1. Strengthening Public Policy Supports for the Social Economy in Canada
Association for Non-profit and Social economy research (ANSER)
Carleton university, May
Crystal Tremblay
University of Victoria

2. Presentation agenda Introduction
Defining the Social Economy Internationally
Components of the Social Economy
Public Policy supporting the Social Economy
Conclusion

3. Introduction
Global movement of Social Economy as an alternative strategy for sustainable development
Civil society spearheading this movement
Local, regional, national and international networks growing globally
Providing evidence to government that SE can tackle poverty, social exclusion, ecological justice and equality.
“construction of a radical alternative that would do away with the capitalist system and patriarchal domination’….and work towards ‘a society that meets social needs and respects nature’s rights as well as supporting democratic participation in a context of full political freedom”.
- World Social Forum Declaration 2009

4. Defining the Social Economy Internationally
Social Economy (EU, Canada)
Solidarity Economy (South America)
Associative Movements (Senegal, Turkey)
Civil Society (South Africa)
CED (Australia, NZ, USA)
Sufficiency Economy (Thailand)

5. International Networks
Networks around the world are strengthening the SE
Social Economy Europe (SEE)
Economia Solidaria Brazil, Peru, Bolivia
Inter-Continental Network for the Social and Solidarity Economy (RIPESS)
Canadian Community Economic Development Network (CCEDNet)
North American Network for the Social Economy (NANSE)
International Centre of Research and Information on the Public, Social and Cooperative Society (CIRIEC)
Research is being undertaken to strengthen the Social Economy in Canada through the Social Economy Research hub of Canada and the National Social Economy Research Program, developed by CCEDNet and the Chantier de L’economie Sociale Quebec - with six regional centres involving practitioners and universities. 5

6. Defining the Social Economy in Canada
“The Social Economy consists of association-based economic initiatives founded on values of: Service to members of community rather than generating profits; Autonomous management (not government or market controlled); Democratic decision-making; Primacy of persons and work over capital; Based on principles of participation, empowerment…” - CCEDNett National Policy Council, Social Economy Roundtable Consultation Briefing Notes, 2005
“…Social economy enterprises are a component of the social economy that are run like businesses, producing goods and services for the market economy, but manage their operations and redirect their surpluses in pursuit of social and environmental goals”.- Western Economic Diversification Canada
Community Economic Development
“Action by people locally to create economic opportunities and enhance the social and environmental conditions of their communities, particularly with those most marginalized, on a sustainable and inclusive basis” CCEDNet

7. Components of the Social Economy
Cooperatives
Operate in all sectors, employ over 100 M people, more than 800 M members
(International Cooperative Alliance)
Mutual associations
Report of 96 countries revealed that 49,134 credit unions serve an estimated 177 M members in those countries (World Council of Credit Unions, 2007).
Non-profit organizations
Enormous growth in number and variety in recent years, culminating in what Salamon et al. (2003) are calling a “global associational revolution” - a massive upsurge of organized private, voluntary activity in virtually every region of the world.
Enable effective social change, “stimulate citizen activism; awaken gender, environmental, and ethnic consciousness; and prompt heightened interest in human rights”.
Including any “private or public sector enterprise that posses the characteristics of the cooperative model” (Ninacs, 2002).

8. Scope and significance of the Social Economy
Global
In a study of 40 countries, this sector contributes to $1.9 trillion in operating expenditures, 48.4 million full-time jobs, and serves 4.6% of the economically active population in these countries (Salamon, 2007) .
Canada
In Quebec, the Social Economy (including credit unions, day care centres and home care cooperatives) amounts to 7151 enterprises, 124,300 jobs, and $17.2 billion in annual sales of goods and services (Downing, 2004). According to a 2004 study, there are 9,271 co-ops employing over 160,000 Canadians (Cooperatives Secretariat). UK
In the UK, there is an estimated civil society organizations, assets of £210 billion and total income of £116 billion (Haugh, 2009).

9. Public Policy Supporting the Social Economy
Four main categories of Public Policies
Territorial
Tools for development
Sector
Those in favor of target populations
Research building on Social Economy and Community Economic Development in Canada: Next Steps for Public Policy; (Mandell, Neamtan and Downing, September 2005).
Territorial policies, can be defined as “a process by which communities initiate and implement their own solutions to economic problems to build long-term community capacity and foster the integration of economic, social and environmental objectives (Neamtan & Downing, 2005, p.16). Social Economy Enterprises (SEEs) need to have access to suitable tools for development including adequate markets, research and development and tools to help ensure efficient management practices. Sectoral policies often respond to needs that neither the market nor government can satisfy. Polices that support the emergence of economic sectors (such the environment, housing, new technologies, communications, food services etc.) are important tools for strengthening the Social Economy. Policies in favour of target populations contribute to addressing access, services and employment to marginalized groups. These Social Economy policies respond directly to integrating citizens previously considered unproductive into the workforce.

10. Co-production/construction of policy
Participation by stakeholders from civil society and the market in the implementation of public policy
Co-construction
Participation by those very stakeholders in the design of public policy
“democratization and enhancement of public policy requires participation by collective and individual stakeholders from the market and civil society” (Vaillancourt, 2008)
Highlights cases globally of successful co-production/creation of policy

11. Territorial policies Some International examples:
“Territorial policies provide a geographic community with support for networking, strategic planning, and collective projects”…”requires the engagements of a variety of stakeholders and sectors as well as multi-year funding that recognizes the long-term stages of development”.
Europe
Spain: Community Strategic Guidelines (CSG)
UK: Community Interest Company (CIC) - a model of social enterprise
Italy: Social Co-operative
Belgium: Social Purpose Company
France: Collective Interest Co-operative Society
The objectives of the CSG are: to reinforce the strategic dimension of cohesion policy by ensuring that community priorities are better integrated in national and regional development programs, and to ensure greater ownership of cohesion policy on the ground (bottom-up approach) by reinforcing the dialogue between Commission, member states and the regions and by promoting a more decentralized sharing of responsibilities (Noferini & Consejero, 2007).
The CIC, the UK model of Social Enterprise, was introduced in 2005 with now over 2097 registered (Carter & Man, 2008). A CIC is a limited liability company with the specific aim of providing benefit to a community, which combines the pursuit of a social purpose with commercial activities.
Forum Brasileiro de la Economia Solidaria (Brazilian Forum on Solidarity Economy) in The creation of this form coincided with the National Secretariat on Solidarity Economy, a branch of the Ministry of Labour and Employment of the Federal Government. Since this collaboration, the Forum and the Secretariat have joined forces in advancing the SE. The establishment of a new legal framework governing the relationship between the Third-Sector and the State has introduced new novelties such as the parceria (partnership) and public-interest civil society organizations (Sugiyama, 2008).
Andrews (2004) argues that sustainable rural development can be an effective means to combat poverty in Brazil and points to a recent study in Santa Catarina, a small state in the South, that was able, within 10 years, to reduce the total number of people living in poverty to 46 percent and the total number of individuals living at indigence levels to 64 percent. These results stem from the establishment of the federal government council’s National Plan for Sustainable Rural Development (PNDRS). In this regard “the socioeconomic growth of family agriculture is to be strengthened, with support for the commercialization and industrial transformation [of agricultural products], expanding and improving the access to stable credit policies, technical assistance, seeking a new model of sustainable rural development”(Coligação ‘Lula Presidente’, 2001: 9 cited in Andrews, 2008, p. 482).
In Mexico, the Production Development fund covers activities such as temporary employment programs, social enterprises, and economic development opportunities for women and indigenous regional funds. The social enterprises program includes initiatives to create, and extend such enterprises for producers living in poor rural and areas.
Rural Networking Initiative, supported through the Rural Secretariat of Agriculture and Agri-foods Canada funds three types of rural community projects aimed at building community capacity: learning events, partnerships and networks
One example comes from the city of São Paulo that has implemented the ‘Oportunidade Solidária’, a program seeking to foment work cooperatives, small businesses and other small-scale income-generation activities (Pochmann, 2003: cited in Andrews, 2004).

12. Territorial policies Some International examples: Americas
United States: Low-profit Limited Liability Company (L3C)
Canada: Rural Networking Initiative (rural development)
Brazil: Forum Brasileiro de la Economia Solidaria (2003), São Paulo’s ‘Oportunidade Solidária’ (urban development), National Plan for Sustainable Rural Development (PNDRS)
Mexico: Production Development
Asia/Pacific
Asian Forum for Solidarity Economy (2007)
Australia: Regional Partnerships Program
New Zealand: Community Economic Development Action Research Project (CEDAR)
Thailand: Sufficiency Economy
In Thailand, the Sufficiency Economy, proposed by His Majesty King Bhumipol Adulyadej, is based on principles towards greater participatory democracy, greater equity and more secure environmental sustainability.

13. Tools for Development
Tools that specifically recognize and support the social, environmental and cultural objectives of SE organizations, enable a level playing field on which they can compete with conventional for-profit businesses.
In Thailand, the Sufficiency Economy, proposed by His Majesty King Bhumipol Adulyadej, is based on principles towards greater participatory democracy, greater equity and more secure environmental sustainability.

14. Tools for Development Some international examples - Policy domains
Financial cooperatives
Community-based savings programs
Taxation policies
Social money
Local currency
Training
Regulatory frameworks
Investment funds
Enterprise funds and venture philanthropy
Loan guarantees
Subsidized financing
Micro-credit
Financial cooperatives
Community-based savings programs
Taxation policies
the four main legal forms taken by the SE enjoy some kind of specific tax treatment.
Spain’s Act43/2002 passing its NPO taxation system, Italy’s Act 460/1997 on the ONLUS and Germany’s Social Law Code governing non-profit organizations.
Social money
Local currency
Training
Regulatory frameworks
Investment funds

15. Sectoral Policies Canada EU
Social Economy Eneterprises/organizations have been successful in their capacity to identify “emerging needs, propose innovative solutions and structure or occupy sectors that are not considered sufficiently profitable for private for-profit initiatives” (Neamtan & Downing, 2005)
Canada
particularly prominent in the fields of health, education, and social services
The Cooperative Development Initiative (CDI) is a joint federal government/coop sector partnership program involving 17 regional and sectoral organizations across Canada EU
Some examples include employment policies involving workers cooperatives and integration enterprises, social services policies, agriculture and rural development policies.
Commission launched a project 'Promoting Social Entrepreneurship in Europe' in 2004
Canada, government funding for this sector is particularly prominent in the fields of health, education, and social services
The Cooperative Development Initiative (CDI) is a joint federal government/coop sector partnership program to help people develop co-ops and to research and test innovative ways of using the cooperative model. In partnership with 17 regional and sectoral organizations across Canada, it includes support for new cooperative development in priority areas including: adding value to agriculture; access to health care and home care; economic development in rural, remote or northern communities; development of Aboriginal communities; integration of immigrants into Canadian communities; and community solutions to environmental challenges (Neamtam & Downing, 2005).

16. Sectoral Policies Some international examples - Policy domains
Healthcare
Agriculture
Education
Housing
Fair trade
Ethical consumption
Recycling and waste management
Canada, government funding for this sector is particularly prominent in the fields of health, education, and social services
The Cooperative Development Initiative (CDI) is a joint federal government/coop sector partnership program to help people develop co-ops and to research and test innovative ways of using the cooperative model. In partnership with 17 regional and sectoral organizations across Canada, it includes support for new cooperative development in priority areas including: adding value to agriculture; access to health care and home care; economic development in rural, remote or northern communities; development of Aboriginal communities; integration of immigrants into Canadian communities; and community solutions to environmental challenges (Neamtam & Downing, 2005).

17. Supporting Target Populations
The inclusion of marginalized and disadvantaged populations in the economy is a major priority of Social Economy policies around the world.
Davister et al. (2004) highlight main characteristics of the target groups as; people with a mental, physical or sensory handicap, people with social problems, “hard to place” and/or long term unemployed, young low-qualified people, disadvantaged minorities (of foreign origin e.g), and vulnerable female target groups.
Finland - Social Firms
Mexico - Priority Groups Assistance Fund
Senegal - Economic Interest Groups (EIG)
South Africa - Broad Based Black Economic Empowerment
The European Confederation of Worker Cooperatives, Social Cooperatives, and Social and Participative Enterprises (CECOP) recommends the labour market to support the establishment of cooperatives specialized in the inclusion through work of disadvantaged groups. They recognize the need for a gradual EU regulatory framework in the field of the active integration of people furthest from the job market (CECOP), and a European sectoral social dialogue in the field of social services and working conditions in the EU. Many European countries have made this commitment by supporting the socio-economic integration and professional training of target populations (such as youth, disabled, disadvantaged workers, etc.).

18. Social Procurement
Jadoun (2008) describes Socially Responsible Public Procurement (SRPP) as the promotion of: employment opportunities, decent work, social inclusion and Social Economy, accessibility and design for all, and fair and ethical trade.
Some international examples
UK: National Procurement Strategy, BEST Procurement
France: Plan pour l’Insertion et l’Emploi – PLIE
Germany: Bavarian SME Act
Holland: Act on Tender Procedures for Public Works
USA: Small Business Administration’s Small Disadvantaged Business (SDB)
Canada: Aboriginal Procurement Initiative (Manitoba); Procurement Strategy for Aboriginal Business (Federal)
EU has a number of social procurement examples including the National Procurement Strategy that calls on authorities to: use procurement to help deliver corporate objectives including economic, social and environmental objectives set out in the community plan; encourage existing suppliers to enter a new market or develop new suppliers (e.g. by working with the voluntary or community sector); and develop diverse and competitive sources of supply, including procurement from small firms, ethnic minority businesses, social enterprises and voluntary and community organizations (HRSDC, 2006). BEST Procurement is a major initiative led by Social Enterprise East Midlands (SEEM) in the UK, bringing together a partnership of agencies from the public sector, social enterprise support organizations and experts, and social enterprises themselves. The incubation project, led by Genesis Social Enterprise Centre, invested £160,000 in setting up five social enterprises that have already secured £1.6 million contracts from public sector operating in a range of fields and creating quality inclusive employment.
France’s social consideration in public procurement is recognized as one of the most advanced and structured in the world (Caranata, 2008). Here, procuring entities (such as Lille, Nantes, and Angers) work with public institutions responsible for social inclusion, such as the Maison de l’emploi, which allow coordination and synergies in all the activities that come to compose the Plan pour l’Insertion et l’Emploi – PLIE.
They do however promote Social Enterprise in public procurement by including: 1) the requirement of contracting authorities to split contracts into lots to allow Social Economy Enterprises to bid, and 2) that contract conditions with main contractors include a clause providing for the participation of Social Economy Enterprises as subcontractors (Trybus, 2008a). Additionally, some German states have a general rule to allow Social Enterprise a fair share in public contracts (Bavarian SME Act) or require to specifically ask Social Enterprise to bid for public contracts procedures (Hesse SME Act).
In Italy, social cooperatives are entrusted with the management of janitorial and cleaning services, nursing services and waste management (Caranata, 2008a).
According to the Danish Act on Tender Procedures for Public Works social requirements like employment opportunities and social inclusion should always be integrated in call for tenders as tenderers to recruit a certain percentage of their workforce (normally 5%, in the City of Aarhus in Jutland 10%) for a certain minimum period of time from the five categories of unemployed (category 1 of short term unemployed with good employment prospects to category 5 of long term unemployed with almost no employment perspective. In this system, employees are paid 50 to 75 percent of their salary by the tenderer with the state paying the remainder of the salary, creating an incentive for the tenderer.
In Manitoba, the Aboriginal Procurement Initiative, for example, builds on a sustainable procurement initiative introduced in 2000 as mandated by the Sustainable Development Act to encourage the production and use of environmentally friendly products (Reimer et al., 2009). The policy directs all government departments to increase the participation of Aboriginal businesses in providing goods and services to the Manitoba Government and to develop annual objectives and action plans.

19. Aboriginal Communities and the SE
There are a number of social programs, policies and partnerships developing internationally that specifically target the strengthening of Indigenous communities, promoting local well-being and inclusion.
Some international examples
Australia: Indigenous Economic Development Strategy
New Zealand: Te Puni Kokiri
Canada: Aboriginal Skills and Employment Partnership (ASEP) - Federal level
Alberta: Alberta Indian Investment Corporation (AIIC)
B.C/Alberta: First Nations Economic Partnerships Initiative (FNEPI)
Manitoba: Northern Development Strategy
United States: Administration for Native Americans supports the Social and Economic Development Strategies (SEDS); Native American Community Development Training Program
Mexico: Indigenous Regional Funds
The Federal Government released its Indigenous Economic Development Strategy in 2005, focusing on providing mainstream opportunities to Indigenous entrepreneurs in rural and regional areas. The Strategy focuses on two key areas: work and asset and wealth management. Under the work component, the government promotes the Local Jobs for Local People initiative under which Indigenous communities, employers and service providers work together to identify local employment, business opportunities and training
The Ministry of Maori Development Act 1991 established Te Puni Kokiri, which works to provide policy advice to government and other agencies as well as providing services to assist Mãori achieve their development aims. The Maori Business Facilitation Service is a free business development service for Maori who are interested in starting a business or needing improvements on an existing one
At the national level, the Aboriginal Skills and Employment Partnership (ASEP) program is geared to providing First Nations people with the skills they need to participate in economic opportunities such as northern mining, oil and gas, forestry, and hydro development projects across Canada.
Another important source of support for Aboriginal development is the Alberta Indian Investment Corporation (AIIC), formed in The AIIC is owned by all First Nation communities in the province of Alberta and has become a source of loan and equity financing for First Nation owned businesses.
Manitoba, the Northern Development Strategy builds on initiatives already underway in government to improve the quality of life for Northern and Aboriginal people, with a priority focus on housing, health, transportation, education and training, and economic development (Kostyra, 2006).
Sousa & Hamdon (2008) describe a variety of initiatives in Alberta and British Columbia aimed at increasing members of the First Nations participation in the economy. For example, the First Nations Economic Partnerships Initiative (FNEPI) developed in consultation with First Nations and industry stakeholders is guided by the following principles: supporting the development of effective partnerships between First Nations, industry, government and other stakeholders; “strengthening First Nations economic capacity; and assisting in the development of a viable First Nations private sector” (p.24).
The Indigenous Regional Funds in Mexico provides resources for expanding, improving and consolidating the production infrastructure of indigenous communities using criteria determined by the communities themselves.
Through the Native American Community Development Training Program, courses are offered specifically tailored for the professional needs of the Native American community, development practitioners and others working to serve Indian Country.

20. Conclusion - Policy Outcomes
Some Key Themes
Social Economy is a major economic force, accounting for a significant share of global expenditures and employment.
Widespread recognition that matters concerning social, economic, environmental and cultural well-being are inextricably intertwined/interdependent.
Policy Instruments
Government legislation and regulation advantaging the Social Economy
Access to funding programs, subsidies, tax credits across various sectors
Indigenous Development
Legislation of state requirements and structures to support the SE (Brazil)
Legislation of legal forms for SE organizations (e.g. Mexico, Brazil, UK, Italy)
Political responsibility and structure across government (e.g. UK, Brazil)
Procurement policies advantaging SE organizations (e.g. Italy, France)

21. Thank you The Social Economy Hub of Canada www.socialeconomyhub.ca
Rupert Downing, Canadian Social Economy Hub Co-Director
Annie McKitrick, Manager of the Canadian Social Economy Hub
Members of the Public Policy Facilitating Committee
at the Social Economy Hub
Questions?