Public Policy and the Social Economy

1. Public Policy and the Social Economy Rupert Downing, Canadian Social Economy Hub Co-Director Sarah Amyot, Youth Engagement Projects Coordinator for BC Healthy Communities and YouthCore Crystal Tremblay, fourth year PhD candidate in the Department of Geography at the University of Victoria December 1, 2011

2. Public Policy for the Social Economy: Building a People Centred Economy Canadian Social Economy Research Hub Tele-learning Session, December 1, 2011 Sarah Amyot, MA student University of Victoria

3. Why a people-centred economy? • Because what we are doing now is not working • A changing nature of the state of Canadian welfare and safety net • From a interventionist state to a facilitative one • The Social Economy: A way forward • Values of participation, democracy, and justice

4. The role of public policy • Can support or hinder the development of the social economy • Policy in Canada has tended to favour a limited view of the social economy, that of social economy enterprises • Need for a broader view of the type of policies needed (e.g. tax reform, housing policy and other mechanisms to reduce inequality)

5. Supporting Public Policy Objectives Environmental sustainability • community-based energy • community-based water management • Supporting local food systems • Eco-system-based management and economic development

6. Supporting Public Policy Objectives Poverty reduction, employment creation and combating social exclusion • ‘comparative advantage’ – in reaching hard to reach and by acting as conduits for greater participation • Potential to create jobs where more money stays in local economy • Support for marginalized groups- people with disabilities, new Canadians, and women

7. Our Research • Third of three public policy papers • Literature review, and synthesis of existing research • Key informant interviews for policy profiles of 11 different policy initiatives • Local (including First Nations governments), Provincial, Federal • Consideration of both policy instruments and policy process

8. Policy Instruments for the Social Economy Market Access and Procurement • Procurement policies in Manitoba Access to finance • CEDIF (Nova Scotia), Ontario Social Venture Fund, BC Coast Opportunities Fund, Edmonton Social Enterprise Fund Enterprise Development • Co-operative Development Initiative, BC Coast Opportunities Fund

9. Policy Instruments to Support the Social Economy Green economy • Ontario Green Energy and Economy Act, Manitoba Sustainable Development Act, BC Coast Opportunities Fund Local Development • Manitoba CED Policy Framework and lens Overarching Strategies • Quebec Action Plan for Collective Entrepreneurship, Manitoba CED Policy Framework and lens, Montreal Social Economy Plan

10. Market Access Next Step: Governments at all levels (and other sectors) should build on procurement models that advantage social enterprises by using social value weighting in bid criteria and evaluation, targeted purchasing, set asides for enterprises that provide opportunities to disadvantaged groups, and unbundling contracts to make them more accessible to local social enterprises.

11. Access to Finance Next Steps: A patient capital fund … capitalized by the federal government for cooperatives and social enterprises … for leveraging private capital including tax credits. An RRSP tax credit should be made available for investors … for community and social enterprise. Tax credits should be provided to co-operatives and their members, and social enterprises that invest in the development of their sector. Regulatory reform … to ease barriers facing social enterprises

12. Local Development Next Steps: Renew and expand federal provincial urban development agreements that have contributed to long term community socio-economic development (as in Winnipeg), and increase the share of gas tax revenues to municipalities that commit to implementing sustainable development plans with community partners to reduce poverty and enhance social and environmental conditions.

13. Scaling Up Next Steps: Governments at all levels should be engaged in learning from successful policy frameworks already in place to create cross-government policy to utilize the Social Economy in achieving social, economic and environmental objectives.

14. Policy Process • Need for continuous co-construction • Build a big tent • This can have long lasting impacts • Importance of creating a culture shift • Allow time to build relationships • Concluding thoughts: advances have been made, but Canada lags behind other countries in many respects

15. For more information and to view the complete policy profiles, visit the Canadian Social Economy Hub http://www.socialeconomyhub.ca THANK YOU

16. Public Policy Trends and Instruments Supportingthe Social Economy: International Experiences Social Economy Research Hub of Canada Tele-learning Session, December 1 2011 Crystal Tremblay, PhD Candidate University of Victoria

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

18. 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

19. 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)

20. 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.

21. Defining the Social Economy in Canada • Social Economy • “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

22. 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 53,000 credit unions serve an estimated 188 M members in those countries (World Council of Credit Unions, 2011) • 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).

23. 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 870 000 civil society organizations, assets of £210 billion and total income of £116 billion (Haugh, 2009).

24. 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).

25. Co-production/construction of policy Co-production 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

26. 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

27. 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

28. 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.

29. 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

30. Sectoral Policies Social Economy Enterprises/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

31. Sectoral Policies Some international examples - Policy domains Healthcare Agriculture Education Housing Fair trade Ethical consumption Recycling and waste management

32. 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

33. 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)

34. 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 theSocial and Economic Development Strategies (SEDS); Native American Community Development Training Program Mexico: Indigenous Regional Funds

35. 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)

36. Thank you The Social Economy Hub of Canada www.socialeconomyhub.ca Rupert Downing, Canadian Social Economy Hub Co-Director Sarah Amyot, Youth Engagement Projects Coordinator for BC Healthy Communities and YouthCore Crystal Tremblay, fourth year PhD candidate in the Department of Geography at the University of Victoria