an important input into the current debate
regarding the potential and pitfalls of the social economy as a response
to social exclusion.





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