Social and Solidarity Economy (ESS)

• The text discusses the Social and Solidarity Economy (ESS), its definition, characteristics, and place in the broader economy.

Framing and Specifics of the Sector

• The ESS is a concept that has recently stabilized but has reflections dating back over two centuries.
• The ESS is a movement that has progressively structured itself at the intersection of several currents of thought.
• The ESS is a heterogeneous collection of enterprises with multiple objectives.
• ESS is influenced by contradictions such as financing and the financialization of certain social aspects.
• The ESS represents 10% of the PIB and 14% of salaried jobs which means 2.6 million jobs.

ESS Definitions

• ESS is a polysemous word and its structures vary greatly from savings groups to social services.
• The object of ESS is based on activity recovery, such as cooperatives. Fralib is an example, where workers resumed their brand name after a long strike. -One of the cooperative names is Scopti.
• Another example is an exit from precarity for bike delivery workers in Bordeaux.
• ESS requires a capacity to reconcile opposites, such as combining salaried employment and entrepreneurship.

Conditions for being part of ESS

• Distribution of profits cannot be the structure's objective.
• A democratic governance is required with information and member participation where a worker's vote has the same weight as a HR director's. - Governance should have a system of information and a system for participation
• Management principles should focus on maintaining or developing the company's activity, and reserves cannot be distributed.

Five Main ESS Families

• Groups of historical/statutory actors: associations, cooperative structures, mutuals, and foundations.
• An example is Abbé Pierre
• All four are legally included in the ESS sector.
• The fifth family includes commercial companies, but they must pursue a social utility goal and share ESS principles.
• Social utility requires meeting at least one of three conditions: Support for people in precarious situations (ex: local mission). Participation in combating exclusion (ex: popular education structure). Contribution to sustainable development.
• These entities may receive social utility approval.

The Third Sector

• The third sector sits between the private and public sectors, characterized as non-profit.
• It is defined negatively as neither capitalist nor state-run.
• It does not aim to seek monetary profit to share among its members.
• Companies in the third sector carry out a social object but may have a complementary commercial activity.
• Public or parapublic entities are excluded, such as France Travail, GDF, and RATP.
• ESS is designated as a third sector, with M.Rocard's interventions and creation of the first ministerial delegation for the social economy.
• Characteristics of the third sector include: Promotion of immaterial activities/services to people. Encouraging unpaid activities for increased fulfillment. Social utility through the production of collective goods. Collaboration.
• M.Rocard saw the third sector as a field for societal self-management experimentation.

Place of ESS in the Economy and Jobs

• Key Figures: ESS accounts for 10% of GDP, 10.5% of employment, 14% of private sector employment and creates jobs.
• From 2010 to 2015, private sector employment increased by 15% while ESS employment increased by 26%.
• ESS showed resilience during the Covid crisis and also facilitated the expansion of telework.
• The provision of services to the population is a key area, intervening in masks, hydro-alcoholic gel production.
• The supply chain involves certain cooperatives helping small producers.

Main Sectors and Figures

• 210,000 ESS establishments are leaders in the social sector with 61% of jobs, 57% in sports and leisure, etc.
• Focus on health (11% of jobs), early childhood care (50% of establishments), and EHPAD (31%).
• In 2021, 142,000 employees worked average each month in a integration company thru economic activity
• The AMAP has a link to organic farming that seeks to offer baskets of organic products grown by farmers/people in integration.

Multiplication of Structures

• Coworking spaces, "fab labs" for sharing spaces, machines, skills and co-operatives.
• Activity and employment cooperatives (CAE) exist.
• ESS is the primary employer in small communities, particularly in rural areas like La Creuse or Meusère.
• Enjeux de développement et de croissance pour l'ESS, with 700k retirements expected in ESS enterprises by 2025.
• There is a need for strong recruitment to replace these retirees.

ESS at the European Scale

• ESS represents significant economic power, accounting for 10% of all companies within the European Union.
• 13.6 million paid jobs in Europe are in ESS, about 6.3% of the active population in the 28 member states.
• Between 2003 and 2010, employment in this sector increased by 26.8% in all ESS locations.
• There is no common definition.
• 4 principles :
  • Non-profit
  • Democratic government
  • Social Utility
  • Independent resources of public authorities Social business in Great Britain and United States focused on idea's finality.
• The tradition of ESS appears as a complement to the dominant economic system.
• Central and eastern europe shows 3% employee salary, develops mainly in Poland and Hongria. -Lack of recognition status, many cooperatives in Greece.

Challenges for ESS

• Employment (diverse statuses).
• Local development (territorial anchorage and creation of non-relocatable jobs).
• Connection with the geographical economics.
• Relation with the employment policy.

Theoretical Applications

• Question of social activity in the third sector (two possible orientation).
• Need to know if the area of ESS (non-profit) really creates emloyer , know the conditions on why.
• Say if the non-profit companies have to create employe.
• Should creatng / working can be activity at hear of ESS?
• 50% taken in charge d'une activitée rattachée by State/local autorities
• First orientation vers the work.
• Against the logic of the compulsive work, idea of A.Gorz.

Asymmetric Information and Standard Analysis

• Asymmetry of information (ex: selection adverse, opportunisme post contractuel)
• Look to see how the provider will comport himself.
• Problem of information in the question of the control.
• Difficult to control the qualitites of the prestations. There is a risque de rente.
• Solution to this . non-for-profit specifications, this give them a signal

History of Mutual Aid

• Cooperative movements began in France in the 13th century with dairy product transformation, then expanded in the 18th century.
• Cooperative were convivial and communal.
• Fundamentals include : Regulation of equality, regulation of liberty, regulation of justice,and regulation of equitability
• Social economics were formed during the 19th century, result of the industrial revolution (which trigger eco upheaval and exodus). Solidaritiary seems necessary at the hearing for working classes.
• Transitioning from a the philanthropic principle (charity from the church) and auto organization and inter mutual.

Three currents of thought built after the XIXe

• From workers movement who's guided not from the offer profits from the State or the companies.
• Looking for a capitalist system thats not state nor companies.
• Coooperatives is essential.
• From the christian social aimed to prevent people from exlusion with models by Les coopératives de consomateurs.