Decent Work and The Social and Solidarity Economy: Report VI
Decent Work and The Social and Solidarity Economy: Report VI
110/VI
Report VI
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International Labour Office, and any failure to mention a particular firm, commercial product or process is not a
sign of disapproval.
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Contents
Page
Abbreviations ............................................................................................................................................ 5
Introduction .............................................................................................................................................. 7
Chapter 1. The SSE around the world ................................................................................................. 11
Contours of the SSE.................................................................................................................................. 11
Regional overviews .................................................................................................................................. 16
Africa .................................................................................................................................................... 16
Americas .............................................................................................................................................. 18
The Arab States .................................................................................................................................. 21
Asia and the Pacific ............................................................................................................................ 22
Europe and Central Asia ................................................................................................................... 25
Chapter 2. Contributions to decent work and sustainable development ..................................... 29
Employment and income generation .................................................................................................... 29
Social protection and the provision of social services ........................................................................ 34
Rights at work ........................................................................................................................................... 36
Gender equality ........................................................................................................................................ 38
Social dialogue .......................................................................................................................................... 40
Transition to the formal economy ......................................................................................................... 40
Crisis prevention and recovery, and promotion of peace and resilience ........................................ 42
A just digital transition ............................................................................................................................ 45
A just transition to environmental sustainability ................................................................................ 45
Chapter 3. Relationship with ILO constituents .................................................................................. 49
Governments ............................................................................................................................................ 49
Workers’ organizations ............................................................................................................................ 50
Employers’ organizations ........................................................................................................................ 52
Chapter 4. Office action on the SSE .................................................................................................... 55
Historical background ............................................................................................................................. 55
Current programmes ............................................................................................................................... 57
Development cooperation policy and partnerships ........................................................................... 58
Capacity development ............................................................................................................................. 60
Chapter 5. Decent work and the SSE: Challenges, opportunities and future directions ............ 63
4 Decent work and the social and solidarity economy
Contents
Page
Abbreviations
UN United Nations
Introduction
1. In March 2021, at its 341st Session, the Governing Body decided to place on the agenda of the
110th Session (2022) of the International Labour Conference an item related to decent work and
the social and solidarity economy (SSE), for general discussion. 1
2. That decision has paved the way for what will be the first comprehensive discussion on the
SSE at the ILO. Although the SSE is not new, its policy importance and visibility have grown
significantly since the turn of the century. The ILO Declaration on Social Justice for a Fair
Globalization (2008) recognizes a strong social economy as critical to sustainable economic
development and employment opportunities. The ILO Centenary Declaration for the Future of
Work (2019) acknowledges the role of the SSE in generating decent work, productive employment
and improved living standards for all. The ILO’s global call to action for a human-centred recovery
from the COVID-19 crisis that is inclusive, sustainable and resilient (2021) recognizes the role of
the SSE for a broad-based, job-rich recovery with decent work opportunities for all. It is therefore
timely to discuss the value added of the SSE and its role in advancing social justice through decent
work and in promoting sustainable development.
3. Three recent international labour standards make direct reference to the SSE. The Promotion
of Cooperatives Recommendation, 2002 (No. 193), emphasizes that a balanced society
necessitates the existence of strong public and private sectors, as well as strong cooperative,
mutual and other social and non-governmental sectors. The Transition from the Informal to the
Formal Economy Recommendation, 2015 (No. 204), acknowledges cooperatives and SSE units as
a means to facilitate the transition to the formal economy, while recognizing that they may
operate in the informal economy. The Employment and Decent Work for Peace and Resilience
Recommendation, 2017 (No. 205), recognizes the role of cooperatives and other social economy
initiatives in enabling recovery and building resilience.
4. The promotion of a strong SSE is also related to the promotion of sustainable enterprises.
The impact of the COVID-19 crisis has exacerbated pre-existing decent work deficits, increased
poverty, widened inequalities and exposed digital gaps within and among countries. 2 At a time
when calls for new ways of doing business are growing, the SSE can provide a basis for a model
of enterprise that fosters inclusiveness, sustainability and resilience. 3 SSE units are sustainable
enterprises to the extent that they are economically viable and follow the values and principles of
the SSE, as described in Chapter 1, which lead them to prioritize human dignity, environmental
sustainability and decent work over the legitimate quest for profit. 4
5. Since its inception, the ILO has foreseen the relevance of cooperatives – which constitute
the most organized segment of the SSE in many countries of the world 5 – to its mandate.
Article 12 of the ILO Constitution stipulates that the ILO “may make suitable arrangements for [..]
1
ILO, Minutes of the 341st Session of the Governing Body of the International Labour Office, GB.341/PV, 2021, para. 50.
2
ILO, Global call to action for a human-centred recovery from the COVID-19 crisis that is inclusive, sustainable and resilient, 2021, para. 3.
3
An enterprise is “the view of an institutional unit as a producer of goods and services. The term enterprise may refer to a
corporation, a quasi-corporation, a [non-profit institution] or an unincorporated enterprise.” See United Nations et al., System of
National Accounts 2008, 2009, para. 5.1.
4
ILO, Conclusions concerning the promotion of sustainable enterprises, International Labour Conference, 96th Session, Geneva, 2007.
The conclusions explicitly refer to cooperatives.
5
David Hiez, Guide to the Writing of Law for the Social and Solidarity Economy (SSE International Forum, 2021).
8 Decent work and the social and solidarity economy
Introduction
• provide a universal definition of the term ”social and solidarity economy”, including its
associated principles and values;
• assess the contribution of the SSE to decent work and to managing and promoting the overall
support for people through the transitions they face throughout their working lives;
• provide policy guidelines for Member States wishing to establish a conducive environment for
the national SSE;
• equip the Office with guidance on how to engage in the promotion of the SSE worldwide,
including through development cooperation; and
6
OECD, “Social economy and the COVID-19 crisis: current and future roles”, OECD Policy Responses to Coronavirus (COVID-19),
2020.
7
Declaration of Philadelphia, Part II(a).
Decent work and the social and solidarity economy
Introduction 9
• encourage the Office to establish and maintain a wide range of partnerships with institutions,
organizations and agencies representing the SSE, or involved in the promotion of the SSE. 8
• Chapter 1 delineates the contours of the SSE around the world, elaborates on the building
blocks of the concept and proposes a definition for discussion. It also presents regional
overviews of the SSE.
• Chapter 2 provides evidence of the contributions of the SSE to the global development priorities
defined by the Decent Work Agenda and the broader 2030 Agenda for Sustainable
Development (2030 Agenda).
• Chapter 3 discusses the relationship of the ILO’s tripartite constituents with the SSE, using
examples from around the world.
• Chapter 4 describes the Office’s work on the SSE, with a specific focus on historical background,
current programmes, development cooperation policy and partnerships and capacity-
development activities.
• Chapter 5 discusses the way forward in terms of strengthening the contribution of the SSE to
decent work and sustainable development. It stresses the importance of promoting a
conducive environment for the SSE, discusses the linkages between the SSE and the future of
work and proposes avenues for future Office work on the SSE. 9
8
ILO, Agenda of the International Labour Conference: Agenda of future sessions of the Conference, GB.341/INS/3/1(Rev.2), 2021,
Appendix I, para. 8.
9
The references to names or publications and examples provided in this report do not imply their endorsement by the
International Labour Office, and any failure to mention a particular name, publication or example is not a sign of disapproval. The
empirical evidence mentioned draws largely on secondary sources believed to be reliable. The Office does not guarantee the
accuracy or completeness of any such information, including links to websites, and undertakes no responsibility to verify any of
that information.
Decent work and the social and solidarity economy
11
10
An institutional unit is an “economic entity that is capable, in its own right, of owning assets, incurring liabilities and engaging
in economic activities and in transactions with other entities.” Institutional units include non-financial corporations, financial
corporations, general government, households and non-profit institutions serving households. See United Nations et al.,
para. 4.2.
11
Frank Moulaert and Oana Ailenei, “Social Economy, Third Sector and Solidarity Relations: A Conceptual Synthesis from History
to Present”, Urban Studies 42, No. 11 (2005): 2037–2053.
12 Decent work and the social and solidarity economy
Chapter 1. The SSE around the world
14. The set of values distinguishing the SSE from other subsets of the economy, as reflected in
national and subnational legislation, can be considered to fall into five different categories,
as set out below. 12
• Care for people and planet: integral human development, the satisfaction of community needs,
cultural diversity, ecological culture and sustainability.
• Egalitarianism: justice, social justice, equality, equity, fairness and non-discrimination.
• Interdependence: solidarity, mutual aid, cooperation, social cohesion and social inclusion.
• Integrity: transparency, honesty, trust, accountability and shared responsibility.
• Self-governance: self-management, freedom, democracy, participation and subsidiarity.
15. A set of SSE principles operationalizes the SSE values. Although a particular SSE value or
principle may apply outside the SSE, it is the set of SSE values and the set of principles that
together give coherence to the SSE. Five SSE principles have featured prominently in recent
legislation on the SSE: 13
• Social or public purpose: SSE units aim to meet the needs of their members, or the community
or society in which they work or live, rather than to maximize profits. The purpose may be social,
cultural, economic or environmental, or a combination thereof. Promoting internal solidarity
and solidarity with society, they seek to reconcile the interests of their members, users or
beneficiaries and the general interest. Some national laws refer to this principle as the “primacy
of people and social purpose over profit”.
• Prohibition or limitation of profit distribution: SSE units that generate a positive result (profit
or surplus) must use it in accordance with their purpose. 14 Those not prohibited from
distributing profit have significant constraints on their ability to generate and distribute it.
Those that distribute surplus do so based on member activity, such as work, service, usage or
patronage, rather than on the basis of capital invested. In the event of their sale, transformation
or dissolution, many are legally bound to transfer any residual earnings or assets to a similarly
restricted unit. Some national laws refer to this principle as the “primacy of people and work
over capital”.
• Democratic and participatory governance: The rules applicable to SSE units provide for
democratic, participatory and transparent governance, enabling member control through
active participation in setting policies and making decisions and by holding elected
representatives accountable. In primary SSE units, members have equal voting rights (one
member, one vote). Horizontal and vertical structures of the SSE are also organized
democratically.
• Voluntary cooperation: Participation in SSE units is not forced or compulsory and must involve
a significant element of choice. Members and users join and remain in SSE units voluntarily and
freely, without penalty or the threat of a penalty for non-participation. SSE units may engage in
voluntary cooperation and mutual support with other SSE units, creating vertical and horizontal
structures.
12
The SSE values listed are based on a review by the Office of selected legislation on the SSE from Argentina (Entre Rios), Cabo
Verde, Honduras, Mexico, Portugal and the Bolivarian Republic of Venezuela, all of which make explicit reference to the SSE values.
13
The SSE principles listed are based on a review of selected legislation on the SSE from Argentina (Entre Rios, Mendoza), Belgium
(Wallonia), Bulgaria, Cabo Verde, Cameroon, Canada (Quebec), Colombia, Djibouti, Ecuador, France, Greece, Honduras,
Luxembourg, Mexico, Portugal, Romania, Senegal, Slovakia, Spain, Tunisia, Uruguay and the Bolivarian Republic of Venezuela.
In cooperatives, surplus is derived from transactions with members, whereas profit is derived from transactions with non-
14
members, if any. See Hagen Henrÿ, Guidelines for Cooperative Legislation: Third revised edition (ILO, 2012).
Decent work and the social and solidarity economy
Chapter 1. The SSE around the world 13
• Autonomy and independence: SSE units are self-governed. They must enjoy autonomy and
independence from public authorities and other entities outside the SSE and must not be
subject to undue interference or control. If they enter into agreements with other SSE units or
public and private sector actors or raise capital from external sources, they must do so on terms
consistent with the SSE values and principles.
16. The production of goods and services is the main kind of SSE activity featured in national
legislation. Some national laws also refer to consumption. SSE laws that address the
accumulation of assets typically place restrictions on such accumulation. Around the world, SSE
activities take place that fall into all the sections of the International Standard Industrial
Classification of All Economic Activities (fourth revision). 15
17. The agents of the SSE are institutional units that subscribe to the set of SSE values and
principles. National legislation and international definitions enable the identification of a diversity
of organizational forms in the SSE, including but not limited to cooperatives, mutual societies,
associations, foundations, self-help groups and social enterprises, as described below.
15
UN, International Standard Industrial Classification of All Economic Activities (ISIC), Rev.4, 2008.
16
ILO, Recommendation No. 193.
17
UN et al., para. 23.22.
18
UN et al., para. 2.17(e) and 23.19(g).
19
UN et al., para. 23.19(f).
20
UN et al., para. 23.24.
21
UN, Satellite Account on Non-profit and Related Institutions and Volunteer Work, 2018.
14 Decent work and the social and solidarity economy
Chapter 1. The SSE around the world
18. Many SSE laws include context-specific forms of organization as part of the SSE. Such forms
notably include ejidosand comunidades, 22 workers’ organizations, pre-cooperatives, insertion
enterprises, special employment centres, platform cooperatives, community forestry and fishery
associations, producers’ and peasants’ organizations, economic interest groups, popular
economic units, microfinance associations, cultural, recreational and local development
associations with altruistic goals, and community and self-management subsectors. National laws
on the SSE typically consider that any other form of organization is part of the SSE if it observes
the SSE values and principles as spelled out in that law.
19. The SSE transcends traditional dichotomies. It includes market and non-market producers and
units operating in the formal and informal economies. Examples of market producers include
cooperatives, mutuals and social enterprises, while non-market producers include associations
and foundations. SSE units have a dual nature. They are both organizations and enterprises. As
groups of persons organized with a particular purpose, they are organizations. As producers of
goods and services, they are enterprises. Some texts have used the term “enterprise” more
narrowly than its international definition, for example, restricting SSE enterprises to market units
and SSE organizations to non-market units. Although some conceptualizations exclude informal
economy units from the SSE, Recommendation No. 204 recognizes that SSE units may operate in
the informal economy.
20. Opinions differ on whether the SSE is part of the private sector or a subset of the economy
that is distinct from the public and private sectors. References to the “private sector” in ILO
tripartite discussions seem to reflect two different understandings of the term. 23 The first refers
to the private sector as encompassing institutional units that are neither part of, nor controlled
by, government. The second refers to the private sector as encompassing enterprises that are
outside the public sector and whose primary purpose is to maximize profits and distribute them
based on capital invested. In the first meaning, the private sector includes the SSE, which remains
distinct from, and irreducible to, the profit-maximizing private sector. In the second meaning, the
SSE is distinct from both the public and private sectors.
21. There are many commonalities across SSE policies and legislation in the specification of the
SSE. The building blocks for a proposed definition of the SSE include a single term (social and
solidarity economy); a set of principles that are derived from a set of values; and a variety of
organizational forms. Together, they provide the basis for a proposed definition for discussion.
The proposed definition of the social and solidarity economy for discussion
The social and solidarity economy (SSE) encompasses institutional units with a social or public purpose,
engaged in economic activities based on voluntary cooperation, democratic and participatory
governance, autonomy and independence, the rules of which prohibit or limit the distribution of profit.
SSE units may include cooperatives, associations, mutual societies, foundations, social enterprises, self-
help groups and other units operating in accordance with the values and principles of the SSE in the
formal and the informal economies.
22
In Mexico, ejidos are areas of communally farmed land under a system that is supported by the State and comunidades are land
associations where land ownership is collectively held.
23
ILO, Report of the Committee on the Promotion of Cooperatives, Record of Proceedings, International Labour Conference,
90th Session, 2002 (Record No. 23).
Decent work and the social and solidarity economy
Chapter 1. The SSE around the world 15
22. The proposed definition draws on existing SSE policies and legislation. It is also informed by
the most recent conceptual work on SSE policy and statistics. 24 It is thus readily
operationalizable. The proposed definition is intended to be flexible and to accommodate diverse
situations in different national contexts, in line with the diversity of SSE units around the world
and the multiplicity of conceptual frameworks in SSE policy, legislation and statistical frameworks.
23. The proposed definition can provide the impetus for policy-oriented social dialogue on the
SSE at multiple levels. Moreover, it is intended to enable the further refinement of statistical
frameworks on the SSE and, consequently, more systematic data collection. Three challenges exist
in respect of measuring and comparing the scope, size and impact of the SSE across different
locations or contexts: the complexity of the SSE itself; the lack of a universal definition of the SSE;
and the underdevelopment of methodologies for SSE measurement. 25 Data on the size of the SSE
exist for certain organizational forms (mainly cooperatives, credit unions and mutual societies)
and for certain regions or countries, but not for the SSE in its entirety at the global level. 26 National
statistical offices typically do not measure and analyse the SSE as a specific subset of the economy,
so its components appear under separate headings in statistics. Satellite accounts have been
developed in countries such as Portugal and Spain for all SSE units covered by their respective
legislation.
24. Conceptual work on the measurement of the SSE can build on recent guidance concerning
the measurement of cooperatives. In 2013, the 19th International Conference of Labour
Statisticians adopted a resolution calling for increased efforts to compile statistics on
cooperatives. 27 Thereafter, the ILO, in collaboration with COPAC, prepared the Guidelines
concerning statistics of cooperatives, which were endorsed by the 20th International Conference in
2018. 28 Efforts are under way by the Office to test and develop the information in the Guidelines
in selected countries towards the development of a coherent, harmonized and standardized set
of statistics on cooperatives. 29 In 2021, the UNTFSSE produced three research papers on SSE
statistics, focusing on: the state of the art; 30 mapping exercises; 31 and policy recommendations
and directions for future research. 32
24
Bénédicte Fonteneau et al., Social and Solidarity Economy: Our common road towards Decent Work, Reader for the ILO Academy
on the Social and Solidarity Economy (International Training Centre of the ILO, 2011); Peter Utting, Public policies for SSE: Assessing
progress in seven countries (International Training Centre of the ILO, 2017); Bénédicte Fonteneau and Ignace Pollet, The contribution
of social and solidarity economy and social finance to the future of work (ILO, 2019); Marie J. Bouchard and Gabriel Salathé-Beaulieu,
Producing Statistics on Social and Solidarity Economy: The State of the Art (UNTFSSE, 2021); UN, Satellite Account on Non-profit and
Related Institutions and Volunteer Work, 2018.
25
UNRISD, “Measuring the Scale and Impact of Social and Solidarity Economy”, Issue Brief No. 09, August 2018.
26
Bouchard and Salathé-Beaulieu, 11.
27
ILO, Resolution concerning further work on statistics of cooperatives, 19th International Conference of Labour Statisticians,
2013.
28
ILO, Guidelines concerning statistics of cooperatives, 20th International Conference of Labour Statisticians, Geneva, 2018.
29
Target countries are Costa Rica, Italy, the Republic of Korea, Turkey and the United Republic of Tanzania. For more information,
see ILO, "Strengthening Social and Solidarity Economy Knowledge Base”.
30
Bouchard and Salathé-Beaulieu.
31
Coline Compère, Barbara Sak and Jérôme Schoenmaeckers, Mapping International SSE Mapping Exercises (UNTFSSE, 2021).
32
Rafael Chaves-Avila, Producing Statistics on Social and Solidarity Economy. Policy Recommendations and Directions for Future
Research (UNTFSSE, 2021).
16 Decent work and the social and solidarity economy
Chapter 1. The SSE around the world
Regional overviews
25. This section examines the situation of the SSE in different regions. It discusses regional
variations in the use of terminology relating to the SSE, provides highlights of public policies,
legislation and regulations on the SSE in each region and explores how the SSE is addressed in
regional economic or political organizations.
Africa
26. SSE principles have been applied in the Africa region for centuries. References to the concept
itself were first made in the African context in the first decade of the twenty-first century, initially
in French-speaking North and West Africa and then in the rest of the continent. However, self-help
groups, associations, mutuals and similar member-based organizations have long been
widespread on the continent. Their origins can be traced back to traditional systems, structures
and practices, such as those embodying the African spirit of ubuntu (humanity) in Eastern, Central
and Southern Africa, umoja (union) in East Africa and harambee (community self-help) in Kenya. 33
27. Many traditional forms of cooperation have survived the colonial period. They have paved
the way for the emergence and expansion of less formal SSE units that promote mutual self-help,
including mutual benefit organizations and community-based health insurance schemes, which
have extended health insurance coverage in rural areas and in the informal economy. 34 Member-
based social finance institutions, including rotating savings and credit associations, are
widespread on the continent, while various forms of microinsurance, including burial societies,
are common in Southern and Eastern Africa. 35
28. Formal cooperatives were introduced in the early years of the twentieth century by the then
colonial administrations. In the post-colonial period from the 1960s to the mid-1990s, many
national governments used cooperatives to promote social and economic development,
especially in rural areas. However, government control over, and support to, cooperatives
diminished considerably during the structural adjustment era (in the 1980s and 1990s), resulting
in the decline of state-sponsored cooperative structures. Autonomous and independent
cooperatives are being revitalized through a series of political, legislative, social and economic
reforms that have been introduced since the mid-1990s.
29. Social enterprises are expanding in Southern, Eastern and North Africa. 36 A 2020 study
estimates that, in Côte d’Ivoire, Egypt, Ethiopia, Ghana, Kenya, Morocco, Nigeria, Rwanda,
Senegal, South Africa, Tunisia and Uganda, social enterprises could provide about 5.5 million
direct jobs in social enterprises in 2030. Among these countries, Nigeria has the highest number
of social enterprises (1.2 million), while Rwanda has the lowest (4,000). The financial and non-
financial support systems and policy environments in these countries also vary widely in terms of
their conduciveness for the establishment and growth of social enterprises. 37
33
Carlo Borzaga and Giulia Galera, The potential of the social economy for local development in Africa: An exploratory report (European
Parliament, 2014).
34
Nicholas Awortwi, “Social protection is a grassroots reality: Making the case for policy reflections on community-based social
protection actors and services in Africa”, Development Policy Review 36, Issue S2 (2018): O897–O913.
35
ILO, Protecting the poor: A microinsurance compendium II, 2012, 218.
36
Angela Hoyos and Diego F. Angel-Urdinola, “Assessing International Organizations’ Support to Social Enterprise”, Development
Policy Review 37 (2019): O213–O229.
37
Emily Barran et al., Social Enterprises as Job Creators in Africa. The Potential of Social Enterprise to Provide Employment Opportunities
in 12 African Countries 2020–2030. Study (Siemens-Stiftung, 2020).
Decent work and the social and solidarity economy
Chapter 1. The SSE around the world 17
30. Public policies promoting the SSE have been on the rise in the continent. Five countries (Cabo
Verde, Cameroon, Djibouti, Senegal and Tunisia) have recently developed legal and institutional
frameworks on the SSE, while two others (Morocco and South Africa) 38 are in the process of
developing them. The Tunisian SSE law, developed with support from the ILO in a consultative
and tripartite manner and adopted in 2020, sets the reference framework and boundaries for the
SSE. Cameroon prepared a National Programme for the Development of the Social Economy
(PNDES) in 2020. Mali adopted a National Policy for the Promotion of SSE and its action plan in
2014 and a law establishing the National Support Centre for the Promotion of the SSE in 2017. The
Plan for an Emerging Senegal 2014–23 considers the SSE as an instrument for the transition to
the formal economy.
31. The following examples illustrate the size of the SSE in four countries in the Africa region:
• The SSE in Tunisia is composed of 358 agricultural cooperatives, 3,000 producers’ associations,
48 mutual benefit organizations, 289 microfinance institutions and around 21,000 associations.
It represents 1 per cent of the country’s gross domestic product and 0.6 per cent of its labour
force. 39 In 2020, there were an estimated 33,000 social enterprises in the country. 40
• In Cameroon, a 2019 ILO survey of 395 SSE units showed that the most prevalent organizational
forms were common initiative groups (58 per cent), cooperatives (25 per cent) and associations
(15 per cent). Women represented 44 per cent of the membership of those units and 57 per
cent of their workforce. The main branches of economic activity for SSE units were crop
production (56 per cent), animal production (22 per cent) and manufacturing (18 per cent). 41
• The number of social enterprises in Kenya, excluding cooperatives, was estimated at around
3,244 in 2016. 42 Savings and credit cooperative organizations provide financial services to over
4 million Kenyans and frequently offer services that cannot be found elsewhere. 43 The share of
cooperatives in the marketing of key agricultural products (coffee, sugar cane, pyrethrum and
milk) grew from 18.9 per cent in 2015 to 22.2 per cent in 2019. 44 Kenya’s cooperative movement
consisted of 21,000 societies in 2019 (up from 17,500 in 2015), with 14 million individual
members and 555,000 employees.
• In 2019, South Africa had around 160,000 cooperatives, 48,000 non-profit organizations and
more than 24,000 social enterprises. 45 The National Stokvel Association of South Africa
represents 810,000 stokvel groups, with over 11 million members. 46
38
In 2019, the Government of South Africa, with the ILO’s technical support, published a draft green paper on a social economy
policy, which was pending Cabinet approval in December 2021 when the Office report was being drafted. ILO, “A key step taken
towards developing a social economy policy in South Africa”.
39
Akram Belhaj Rhouma, Public Policies for the Social and Solidarity Economy and their Role in the Future of Work: The Case of Tunisia
(ILO, 2019).
40
Barran et al.
41
ILO and Ministry of Small and Medium-sized Enterprises, Social Economy and Handicrafts (MINP MEESA) of Cameroon,
Evaluation des besoins des unités de l’économie sociale et identification des chaînes de valeur prioritaires pour la création d’emplois
décents au Cameroun (ILO, 2021).
42
British Council, The state of social enterprise in Kenya, 2017.
43
Alliance for Financial Inclusion, Meeting the Financial Needs of the Agricultural Sector through Prudentially Regulated SACCOs in
Kenya, 2017.
44
Kenya National Bureau of Statistics, Economic Survey 2020, 2020.
45
Department of Trade, Industry and Competition of South Africa, Measuring the Social Economy in South Africa, 2019.
46
A stokvel is a rotating savings and credit association in South Africa. See National Stokvel Association of South Africa, “Statement
on Measures to Prevent COVID-19 Coronavirus Transmission”.
18 Decent work and the social and solidarity economy
Chapter 1. The SSE around the world
32. The SSE is being recognized as a pathway for local, sustainable and inclusive development
by various organizations and networks in the region. 47 The African Union recognizes the social
economy as a key contributor to job creation and is developing a regional SSE strategy, with
support from the ILO. 48 The outcome documents of the 12th, 13th and 14th African Regional
Meetings of the ILO (held in 2011, 2015 and 2019, respectively) all called for the promotion of the
SSE. 49 The African Development Bank’s Private Sector Development Strategy 2013–17 emphasized
the significant potential that social enterprises and social businesses have in fostering social
innovation, entrepreneurship and value chain development. 50 The African Network for the Social
and Solidarity Economy, which was established in 2010 and has 25 member countries, provides
support to its members in formulating national SSE legal and policy frameworks through national
networks. Such national networks exist, for example, in Cameroon, Mali, Morocco, Senegal and
Tunisia.
Americas
33. The SSE has a rich and diverse history in the Americas, where solidarity-based practices date
back to a period before the establishment of the modern State. SSE units that have
prominence in the region include producer cooperatives, fair trade, ethical consumption, informal
economy and indigenous peoples’ associations, social finance institutions and other community-
based initiatives such as quilombos. 51 In the region, the SSE has been referred to as the “social
economy”, the “solidarity economy”, the “popular economy” and the “social sector”. 52 Across the
Americas, many SSE units are large employers and provide services to wide segments of the
population in sectors including agriculture, finance, retail, utilities such as electricity and health
insurance.
34. Indigenous peoples contribute their knowledge of grassroots economic organizing based
on principles of community reciprocity. 53 In the Americas, indigenous peoples have a long
tradition of community-based cooperation. The buen vivir or vivir bien philosophy of indigeneous
peoples in the Andean and Amazonian regions, enshrined in the 2008 and 2009 constitutions of
Ecuador and the Plurinational State of Bolivia respectively, promotes reciprocity and solidarity. 54
Across those regions, SSE units of indigenous people have sought to develop practices consistent
with this philosophy. 55 There is a similar tradition of community-based cooperation among
47
ILO, Social and solidarity economy actors: Driving the development of social innovation in Africa, forthcoming.
48
African Union, “Second session of the specialised technical committee on social development, labour and employment (STC-
SDLE-2)”, 2017.
49
The ILO’s African Regional Meeting brings together the tripartite constituents to review the progress made by African countries
in implementing the Decent Work Agenda in the light of the 2030 Agenda and the African Union’s Agenda 2063.
50
African Development Bank Group, Supporting the transformation of the private sector in Africa. Private Sector Development Strategy,
2013-2017, 2013.
51
Quilombos are contemporary peasant communities that were established by people of African descent who resisted slavery in
Belize, Brazil, Colombia, Ecuador, Honduras, Nicaragua and Suriname. In many of these countries, the right of these communities
to traditional lands is now recognized in national law.
52
Marcelo Saguier and Zoe Brent, “Social and Solidarity Economy in South American regional governance”, Sage journals 17, Issue 3
(2017): 259–278.
Julio Álvarez Quispe, “La economía comunitaria de reciprocidad en el Nuevo contexto de la Economía Social y Solidaria: Una
53
indigenous communities in North America. In Canada, for example, the Kinoosao Fishers’ Co-op
on Reindeer Lake is one of the oldest SSE units, incorporated in 1945. From the 1950s to the 1990s,
there was a steady increase in indigenous cooperatives in the country. The Canadian Co-operative
Association compiled a list of 123 indigenous cooperatives in 2012. 56
35. The SSE has features that differ across subregions of the Americas. For instance, in the
English-speaking Caribbean, credit unions have a strong presence. The Caribbean Confederation
of Credit Unions is the apex trade and development organization for financial and non-financial
cooperatives in the Caribbean. Membership-based organizations of informal economy workers
are prominent in the Andean subregion and in the countries of the Southern Common Market
(MERCOSUR). Most of the members of the Latin American and Caribbean Waste Pickers’ Network
(Red LACRE) come from these two subregions. 57 Fair trade associations and agricultural
cooperatives that work to improve the negotiation power of smallholder farmers and agricultural
workers have a strong presence in Central America.
36. Governments are increasingly adopting SSE policies and mainstreaming the SSE into public
policy frameworks. Five countries (Colombia, Ecuador, Honduras, Mexico 58 and Uruguay) and
one province (Quebec, Canada) have adopted SSE framework laws. Furthermore, SSE framework
laws are under development in Brazil and the Dominican Republic. A Framework Law for
Cooperatives in Latin America was adopted in 2009, to provide guidance on key aspects of
cooperative legislation for countries in the region. In Colombia, an inter-sectoral Committee on
the Social and Solidarity Economy Sector was created in 2020 to coordinate and guide the
formulation and implementation of policies and programmes on the SSE. Costa Rica has adopted
a public policy and action plan on the SSE for 2021–25 and established a National Chamber of the
Social Solidarity Economy (CANAESS).
37. The following examples illustrate the size of the SSE in five countries in the Americas:
• In Argentina, more than 80 per cent of the rural electricity network is run cooperatively, and
7 million Argentinians receive electrical power from cooperatives. Mutuals provide health
services to over 2.5 million people, with 7,000 mutuals providing 40 per cent of private health
services. 59
• In 2019, Canada had 5,812 non-financial cooperatives, employing 105,000 people and
generating an annual turnover of 49.3 billion Canadian dollars (US$40.7 billion). 60 The Canadian
province of Quebec has 11,000 SSE units, employing 220,000 persons and generating a
turnover of 47.8 billion Canadian dollars. 61
• Costa Rica has more than 6,600 SSE units with integrated development associations (2,850) and
solidarity associations (1,467) being the most prominent. 62 The national cooperative census of
2012 indicated that 21 per cent of Costa Ricans were members of cooperatives, the majority of
them in the sectors of finance and insurance, commerce, industry and agriculture. 63
56
Co-operatives First, “Co-operatives in Aboriginal Communities in Canada”, 2016.
57
Red LACRE, “Quiénes Somos”.
58
Article 25 of Mexico’s Constitution mandates the State to facilitate the expansion of the economic activity of the SSE.
59
Silvina Lais Puzino, “La actualidad de la Economía Social en Argentina”, Anuario Iberoamericano de la Economía Social, No. 3
(CIRIEC, 2018): 19–28.
60
Statistics Canada, “Canadian Cooperatives, 2019”, 3 March 2021.
61
Chantier de l’économie sociale, “Discover Social Economy”.
62
Ministry of Labour and Social Security of Costa Rica, Política Pública de Economía Social Solidaria 2021-2025.
63
INFOCOOP, IV Censo Nacional Cooperativo, 2012.
20 Decent work and the social and solidarity economy
Chapter 1. The SSE around the world
• Jamaica has 50 credit unions. More than 50 per cent of those active in the agricultural sector
are a member of one of 39 agricultural cooperatives. 64
• In Mexico, the SSE comprises 61,000 SSE units with 12 million members, including 15,000
cooperatives with 8 million affiliates, 100 unions and eight confederations. 65
38. The SSE is well-represented in the regional organizations of the Americas. The Community of
Latin American and Caribbean States (CELAC) promotes “enterprises of social production and
cooperatives”. MERCOSUR adopted a Declaration in 2001 recognizing the contribution of the SSE
to social cohesion, job creation and decent work, and democracy, among others. 66 In 2019, the
Organization of American States signed a cooperation agreement with the then regional
representative of the ICA in the Americas (ICA–Americas) to identify and work on common projects
so that both institutions can support Member States in their efforts to promote and facilitate the
cooperative model, with the ultimate goal of promoting greater inclusion and development in the
region. 67 In 2020, the UN Economic Commission for Latin America and the Caribbean signed a
cooperation agreement with Cooperatives of the Americas, a regional organization of the ICA,
with a focus on building back better together from the COVID-19 pandemic. It has also been
undertaking joint events with governmental social economy development organizations in the
region, such as the National Institute of Social Economy (INAES) in Mexico, to explore the future
of the SSE in the region. 68
39. There are several active regional networks working on the SSE in the Americas. The
Intercontinental Network for the Promotion of Social Solidarity Economy in Latin America and the
Caribbean (RIPESS LAC) 69 and the Network of Latin American Researchers of the Social and
Solidarity Economy (RILESS) contribute to the production and sharing of knowledge on SSE. The
Ibero-American Employment and Social and Cooperative Economy Observatory (OIBESCOOP),
jointly established by SSE movements in Latin America, Portugal and Spain, publishes annual
reports on the state of the SSE in the subregion. The cooperative movement in Latin America
participates in the Cooperatives of the Americas network, which is the regional representative of
the ICA (formerly the ICA–Americas). The International Gender and Trade Network and the Latin
American Network of Women Transforming the Economy (REMTE) have contributed to the SSE
with inputs from the care economy and feminist economics perspectives. The Latin American and
Caribbean Network of Fair Trade Small Producers and Workers (CLAC), part of the Fairtrade
International system, has over 900 organizations in 24 countries in the region. 70
64
Department of Co-operatives and Friendly Societies of Jamaica, “Development of the Cooperative: Movement in Jamaica”, 2020.
65
Juan José Rojas Herrera et al., “Panorama general de la Economía Social en México”, Anuario Iberoamericano de la Economía
Social, No. 3 (CIRIEC, 2018): 109–119.
66
MERCOSUR has two inter-institutional forums dedicated to the SSE: the Specialized Meeting of Co-operatives of MERCOSUR and
the Specialized Meeting of Family Farming. These forums monitor progress towards the 2030 Agenda and the implementation of
the Strategic Social Action Plan for MERCOSUR, with a social and solidarity focus.
67
Organization of American States, “The OAS and the International Cooperative Alliance to collaborate in favor of Member States”,
30 September 2019.
68
UN Economic Commission for Latin America and the Caribbean, “Construir un nuevo futuro: la Economía Social y Solidaria en la
recuperación sostenible y con igualdad”, 9 June 2021.
69
A total of 13 countries have member networks in RIPESS LAC: the Plurinational State of Bolivia, Brazil, Chile, Colombia, Costa
Rica, the Dominican Republic, Ecuador, El Salvador, Guatemala, Honduras, Mexico, Nicaragua and Peru.
70
CLAC, 2020 Memoria Anual, 2021.
Decent work and the social and solidarity economy
Chapter 1. The SSE around the world 21
71
Hüseyin Polat, “Cooperatives in the Arab World: Reaffirming their validity for local and regional development”, Background paper
for the Sub-Regional Knowledge Sharing Workshop on Cooperatives in the Arab States, ILO Regional Office for Arab States, 2010.
72
Islamic Financial Services Board and the World Bank, Realising the Value Proposition of the Takaful Industry for a Stable and Inclusive
Financial System, 2017.
73
Hussain Qadri and M. Ishaq Bhatti, The Growth of Islamic Finance and Banking: Innovation, Governance and Risk Mitigation
(Routledge, 2021).
74
UN Economic and Social Commission for Western Asia, “Social and Solidarity Economy as a Tool for Social Justice”, Policy Brief:
Participation in Public Policy Processes, Issue No. 4, 2014.
75
The youth unemployment rate in the region was estimated to be 23 per cent in 2021, considerably higher than the global
average of 13.8 per cent, according to ILO statistics of 2020.
76
Such forms may include non-governmental organizations, private businesses, cooperatives or civil companies, or a combination
thereof.
77
Ashoka, 15 Years of Change: Ashoka in the Arab World, 2019.
22 Decent work and the social and solidarity economy
Chapter 1. The SSE around the world
Similar efforts are under way in Saudi Arabia and the United Arab Emirates. Efforts are also under
way to develop a policy and legal framework for social enterprises in countries such as Lebanon. 78
45. The following examples illustrate the size of the SSE in three countries and territories in the
region:
• In Jordan, a total of 1,592 cooperatives were registered in 2018, with a total membership of
142,000 persons, 79 creating around 20,000 direct job opportunities. 80 Social enterprises are
mainly registered under the umbrella of not-for-profit organizations. Many social enterprises
seek to engage with migrant and refugee populations through training and livelihood
opportunities. 81
• In Kuwait, consumer cooperatives emerged in 1962, originally to sell essential consumer goods
at subsidized prices. In 2018, the 70 Kuwaiti consumer cooperatives, which operate around
3,000 outlets, controlled 65 per cent of the food and beverage market in the country. 82
Consumer cooperatives allocate 25 per cent of their net profit to charities. Similar cooperatives
exist in all GCC countries and in the other Arab States.
• In the Occupied Palestinian Territory, there were 866 cooperatives (677 in the West Bank and
189 in the Gaza Strip) in 2019. The total cooperative membership consisted of 54,000
individuals. 83 Established in 2005, the Union of Cooperative Associations for Saving and Credit
has 12 saving and credit associations covering around 224 locations, including 154 Palestinian
villages. These associations had 5,281 users by the end of 2019, 85 per cent of which were
women. 84
46. Several recent initiatives on promoting the SSE are under way at the regional level. In 2014,
the UN Economic and Social Commission for Western Asia, which comprises 20 Arab States, called
for the acknowledgement of the SSE and its potential as a tool for enhancing social justice in the
region. 85 In March 2017, the Council of Arab Economic Unity organized a seminar on the SSE,
which concluded with a recommendation to the League of Arab States to incorporate the SSE in
its development strategies and programmes. 86 In August 2017, the SSE was, for the first time,
placed on the agenda of the Economic and Social Council of the Arab League for discussion as a
potential mechanism to counter precarious work and support social integration in Arab countries.
78
UNTFSSE, Mapping of Intergovernmental Documentation on Social and Solidarity Economy (SSE), 2018.
79
Department of Statistics of Jordan, Yearbook of Statistics 2018, 2019.
80
Jordanian National Commission for Women, The current status, structure, and legislation framework of cooperatives in Jordan 2016
(from gender perspectives), 2016.
81
Oxfam, MEDUP! Jordan Social Enterprise Study, 2018.
82
Oxford Business Group, “Traditional retail segments show positive trends, while Kuwait’s e-commerce market undergoes rapid
expansion”.
83
Palestinian National Authority, National Strategy for the Cooperative Sector: Reform and Development 2021–23, 2020.
84
Union of Cooperative Associations for Saving and Credit, “The History of Association’s Union”.
85
UN Economic and Social Commission for Western Asia, “Social and Solidarity Economy as a Tool for Social Justice".
86
UNTFSSE, Mapping of Intergovernmental Documentation on Social and Solidarity Economy (SSE).
Decent work and the social and solidarity economy
Chapter 1. The SSE around the world 23
(labour exchange) and moyai (working together) in Japan. 87 While the term ”social and solidarity
economy” is relatively new in the region, the social economy strand of the SSE is present in many
Asian countries, often in the form of non-governmental or third sector organizations and social
enterprises.
48. The Asian financial crisis of 1997 reawakened the spirit of reciprocity rooted in many Asian
cultures. It paved the way for the emergence of the social economy, a development further
accelerated by the global financial crisis of 2007–08. The SSE in the Asia and the Pacific region
encompasses cooperatives, associations, community self-help groups and mutual aid
organizations, with a long trajectory in the region. It also includes social enterprises, a new form
of enterprise that blends social objectives with income-generating activity, and organizations
representing informal economy workers. 88
49. As in other regions, cooperatives constitute the backbone of the SSE in the Asia and the
Pacific region. Overall, the region counts almost 500 million cooperative members, 46 per cent
of the total global cooperative membership. 89 In many formerly planned economies, cooperatives
were historically associated with collectivization policies. In other countries, cooperatives were
subjected to excessive government interventions. The extent of government influence and control
over cooperatives and other economic units has subsided significantly since the 2000s, as
demonstrated by the evolution of the cooperative policies and laws in line with the guidance
provided in Recommendation No. 193.
50. Social enterprises have been gaining momentum in Asia in the past 20 years. India reports
close to 2 million social enterprises, 90 Indonesia 342,000, 91 Japan 205,000 and the Republic of
Korea 2,700. Social enterprises are also present in Fiji, Pakistan, Solomon Islands, Viet Nam and
other countries. Several governments have implemented laws and policies to support the growth
of social enterprises. For example, the Republic of Korea enacted the Social Enterprise Promotion
Act in 2007, providing social entrepreneurs with access to professional services, technical
assistance, rental subsidies and reduced taxes. Malaysia produced a Social Enterprise Blueprint
for 2015–18 to develop a social enterprise ecosystem with targeted policy measures. The
Government of Thailand established a Social Enterprise Office in 2010 and adapted the Social
Enterprise Promotion Act in 2019 to facilitate tax relief and incentives for social enterprises. In
Cambodia and Singapore, national strategic documents mention social enterprises. Indonesia
and the Philippines are in the process of establishing national policies that promote social
enterprises. 92
51. The following examples illustrate the size of the SSE in four countries in the Asia and the
Pacific region:
87
For further information about yui and moyai in Japan, see Morio Onda, “Mutual Help Networks and Social Transformation in
Japan”, American Journal of Economics and Sociology 72, No. 3 (2013): 531–564.
88
ILO research in six countries under the “Strengthening Social and Solidarity Economy in Asia project” captured the diverse and
evolving nature of the SSE by identifying a spectrum of organizational forms that either share features commonly associated with
the SSE or are potentially supportive of it.
89
UN Department of Economic and Social Affairs, Measuring the Size and Scope of the Cooperative Economy: Results of the 2014 Global
Census on Co-operatives, 2014.
90
Usha Ganesh et al., The Indian Social Enterprise Landscape: Innovation for an Inclusive Future (Bertelsmann Stiftung, 2018).
91
ILO, Mapping the Social and Solidarity Economy Landscape in Asia: Spotlight on China, ILO brief: Strengthening Social and Solidarity
Economy Policy in Asia, 2021.
92
UN Economic and Social Commission for Asia and the Pacific, Policy approaches to scaling social enterprise and impact investment
in Asia and the Pacific, 2017.
24 Decent work and the social and solidarity economy
Chapter 1. The SSE around the world
• In China, there were more than 30,000 cooperative enterprises in 2020. Of these, more than
60 per cent were in the provinces of Zhejiang (8,030), Beijing (6,395) and Guangdong (4,704). In
the same year, urban cooperatives employed 690,000 persons. 93
• In India, the number of cooperatives grew from 316,000 with over 142 million members in
1984–85 to 854,000 with over 290 million members in 2016–17. 94 In the early 2000s, joint forest
management groups numbered approximately 84,000, involving 8.4 million households. 95 A
total of 44,000 labour contracting cooperatives provide jobs for 2.73 million workers, mostly in
labour-intensive construction and forestry work valued at US$318 million per year. 96 More than
30 million Indian citizens, mostly women, participate in 2.2 million self-help groups. In 2021,
the Self-Employed Women’s Association (SEWA) had 153 collective social enterprises, involving
480,000 women. 97
• In Japan, approximately 30 per cent of the population is a member of one of 591 consumer
cooperatives. Most of the nearly 10,000 associations and foundations provide specific services
at the national or regional (prefectural) levels. Over 50,000 specified non-profit corporations
that are part of the SSE operate in the fields of vocational skills and employment, health and
social care, social education and community development, science, culture, arts and the
environment. 98
• In New Zealand, the top 30 cooperatives, mutuals and societies have a total revenue of
42.3 billion New Zealand dollars (approximately US$30.5 billion) and a membership of
1.4 million, and employ close to 48,500 individuals. 99
52. Several regional organizations and networks support the development of the SSE. The
Association of Southeast Asian Nations (ASEAN) adopted the Socio-Cultural Community Blueprint
2025 referring to social enterprises and social entrepreneurs as key stakeholders and spheres of
action to be promoted and supported by the ASEAN community. 100 The South Asian Association
for Regional Cooperation launched a Social Enterprise Development Programme to fund
approximately 80 social enterprises across its eight Member States annually. 101 The Asian
Development Bank supports research, analysis, awareness-raising and networking to promote
social enterprises. The UN Economic and Social Commission for Asia and the Pacific established a
task force on micro, small and medium-sized enterprises and social enterprise in 2012. The Asian
Solidarity Economy Council, established in 2011, brings together 18 national and continental
networks in 21 countries of Asia.
93
National Bureau of Statistics of China, China Statistical Yearbook, 2021.
94
National Cooperative Union of India, Indian Cooperative Movement. A Statistical Profile: Sustainable Development and Growth
through Cooperatives, 2018, 2018.
95
Bina Agarwal, “Demonstrating the Power in Numbers: Gender, Solidarity and Group Dynamics in Community Forestry
Institutions”, in Social and Solidarity Economy: Beyond the Fringe, ed. Peter Utting (London: Zed Books, 2015).
96
National Labour Cooperatives Federation of India Limited, “About NLCF”.
97
SEWA Enterprise Support System, “Women-Owned Collective Enterprises”.
98
ILO, Mapping the Social and Solidarity Economy Landscape in Asia – Spotlight on Japan, ILO brief: Strengthening Social and Solidarity
Economy Policy in Asia, 2022.
99
ICA-Asia and the Pacific, “Second ICA-AP Meeting on Development of Cooperatives in Pacific Islands”, 26 February 2020.
100
ASEAN Secretariat, ASEAN Socio-cultural Community Blueprint 2025, 2016.
101
Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka.
Decent work and the social and solidarity economy
Chapter 1. The SSE around the world 25
The German version of cooperative self-help was included in 2016 on the United Nations Educational, Scientific and Cultural
102
and Central Asia, Policy Studies on Rural Transition No. 2014–2, 2014.
26 Decent work and the social and solidarity economy
Chapter 1. The SSE around the world
population. 108 After 2008, the term “social entrepreneurship” became familiar in the Russian
Federation, where the State has become active in supporting social enterprises. 109
57. The following examples illustrate the size of the SSE in four countries in Europe and Central
Asia:
• In Kyrgyzstan, a 2018 survey of 148 institutional units featured profit organizations (37 per
cent), social enterprises (32 per cent) and private businesses (17 per cent), followed by self-help
groups and traditional community groups known as jamaats (9 per cent) and cooperatives
(4 per cent). Social care (12 per cent), education (11 per cent) and retail (11 per cent) were the
most prominent sectors in the sample. 110 In 2021, the Cooperatives Union of Kyrgyzstan
brought together around 250 cooperatives mainly involved in agricultural commodity services.
• In 2009, the Russian Federation had 1,500 agricultural credit cooperatives with
143,000 members; 183 credit unions with 431,000 members; 70 housing cooperatives with
20,000 members; 3,000 consumer cooperatives with 4.8 million members; and
40,000 horticultural cooperatives with 27 million members. 111 In 2020, there were more than
50,000 cooperatives in the country. 112
• Switzerland has 8,559 cooperatives, accounting for 5.3 per cent of employment and over 15 per
cent of the Swiss gross domestic product. 113 In French-speaking Switzerland, the SSE employs
5,000 workers and involves more than 12,000 volunteers. In the Canton of Geneva, around
17,000 SSE units provide goods and services to more than 400,000 beneficiaries and clients. 114
• Turkey has more than 53,000 cooperatives, around 105,000 associations and close to
4,800 foundations, involving 16 million individual members. 115 There are around 1,776 social
enterprises, consisting of commercial enterprises run by community foundations, women’s
cooperatives and public-benefit associations. 116
58. The SSE features in the institutions across Europe. In 2019, the Conference of Presidents of the
European Parliament approved the re-establishment of the Social Economy Intergroup for 2019–
24, with the support of over 80 members of the European Parliament. 117 At the European Union
level, initiatives have been taken to support the development of European cooperatives, mutuals,
associations and foundations. 118 In 2015, a monitoring committee was established to oversee the
implementation of the road map towards a more comprehensive ecosystem for social economy
108
Charles Buxton, Mehrigiul Ablezova and Anara Moldosheva, “Development tool or civil society actor? Understanding social
enterprise in Kyrgyzstan”, INTRAC Praxis Series Paper No. 8, 2019.
Yury E. Blagov and Yulia N. Aray, “The emergence of social entrepreneurship in Russia”, Social Enterprise Journal 15, No. 2 (2019):
109
158–178.
110
Buxton, Ablezova and Moldosheva.
ILO, Cooperative Sector in Russia and the Implementation of the ILO Recommendation No. 193 in the Development of Different Russian
111
2020”, 2020.
114
Sophie Swaton, “L’économie sociale et solidaire en Suisse romande", REISO Revue d’information sociale, 2015.
115
Hüseyin Polat, Cooperatives as part of social economy in Turkey: Challenges of Agricultural Cooperatives (CIRIEC, 2016).
Duygu Uygur and Barbara Franchini, Social enterprises and their ecosystems in Europe. Country fiche: Turkey (European Union,
116
2019).
117
Social Economy Europe, “European Parliament Social Economy Intergroup.”
The only draft regulation that came to fruition was on European cooperatives, with the adoption of the “Statute for a European
118
Cooperative Society” in 2003, which permits the formation of a European cooperative society by citizens from more than one
Member State.
Decent work and the social and solidarity economy
Chapter 1. The SSE around the world 27
enterprises agreement contained in the Luxembourg Declaration adopted in the same year. 119 In
2017, representatives of eight governments adopted the Ljubljana Declaration on scaling up
social economy enterprises in South-East Europe. The European Commission has established an
Expert Group on Social Economy and Social Enterprises (GECES) to advise it on policy initiatives
related to the SSE during the period 2018–24. Furthermore, building on the Social Business
Initiative introduced in 2011 and the Start-up and Scale-up Initiative introduced in 2016, the
European Commission launched an Action Plan for the Social Economy in 2021. 120
59. The European Union has a number of regional organizations and networks representing the
SSE and supporting its development. In 2015, the Employment, Social Policy, Health and
Consumer Affairs Council adopted conclusions on promoting the social economy, recognizing the
SSE as a key driver of economic and social development in Europe. The European Economic and
Social Committee includes a Diversity Europe Group 121 that is active in the promotion of the SSE
and publishes its opinions. 122 Other regional organizations and networks that promote the SSE
include: Social Economy Europe; the Intercontinental Network for the Promotion of Social
Solidarity Economy in Europe (RIPESS–Europe); the Euclid Network; and the Diesis Network. There
are also research institutes such as the European Research Institute on Cooperative and Social
Enterprises (EURICSE). The EMES International Research Network and the International Centre of
Research and Information on the Public, Social and Cooperative Economy (CIRIEC) originated in
Europe but are now major global research networks.
119
Luxembourg Declaration - A roadmap towards a more comprehensive ecosystem for social economy enterprises.
120
European Commission, Building an economy that works for people: an action plan for the social economy, 2021.
121
European Economic and Social Committee, “Diversity Europe Group.”
Latest updated on the actions conducted by the Committee can be found in: European Economic and Social Committee, Period
122
• The International Cooperative and Mutual Insurance Federation (ICMIF) reports that the
premium income of the global mutual and cooperative insurance sector grew by 30 per cent
between 2007 and 2017. In the same period, the global market share held by mutual and
cooperative insurers rose from 24 per cent in 2007 to 26.7 per cent in 2017. 123
• In 2017, the world had an estimated 2.9 million cooperatives, with a total membership of 1.2
billion individuals. 124 Based on data from 156 countries, an estimated 279.4 million people are
employed in or within the scope of cooperatives, equivalent to 9.5 per cent of the world’s
employed population. 125 Out of this total estimate, 27.2 million work in cooperatives, including
16 million cooperative employees, 11.1 million of which are also members. Employment within
the scope of cooperatives, mainly self-employed producer-members, concerns 252.2 million
people, the vast majority being in agriculture.
• The World Council of Credit Unions reports a significant growth of its affiliated savings and
credit cooperatives between 2005 and 2019. The number of credit union members as a share
of the general population increased from 6.6 to 9.6 per cent during that period, while the assets
held by credit unions – whose members mostly belong to the low-income category – grew from
US$0.9 trillion to US$2.6 trillion. In 2020, there were more than 375 million members of credit
unions in 118 countries. Between 2019 and 2020, credit union membership grew by 29 per
cent. 126
• In 2019, the largest 300 cooperatives and mutuals reported a total turnover of US$2.2 billion. 127
• In 2014, the average prevalence rate of broad social entrepreneurial activity among nascent
enterprises was 3.2 per cent across 38 countries, ranging widely from 0.3 per cent in the
Republic of Korea to 10.1 per cent in Peru. 128
123
ICMIF, Global Mutual Market Share 10, 2019.
International Organisation of Industrial and Service Cooperatives (CICOPA), Cooperatives and Employment. Second Global Report,
124
2017.
125
CICOPA.
126
World Council of Credit Unions, 2019 Statistical Report, 2020.
127
EURICSE and ICA, World Cooperative Monitor, 2021.
128
The Global Entrepreneurship Monitor provides data from 31 countries on social enterprises based on a narrow definition of
social enterprises as market producers prioritizing social and environmental value over financial value. See Niels Bosma et al.,
Global Entrepreneurship Monitor: Special Topic Report – Social Entrepreneurship, 2015.
30 Chapter 2.
Decent work and the social and solidarity economy
Contributions to decent work and sustainable development
financial services. Indirectly, the SSE can also generate jobs as a result of the spillover effect. SSE
units can contribute to the achievement of Goal 2 (zero hunger), Goal 8 (decent work and
economic growth) and Goal 9 (industry, innovation and infrastructure) of the 2030 Agenda, to the
extent that they support employment generation – including for young people – and
entrepreneurship development, and increase productivity. 129
63. SSE units operate across various stages of supply chains. In the cotton-marketing system of
Burkina Faso, 325,000 producers are organized into 12,000 cotton producers’ groups collecting
and weighing the cotton harvest of their members on behalf of three large, public–private cotton-
processing companies. They are represented in the Inter-professional Cotton Association of
Burkina Faso (AICB) through the National Cotton Farmers’ Union (UNPCB). 130 In recent years,
producer and consumer cooperatives have been developing direct cooperative-to-cooperative
trade channels. If expanded upon, such initiatives can provide a fair and effective model for trade.
For example, products of Kenyan coffee producer cooperatives are being sold in Danish consumer
cooperative stores. Organic pineapples produced by Togolese cooperatives are featured in Italian
consumer cooperative stores.
64. Despite the SSE’s contributions in supply chains, key challenges remain. SSE units may be
concentrated in segments of the supply chain with low productivity and high risk. They may have
limited resources and capacities, which makes it difficult for them to compete in the supply chains
and enter higher-value markets. To ensure their long-term sustainability, SSE units need to
diversify their activities and upgrade their processes and products. They also need to invest in
training and in improving skills, know-how, processes and equipment. 131 A recent ILO study
shows that, in Cameroon, the largest obstacles to the operation of SSE units were: limited access
to financial services (76 per cent); high input costs (75 per cent); and limited access to
infrastructure (52 per cent). The main obstacle to the development of SSE units was a lack of
information regarding support programmes and the high cost of advisory services. 132
65. SSE units may use different strategies for scaling up to overcome productivity challenges.
Horizontal growth typically involves setting up networks, franchises or subsidiaries. It can draw on
support from local governments, research institutions, cooperative banks and SSE training
organizations. Vertical growth involves setting up secondary and tertiary structures to provide
services, from education and financing to policy advocacy. Transversal growth entails infusing SSE
values and principles into the local economy. The Emilia Romagna region in Italy and the Basque
country in Spain have replicated and adapted good SSE initiatives, contributing to the overall
social and economic well-being of their regions. 133 A crucial challenge for SSE growth is to ensure
continued proximity and responsiveness to the needs of members, workers, users and
communities, in alignment with SSE values and principles.
66. SSE units are particularly effective in promoting job and income opportunities and in
reducing inequalities in rural areas. This was recognized in the conclusions on promoting rural
employment for poverty reduction, adopted by International Labour Conference at its 97th
129
The ILO’s Employment Policy (Supplementary Provisions) Recommendation, 1984 (No. 169), mentions the role that workers’
cooperatives can play in the provision of employment of youth and disadvantaged groups and persons (Para. 16(i)). It also refers
to the need to take account of the importance of small undertakings such as cooperatives and associations in the provision of
employment opportunities, especially for workers who have particular difficulties (Para. 30).
130
Burkinabe Textile Fibre Company (SOFITEX).
131
ILO, “Value Chain Development Briefing Paper 2: The Role of Cooperatives and Business Associations in Value Chain
Development”, 2012.
132
ILO and MINP MEESA.
133
UNRISD, “Measuring the Scale and Impact of Social and Solidarity Economy”, 2018.
Decent work and the social and solidarity economy
Chapter 2. Contributions to decent work and sustainable development 31
Session (2008). 134 The Rural Workers’ Organisations Recommendation, 1975 (No. 149), also refers
to the role of cooperatives in enabling rural workers’ organizations to respond directly to
membership needs while fostering their interdependence through economic self-reliance. SSE
units can contribute towards a productive transformation of rural economies and promote decent
work across rural sectors, including in the agri-food sector that remains the backbone of many
rural economies. Strong, independent and effective organizations of rural employers and
workers, cooperatives and producer associations can enable rural communities to influence and
enhance their economic and social development and livelihoods. These organizations can ensure
that the voices of those living in rural areas are heard, including in the development and
implementation of laws, policies and strategies that have an impact on their work and lives.
67. SSE-related social finance institutions worldwide contribute indirectly to job creation by
providing the capital required to establish an enterprise or acquire essential means of
production. These include rotating savings and credit associations, which exist in many parts of
the world, 135 credit unions, village banks and cooperative banks. In 2021, credit unions employed
more than 315,000 people in the United States of America, with a 2.5 per cent increase on average
between 2016 and 2021. 136 The Teachers Savings and Loan Society Limited is a financial
cooperative that provides savings and loans services to 47,000 teachers and employees of the
Department of Education in Papua New Guinea, with 16 branches covering all provinces of the
country. 137 Furthermore, SSE units in the financial sector have embraced digital technologies to
reach and serve their members more effectively. An example is the KAYA payment platform
adopted by financial cooperatives in the Philippines. 138
68. Access to finance is a crucial challenge for developing the SSE. Certain features of SSE units
facilitate access to various forms of finance. These include, for instance, donations, grants,
affordable loans from the government, complementary currency schemes, collection of capital
from their members and other stakeholders and the reinvestment of surplus. 139 Access to the
traditional banking system, however, is often highly constrained. This is due not only to the types
of constraints commonly encountered by small and medium-sized enterprises (SMEs) but also to
the competitive disadvantage that SSE units may be at vis-à-vis other institutional units. For
example, small-scale SSE units may lack credit history, conventional forms of collateral and the
administrative know-how to navigate complicated application procedures. 140 SSE governance
structures, which are designed to meet the needs of their stakeholders (in other words, workers,
clients and volunteers) rather than to remunerate investors, often put them at a competitive
disadvantage vis-à-vis profit-maximizing enterprises in their ability to access credit or capital via
the traditional banking system. 141 The principle of the prohibition or limitation of profit
distribution can make it harder for them to access financing from conventional lenders.
Cooperatives, for instance, report that their ownership structure makes it more difficult to benefit
134
ILO, Report of the Committee on Rural Employment, Record of Proceedings, International Labour Conference, 97th Session, 2008
(Record No. 15).
135
For example, chama in Swahili-speaking East Africa, tontines in West Africa, tandas in South America, kameti in Pakistan,
partnerhand in the West Indies, cundinas in Mexico, ayuuto in Somalia, hui in China, gam’eya in the Middle East, kye in the Republic
of Korea, tanomoshiko in Japan and pandeiros in Brazil.
136
IBISWorld, “Credit Unions in the US - Employment Statistics 2002–2027”, 23 October 2021.
137
ILO, “Providing savings and loans services to teachers since 1972”, Spotlight Interviews with Cooperators, 2016.
138
National Association of Training Centers for Cooperatives of the Philippines, “Payment Services”.
Caitlin McMullin, Financial Mechanisms for Innovative Social and Solidarity Economy Ecosystems: The Case of Quebec (ILO, 2021).
139
140
Utting.
141
McMullin.
32 Chapter 2.
Decent work and the social and solidarity economy
Contributions to decent work and sustainable development
from equity investments. 142 There are also concerns that access to conventional mechanisms
might undermine SSE values and practices related, for example, to democratic governance and
the profit distribution constraint. In a context where SSE units in various sectors are expanding
and diversifying their activities, and their capital requirements look set to increase, access to a
broader range of financial instruments will likely be necessary.
69. SSE units provide a wide range of services to their members and communities that improve
incomes and livelihoods. Street vendors’ associations, fair trade organizations and agricultural
marketing and supply cooperatives are key actors in facilitating access to markets in many
countries. An estimated 1.9 million farmers and workers in 71 countries are members of 1,880
Fairtrade certified producer organizations. 143 In Ecuador, the Foundation of Rural Community
Cheese Makers (Funconquerucom) brings together more than 30 community cheese
manufacturing factories in four provinces. It markets 3 tons of cheese and butter produced daily
by 1,200 small farmers through neighbourhood stores, restaurants and supermarkets around the
country. It also provides training to farmers on technical, sanitary and managerial aspects of
cheese making. 144 In Mexico, the green market in Morelos holds a monthly event offering space
to 200 producers selling sustainably produced goods to consumers who care about the
environment. 145 In South Africa, the Bela Bela Communal Property Association creates
employment and provides skills development and training to upskill its community members. 146
In Spain, SSE units integrate workers who face difficulties in accessing employment, such as
persons over 55, persons with disabilities and those at risk of social exclusion, and offer higher
levels of job stability than some other institutional units. 147 In the United States, Project HOME is
a community organization based in Philadelphia that provides nationally recognized programmes
and employment opportunities to persons experiencing chronic homelessness. Social Enterprise
is a group of small businesses that acts as a supportive and skill-building environment for
residents of Project HOME through a handmade gifting line and online bookstore. 148
70. SSE units can play a pivotal role in enhancing the productivity and competitiveness of
enterprises by generating economies of scale. This applies to shared-service cooperatives, also
known as entrepreneurs’ cooperatives or cooperative consortia, that allow small enterprises to
achieve productivity gains through the joint organization of essential services such as input
supply, transport, processing and marketing, and to reduce fixed costs and increase turnover.
Collective services provided by SSE units can be essential to raise the productivity and
competitiveness of small-scale producers and SMEs. 149 Entrepreneurs’ cooperatives have been
effective over the course of nearly 150 years in several Western European countries. In recent
years, professionals and public bodies in North America have also made use of them. In Italy,
Copernico is a consortium of six social cooperatives that provides children, adolescents, families,
immigrants and asylum seekers with educational and social welfare services, and marginalized
groups with job opportunities. It employs more than 200 people, 76 per cent of whom are women
142
European Commission, Building an economy that works for people: an action plan for the social economy, 2021.
143
Fairtrade International. The Future is Fair. Annual Report 2020-2021, 2021.
144
FUNCONQUERUCOM - Fundación Consorcio de Queseras Rurales Comunitarias.
145
Mercado Verde Morelos.
146
Bela Bela Communal Property Association, “About Bela Bela CPA.”
147
Spanish Social Economy Employers’ Confederation (CEPES), Análisis del impacto socioeconómico de los valores y principios de la
economía social en España, 2019.
148
Project Home.
149
ILO, Decent work and productivity, GB.341/POL/2, 2021.
Decent work and the social and solidarity economy
Chapter 2. Contributions to decent work and sustainable development 33
and 18 per cent belong to disadvantaged groups. 150 Shared-service cooperatives are not yet
prominent in Africa, Asia, Eastern Europe or Latin America. 151
71. The SSE can also create jobs through worker-owned enterprises. These are enterprises that
are majority or exclusively owned and controlled by workers. Any type of business can be worker
owned, from services and retail to education and manufacturing. 152 Worker cooperatives are
worker-owned enterprises that are run and managed by and for the workers who own the capital,
vote as equal members on matters related to running the business and have the right to stand in
for election to the board of directors. In 2020, the General Confederation of Worker Cooperatives
(CGSCOP) in France reported that it had 3,611 member cooperatives, with 67,200 workers, largely
in services, construction and industry. Jobs created by worker cooperatives grew by 6 per cent in
the country in the same year. 153 In many countries where worker cooperatives operate, legal
provisions governing their operations may not always be in place. In Japan, worker cooperatives
had existed for 25 years before the Workers’ Cooperative Act was adopted in 2020. 154 In the
United States, Cooperative Home Care Associates, a worker-owned cooperative home care service
provider in New York City employs more than 2,000 members of staff and provides free training
in home care services for over 600 low-income and unemployed women annually. While
commercial care providers in the city allocate around 60 per cent of their revenue as direct wages
or benefits to workers, Cooperative Home Care Associates assigns 82 per cent of its revenue to its
workers. 155 Such worker-owned enterprises can be an effective strategy for generating
employment and supporting livelihoods, especially among informal workers.
72. Enterprise restructuring through transition to worker ownership has been implemented to
help preserve jobs. In some cases, such enterprise restructuring may be due to enterprise failure.
In other cases, it may be due to the retirement of owners, especially where there is no clear plan
for the future of the enterprise. 156 Employees who are already familiar with the workings of
enterprises that might face closures in the absence of new proprietors can provide a succession
path when the right policies, financing, training and legal advisory schemes are in place.
Successful examples of transition to worker ownership exist in Argentina, Brazil, Canada, Italy,
Finland, France, Portugal, Spain, the United Kingdom and the United States, including Puerto Rico.
There are also numerous unsuccessful examples of such transition due to a lack of internal
capacities or challenges in the environment that may prove overwhelming. Not many countries
have policies and financing schemes in place that would allow for enterprise restructuring
through transition to worker ownership. Having the pertinent regulation and financing
mechanisms for transition to worker ownership could facilitate the transition process for
businesses facing challenges to their continuity in times of crisis.
150
ILO, “Italian social cooperatives working together for the benefit of the communities”, Spotlight Interviews with Cooperators,
4 April 2017.
151
Nicole Göler von Ravensburg, Economic and other benefits of the entrepreneurs’ cooperative as a specific form of enterprise cluster
(ILO, 2011).
152
University of Wisconsin Center for Cooperatives, “What is a worker cooperative?”
153
CGSCOP, “Chiffres clés”.
154
Japan Workers’ Co-operative Union.
155
Carlo Borzaga, Gianluca Salvatori and Riccardo Bodini, Social and Solidarity Economy and the Future of Work (International
Training Centre of the ILO, 2017).
156
Simel Esim and Waltteri Katajamaki, “Rediscovering worker cooperatives in a changing world of work”, IUSLabour 1, 2017.
34 Chapter 2.
Decent work and the social and solidarity economy
Contributions to decent work and sustainable development
157
ILO, Flagship Report: World Social Protection Report 2020-22: Social protection at the crossroads – In pursuit of a better future, 2021.
ILO, Resolution and conclusions concerning the second recurrent discussion on social protection (social security), International
158
social protection systems that are adapted to the developments in the world of work” and that providing such protection to
workers in all types of employment was a key priority of Member States.
160
ILO and FAO, Extending Social Protection to Rural Populations: Perspectives for a Common FAO and ILO Approach, 2021.
161
ILO, Extending social security to workers in the informal economy: Lessons from international experiences, 2021.
Fabio Durán Valverde et al, Innovations in Extending Social Insurance Coverage to Independent Workers: Experiences from Brazil,
162
Cape Verde, Colombia, Costa Rica, Ecuador, Philippines, France and Uruguay, ILO Extension of Social Security Paper No. 42, 2013.
163
ILO, Extending social health protection: Accelerating progress towards Universal Health Coverage in Asia and the Pacific, 2021.
Decent work and the social and solidarity economy
Chapter 2. Contributions to decent work and sustainable development 35
selection. Examples of successful integration exist in different settings. For instance, in Belgium,
compulsory social health insurance is provided through mutuals. In France, the national health
insurance agency delegates front office administrative functions to mutuals for specific categories
of workers and sectors of activity. 164 In Senegal, a subsidized scheme to achieve universal health
coverage is implemented through mutuals and the newly created social security regime for
independent workers. 165
76. SSE units also play an essential role in providing health, social and housing services that are
part of the national social protection system in some countries. In many countries, the social
protection system contracts service providers, especially in the area of social health protection,
childcare, long-term care and housing. In such contexts, cooperatives and associations add value
to the provision of such services as part of social protection systems. The International Health
Cooperative Organization estimates that some 100 million households worldwide access
healthcare through 3,300 health cooperatives in 76 countries. Many are integrated as providers
of national social health protection systems. 166
77. With the increasing integration of long-term care within the scope of social protection
systems, 167 SSE units have a potentially growing contribution as service providers. SSE units
address care needs for diverse populations such as disadvantaged young people, persons with
disabilities, older people and children. They are often multipurpose, reflecting the beneficiaries’
diverse care needs. They also involve multiple stakeholders, including care providers,
beneficiaries, governments and community agents. 168 In Italy, 85 per cent of care services for
children, the elderly and vulnerable persons in Bologna are provided by social cooperatives, which
are co-owned by the providers and receivers of care. 169 SSE units that address long-term care and
senior housing needs exist in China (Hong Kong), Japan, the Republic of Korea and Singapore. 170
In Spain, the SSE represents 43.5 per cent of the total supply of care services, which increases to
59.3 per cent in social services without accommodation. 171 In the United Kingdom, during the
COVID-19 pandemic, over 30 per cent of all National Health Service community nursing and other
services were provided by social enterprises. 172
78. SSE units can provide affordable and adequate housing and act in synergy with social
protection systems to prevent homelessness and inadequate housing. Social protection
systems directly address some of the risk factors that drive homelessness and inadequate
housing. SSE units can reduce poverty and facilitate access to adequate housing, social assistance
164
Émilie Sauvignet, “Le financement du système de santé en France: Rôle et organisation de l’assurance maladie obligatoire”,
Discussion Paper No. 1 (World Health Organization, 2005).
165
ILO, Revue globale et analyse du système national de Protection sociale : Revue générale du système de Protection sociale au Sénégal
et appui à la mise en œuvre de la Stratégie nationale de Protection sociale, 2021.
166
UN General Assembly, Cooperatives in social development: Report of the Secretary-General, A/74/206, 2019.
In June 2021, the Conference recalled that Members should “invest in the care economy to facilitate access to affordable and
167
quality childcare and long-term care services as an integral part of social protection systems”. ILO, Resolution and conclusions
concerning the second recurrent discussion on social protection (social security), 2021.
168
Lenore Matthew et al., Providing Care through Cooperatives 1: Survey and Interview Findings (ILO, 2016).
169
Open Learn, “How is Italy reinventing the co-op?”, 6 February
170
Lenore Matthew, Providing Care through Cooperatives 2: Literature Review and Case Studies (ILO, 2017).
171
CEPES, 2019.
172
UN Economic Commission for Europe, Women’s economic empowerment and the care economy in the ECE region: The impact of
economic and social policies during the COVID-19 response and recovery, UNECE Policy brief on Gender No. 1, 2020.
36 Chapter 2.
Decent work and the social and solidarity economy
Contributions to decent work and sustainable development
and housing benefits. 173 Community-based building associations in rural areas and housing
cooperatives in urban areas are among SSE units that help low-income populations access
affordable housing. 174 In Egypt, one third of all households are affiliated to one of 2,320 housing
cooperatives that have built half a million dwelling units. 175 In Mexico, ÉCHALE is a social
enterprise that offers housing solutions and contributes to the integral development of
communities. 176 In the Republic of Korea, the 177 housing welfare self-sufficiency enterprises that
initially emerged from an initiative led by inhabitants of poor areas are now creating jobs through
cooperatives while improving housing. 177 In South Africa, Hustlenomics, an impact-driven social
enterprise that builds quality and durable homes through an innovative financing and ownership
model, provides skills training and employment for local women and young people. 178
Rights at work
79. The fundamental principles and rights at work and most international labour standards
apply to all workers. With regard to rights at work, SSE units can significantly contribute to the
achievement of Goal 8 (decent work and economic growth) and Goal 16 (peace, justice and strong
institutions) of the 2030 Agenda, notably by promoting, advancing and applying international
labour standards. As stated in the ILO Declaration on Fundamentals Principles and Rights at Work,
adopted in 1998, all Member States have an obligation to respect, promote and realize the
fundamental principles and rights at work even if they have not ratified the related instruments.
In particular, all employers and workers have the right to freedom of association and collective
bargaining for furthering and defending their interests, as provided for in the Freedom of
Association and Protection of the Right to Organise Convention, 1948 (No. 87), and the Right to
Organise and Collective Bargaining Convention, 1949 (No. 98). This includes those employers and
workers that are regulated by SSE policies and legislation. SSE units are required to comply with
international labour standards and national labour legislation in respect of their employment
relationships, as is the case for other employers. 179 They are also required to observe safe and
healthy working conditions. 180 They should comply with relevant international and national
occupational safety and health (OSH) legislation and take into account guidelines, including in
their employer–worker relationships and their civil and commercial relations with third parties.
SSE units are subject to labour inspection as it relates to the fundamental principles and rights at
work and OSH compliance in the workplace. National legislation also regulates employment
relations in worker-owned enterprises such as worker cooperatives. In Spain, for instance, the
Cooperatives Act of 1999 specifies that OSH regulations apply to workplaces and to worker-
members. 181
173
ILO, ”Social Protection Systems for All to Prevent Homelessness and Facilitate Access to Adequate Housing”, ILO brief: Social
Protection Spotlight, 2020.
174
The ILO’s Workers’ Housing Recommendation, 1961 (No. 115), recognizes SSE units such as house-building cooperatives,
cooperative and similar non-profit housing societies and other housing associations for their contributions to workers’ housing.
175
Co-operative Housing International, “About Egypt.”
176
ÉCHALE.
177
Fonteneau and Pollet, The Contribution of Social and Solidarity Economy and Social Finance to the Future of Work (ILO, 2019).
178
Hustlenomics.
ILO, Giving globalization a human face: General Survey on the fundamental Conventions concerning rights at work in light of the ILO
179
Declaration on Social Justice for a Fair Globalization, 2008, Report of the Committee of Experts on the Application of Conventions
and Recommendations, ILC.101/III/1B, 2012, para. 53.
180
Occupational Safety and Health Convention, 1981 (No. 155).
181
Government of Spain, Act No. 27/1999 of 16 July on Cooperatives.
Decent work and the social and solidarity economy
Chapter 2. Contributions to decent work and sustainable development 37
80. Some international labour standards explicitly refer to the SSE or organizational forms that
fall under it. A list of international labour standards that specifically refer to the SSE or SSE units
is provided in the appendix. Although the ILO does not have a dedicated standard on the SSE,
cooperatives are the focus of the Promotion of Cooperatives Recommendation, 2002 (No. 193),
which replaced the Co-operatives (Developing Countries) Recommendation, 1966 (No. 127). 182
Recommendation No. 193 calls for national policies to “promote the ILO fundamental labour
standards and the ILO Declaration on Fundamental Principles and Rights at Work, for all workers
in cooperatives without distinction whatsoever.” Since the adoption of Recommendation No. 193,
around 117 countries have drawn on its guidance in revising their cooperative policies and
legislation. 183
81. SSE units can promote international labour standards in their interactions with their
members and other third parties. They can play an active role in promoting the effective
implementation of those standards, by familiarizing their members with such instruments and
advocating for their application. In the case of binding Conventions, they can advocate for
ratification and application at the national level and provide information and support to their
members to promote compliance. For example, since the adoption of the ILO’s Indigenous and
Tribal Peoples Convention, 1989 (No. 169), ratified by 24 countries to date, the promotion of the
SSE has been included as an objective in national plans for the integration of indigenous peoples
and SSE organizations have participated in the deliberations of national indigenous people’s
committees. Domestic workers’ self-help organizations, associations and cooperatives can
advocate for the ratification of the ILO’s Domestic Workers Convention, 2011 (No. 189). In Trinidad
and Tobago, the National Union of Domestic Employees and its Service Workers Centre
Cooperative have been jointly advocating for the development and adoption of national
legislation to protect the labour rights of domestic workers and have been working with other
domestic workers’ organizations in the Caribbean to promote the ratification and implementation
of Convention No. 189. 184
82. SSE units promote compliance with the fundamental principles and rights at work among
their members, engage with their communities and undertake joint initiatives with other
community actors to advance the fundamental principles and rights at work. SSE units can
help tackle workers’ rights deficits relating to freedom of association and collective bargaining,
forced labour, child labour and discrimination in their operations, in members’ and users’
operations and across supply chains. Working with the social partners, SSE units can support
informal economy workers in improving their working conditions and increasing their income.
83. On forced labour, SSE units could conduct information campaigns on labour rights where
there is a high incidence of labour migration. They could also provide services to victims of
forced labour. For example, they could support former victims of forced labour in gaining access
income-generating activities. Co-op UK, a retail cooperative chain in the United Kingdom, has put
policies in place that are enforced throughout its supply chains to ensure that the products it sells
are free of forced labour. It also provides psycho-social services and skills training for survivors of
forced labour to help them rebuild their lives. 185
182
Recommendation No. 127 was abrogated by a decision of the Standards Review Mechanism in 2016.
183
A total of 108 countries drew on Recommendation No. 193 in the revision of their legislation on cooperatives between 2002
and 2013, with a further nine (Cuba, Finland, Guyana, Israel, Kazakhstan, Kyrgyzstan, Madagascar, Myanmar and Nicaragua) doing
so since 2013.
184
ILO, Advancing domestic workers’ rights through cooperatives in Trinidad and Tobago, 2018.
185
Co-op UK, The Co-op and tackling slavery, 2017.
38 Chapter 2.
Decent work and the social and solidarity economy
Contributions to decent work and sustainable development
84. Participation in the SSE can help reduce reliance on child labour in agriculture by limiting
income volatility and improving farm livelihoods. SSE units can also advance the prevention
and elimination of child labour by supporting children’s education and the transition from school
to work and participation in child labour monitoring committees. In Rwanda, the rate of child
labour among farm households belonging to agricultural cooperatives is about one third lower
than that among other farm households. 186
85. The question of job quality and decent work deficits in SSE units cannot go unattended. If
they are not considered to be in an employment relationship, 187 workers holding jobs in SSE units
may risk being deprived of the protection to which they are entitled, including with regard to the
fundamental principles and rights at work, adequate OSH conditions, employment status,
working hours, remuneration and access to social protection. Recommendation No. 193 specifies
that national policies should “ensure that cooperatives are not set up for, or used for, non-
compliance with labour law or used to establish disguised employment relationships, and combat
pseudo cooperatives violating workers’ rights, by ensuring that labour legislation is applied in all
enterprises.” The role of labour inspection is critical to ensuring compliance. In its 2010 General
Survey concerning employment instruments, the Committee of Experts on the Application of
Conventions and Recommendations noted the importance of ensuring the application of labour
laws so as to avoid the emergence of “pseudo cooperatives”, which are only intended to gain
access to the benefits related to the status of cooperatives, such as tax advantages or social
security benefits, while avoiding the application of labour legislation. 188
86. Worker protection measures are necessary, especially in worker-owned enterprises, with
respect to workers who are also members. In some countries, for instance Portugal, Spain and
Uruguay, the law stipulates that the relationship between a workers’ cooperative and its worker-
members is to be considered an organizational relationship, exempt in principle from labour
law. 189 An ILO meeting of experts held in 1995 concluded that member-owner-workers may
decide to refrain from claiming certain labour law privileges to strengthen the cooperative’s
financial viability. 190 However, increasingly, a third path is being considered in which the
employment relationship in worker cooperatives is to be qualified as “cooperative work”. 191
Specific measures for workers’ protection are put in place under such a relationship, for instance,
the extension of social security to the worker-members of a cooperative.
Gender equality
87. Although circumstances may vary according to context, within the SSE there is a growing
interest in gender issues, greater recognition of the value of women in leadership roles, and
an increase in the number of SSE units owned by women. In mobilizing the SSE to further
gender equality, including progress towards Goal 5 (gender equality) of the 2030 Agenda, two
areas of focus emerge: the strengthened participation of women in SSE units, including in
186
ILO, Ending child labour by 2025: A review of policies and programmes, 2018.
187
As defined in the Employment Relationship Recommendation, 2006 (No. 198).
ILO, General Survey concerning employment instruments in light of the ILO Declaration on Social Justice for a Fair Globalization, 2008,
188
Report of the Committee of Experts on the Application of Conventions and Recommendations, ILC.99/III/1B, 2010, para. 465.
189
Section 80(1) of Spanish Act No. 27/1999 of 16 July on Cooperatives and section 99 of the Uruguayan General Act on
Cooperatives No. 18407/2008.
190
ILO, Meeting of Experts on Cooperative Law: Final Report, 1995.
Deolinda Meira, André Almeida Martins and Tiago Pimenta Fernandes, “Regime jurídico das cooperativas de trabalho em
191
Portugal: Estado da arte e linhas de reforma”, CIRIEC – España. Revista jurídica de economía social y cooperativa 30 (2017).
Decent work and the social and solidarity economy
Chapter 2. Contributions to decent work and sustainable development 39
leadership positions; and the development of SSE units in undervalued economic sectors or
professions with a stronger participation of women (for example, in the care economy). In 2019,
in the cooperative and mutual insurance sector, a quarter of the leaders of ICMIF member
organizations and 20 per cent of ICMIF board members were women. These levels of women’s
representation in leadership positions were higher than elsewhere in the insurance industry,
where only one in ten chief executive officers were women. 192 In Spain, gender wage gaps are
narrower in SSE units than in some other institutional units, which can be attributed to greater
diversity at the management level in the SSE. 193 In the United Kingdom, 47 per cent of social
enterprises were led by women in 2021 and 83 per cent of the leadership teams of social
enterprises included a woman. 194
88. The SSE offers observable benefits in respect of achieving gender equality. The SSE can offer
multiple benefits in terms of providing affordable and accessible services for women in
housing and finance and a range of care services. Women can advance their situation by
negotiating with public authorities through SSE units. The democratic and participatory
governance of SSE units allows women the opportunity to engage in decision-making and power-
sharing. Women who are engaged in SSE units may be better positioned to address personal and
communal needs such as freedom from discrimination, violence and harassment, including sex-
based violence and harassment.
89. SSE units established by and for women help overcome social and cultural constraints,
which might otherwise limit women’s participation in the workforce. In some countries,
women-only cooperatives are active in food processing, crafts and care services, providing work
opportunities for their members and creating a social outlet. In India, SEWA, a national union of
1.8 million informal women workers in 14 Indian states, serves as an incubator for nascent
collective social enterprises in the artisanry, dairy, agriculture, domestic work, construction and
recycling sectors, linking them to other collective enterprises that provide health, childcare,
insurance and financial services. An estimated 80 per cent of SEWA-supported cooperatives have
achieved economic viability. 195
90. Although SSE units may be based on values of equality and equity, they may be constrained
by legal provisions, social norms and historical inequalities. Women are often disadvantaged
in terms of assets, education and training which can impede their access to the resources and
markets needed to establish, expand or sustain an organization. 196 Even when women participate
in SSE units on an equal footing to men, they may find it difficult to participate in decision-making
bodies or to accede to leadership positions as prevailing horizontal and vertical gender divisions
of labour are often reproduced. 197 Women are also generally less connected to vertical SSE
structures and other support structures than men are. 198 Transitional measures such as
affirmative action can be used in such cases. Participatory gender auditing or gender-responsive
budgeting could be among other methods used by the SSE. Governments can support women’s
empowerment in the SSE by providing capacity-building programmes for women, including in
192
Swiss Re Institute, “Gender diversity in the re/insurance industry: for a sustainable future”, 11 February 2021.
193
CEPES, 2019.
194
Social Enterprise UK, “No Going Back – State of Social Enterprise Survey 2021”.
195
ILO, Advancing cooperation among women workers in the informal economy: The SEWA way, 2018.
UNTFSSE, Social and Solidarity Economy and the Challenge of Sustainable Development: A Position Paper by the United Nations Inter-
196
Social dialogue
91. In some countries, vertical structures of the SSE take part in social dialogue. SSE units,
particularly the larger ones and their federations, may participate in social dialogue as employers,
and even work on collective bargaining agreements with unions, as is the case in Switzerland. 200
In Niger, cooperatives work alongside employers’ and workers’ organizations in the National
Social Dialogue Committee (CNDS). In Senegal, the National Union of Traders and Manufacturers
of Senegal (UNACOIS) is a member of the country’s High Council for Social Dialogue. The South
African National Economic Development and Labour Council comprises community organizations
in addition to government and employers’ and workers’ organizations. The formal representation
of SSE units can also involve bipartite and tripartite-plus arrangements, with SSE units falling into
the category of ”other stakeholders”, as is the case in Mali’s Economic, Social and Cultural Council
(CESC).
92. Similarly, representatives of SSE units can take part in cross-border social dialogue
mechanisms, notably in regional integration communities. In the European social dialogue
platforms for the banking sector, the European Association of Co-operative Banks is one of three
representative employers’ organizations. In the insurance sector, the Association of Mutual
Insurers and Insurance Cooperatives in Europe is one of three recognized employers’ bodies. In
addition to working groups with employers’ and workers’ organizations, the European Economic
and Social Committee has a third group on diversity with representatives of SSE units including
charities, cooperatives, foundations, mutual societies and social enterprises. The Cross Border
Traders Association is a membership-based organization that represents and advocates for small-
scale cross-border traders. It works for the removal of trade barriers for its 40,000 members in
Southern and Eastern African countries and negotiates trade conditions on their behalf with the
secretariats of the Common Market for Eastern and Southern Africa and the Southern African
Development Community, as well as with national governments. 201
199
ILO, Mapping the Social and Solidarity Economy Landscape in Asia: Spotlight on Indonesia, ILO brief: Strengthening Social and
Solidarity Economy Policy in Asia, 2021.
200
Migros, Convention collective de travail (CCNT) du Groupe Migros, 2019–22.
201
Cross Border Traders Association of Zambia.
202
ILO, Work for a brighter future, Report of the Global Commission on the Future of Work, 2019.
Decent work and the social and solidarity economy
Chapter 2. Contributions to decent work and sustainable development 41
94. Vertical SSE structures of informal own-account workers provide those workers with voice
and representation at the local, national, regional and international levels, as described
below:
• At the local level, SSE units of artisans, taxi drivers, smallholder farmers or street vendors come
together in vertical structures. For example, in the United States, the New York City Network of
Worker Cooperatives provides services for worker cooperatives whose members are mostly
informal own-account workers. It advocates to secure public funding for worker cooperative
development and for the adoption of legislation for worker cooperatives at the city and state
levels. 203
• At the national level, vertical structures of the SSE include informal economy workers’ umbrella
organizations. The National Association of Street Vendors of India, a coalition of 373 trade
unions, cooperatives, associations and community-based organizations representing around
300,000 street vendors, played a pivotal role in drafting the National Policy on Urban Street
Vendors, which accorded legal status to street vendors. 204
• Also at the national level, in Argentina, the Confederation of Informal Economy Workers (CTEP)
is an umbrella organization of associations of garment workers, motorcycle couriers, street
vendors, artisans, small farmers, brick makers and workers in recovered enterprises. 205 It is
registered as a civil association which campaigns for the recognition of informal economy
actors by the Government and runs a mutual insurance scheme as well as educational
programmes for its members. 206
• At the regional level, vertical SSE structures advocate for their members with regional bodies
and create knowledge and learning platforms for them. HomeNet South Asia is a subregional
network of home-based worker organizations that helps build regional solidarity among home-
based workers and their representative organizations. 207
• At the international level, membership-based organizations of informal workers advocate for
their members’ concerns on issues that are of priority to them. StreetNet International is a
global organization of over 600,000 informal traders in more than 50 countries that aims to
strengthen the voices and visibility of its members to influence policies that are directly
affecting their lives. 208
95. SSE units help to scale up the activities of informal economy units through collective forms
of entrepreneurship, enhancing their bargaining position and facilitating the access of
workers to social protection. 209 Through the SSE, informal economy enterprises can improve
their economic viability and resilience, increase their productivity, realize cost savings through
shared services and boost their incomes through an increased level of production and the
diversification of product lines. By forming or joining SSE units, informal economy operators can
secure access to finance, information, inputs, technology, support services and markets. SSE units
can facilitate access to social security for their members by helping with registration, providing
203
New York City Network of Worker Cooperatives, “History and Mission”.
204
National Association of Street Vendors of India.
205
CTEP, “Nosotros”. The concept of “recovered” enterprises, or empresas recuperadas, is usually associated with Argentina
experience, but such enterprises exist in several African, Asian, European and North American countries as well.
206
ILO, Organizing Informal Economy Workers into Trade Unions: A trade union guide, 2019.
207
HomeNet South Asia.
208
StreetNet International.
209
Fonteneau and Pollet.
42 Chapter 2.
Decent work and the social and solidarity economy
Contributions to decent work and sustainable development
information about their members’ rights and entitlements and raising awareness. 210 When SSE
units are officially registered, they belong to the formal economy, while their workers may still
operate in the informal economy.
96. The impact of COVID-19 has been particularly severe on the world’s 2 billion informal
workers. Research conducted in mid-2021 on the impact of the pandemic on the livelihoods of
informal workers showed that most informal workers had not recovered the ability to work. Their
earnings still remained far below pre-pandemic levels. 211 In dealing with the effects of the public
health and economic crisis caused by the pandemic, women workers in the informal economy
have been even more disproportionately burdened with unpaid care work within households. 212
In South Asia, women home-based workers reported an inability to work due to lockdowns and
mobility issues, cancellations of orders and services, increases in the cost of raw materials and
seeds, and increased care responsibilities. In the face of the crisis, SSE units of informal workers
distributed relief measures and services, conducted awareness-raising on COVID-19 and provided
linkages with the health system for preventive care and treatment. In India, SSE units of women
informal economy workers have provided much-needed employment and business-related relief
to their members.
210
ILO, Extending social security to workers in the informal economy: Lessons from international experience, 2021.
Sarah Orleans Reed et al., The Crisis is Far from Over for Informal Workers — We Need an Inclusive Recovery for the Majority of the
211
World’s Workforce, COVID-19 Crisis and the Informal Economy: Policy Insights No. 8 (WIEGO, 2021).
212
ILO and WIEGO, Cooperatives meeting informal economy workers’ child care needs, 2018.
213
Co-operatives UK, Co-op economy 2021. A report on the UK’s co-operative sector, 2021.
Decent work and the social and solidarity economy
Chapter 2. Contributions to decent work and sustainable development 43
vulnerable situations. Many SSE units have transformed their products and services to meet
urgent local needs for protective equipment and social care. 214 The Mondragon Corporation in
Spain, comprised of around 100 cooperatives with over 80,000 employees, used its solidarity
reserve funds to support its members and temporarily redeployed workers between cooperatives
in the group to minimize the loss of jobs during the pandemic. 215
99. The active participation of vulnerable and marginalized people in SSE units contributes to
redressing entrenched poverty and inequalities. Marginalized population groups have formed
their own SSE units in host countries. Some SSE units, such as social cooperatives, have been set
up specifically to fight social exclusion, for instance in Italy. Others have added a social inclusion
element to their main function. Jordanian agricultural and multipurpose cooperatives have been
helping to obtain work permits for Syrian refugees, and have been conducting training and joint
projects with them. The Multicultural Health Brokers Cooperative is a worker cooperative in
Canada (Alberta) with 75 worker-members who are immigrants and former refugees. It supports
2,000 migrant and refugee families each year to access services, including maternal and infant
health outreach, early parenting and early childhood development support, intercultural childcare
services, multicultural family support for children with disabilities, and health and mental health
support for the most vulnerable populations. 216
100. SSE units exhibit robust resilience in the face of economic downturns and have the ability
to support their members and the wider community. 217 In the aftermath of the financial and
economic crisis of 2007–08, financial savings and credit cooperatives, cooperative banks and
credit unions have grown, kept credit flowing, especially to SMEs, and remained stable across
regions of the world. 218 Credit unions and cooperative banks increased their market share in the
aftermath of this crisis because they were less exposed to speculative transactions. 219 Stability
and the aversion to risk are built into the design of financial cooperatives. They generate surplus
as they need to, otherwise they would not be economically viable. They put the surplus into
reserves, which keeps them financially strong. At the same time, they return it back to their
members, through annual dividends or pricing their products reasonably. They also motivate
managers differently by simply paying them the going rate, instead of rewarding them with
shares. 220 The role that the SSE plays in immediate crisis relief is being acknowledged by
governments at the local and national levels, especially in the provision of social services. Despite
their relevance to building crisis resilience, SSE units have not been systematically integrated into
medium to long-term government strategies for crisis resilience.
101. The SSE has also demonstrated its relevance and capacity and agency in the aftermath of
natural disasters, as a means for communities to cope with the destruction and contribute
to recovery and reconstruction. The ICMIF and the UN Office for Disaster Risk Reduction have
identified seven practical mechanisms for supporting disaster risk reduction and resilience
through cooperative and mutual insurance providers in the context of the Sendai Framework for
ILO, General Observation of the Committee of Experts on the Application of Conventions and Recommendations adopted in 2020 and
214
published at the 109th Session (2021) of the Conference, on the Employment Policy Convention, 1964 (No. 122).
215
UN General Assembly, Cooperatives in social development: Report of the Secretary-General, A/76/209 (2021).
216
Multicultural Health Brokers Cooperative.
217
Adrien Billiet et al., “The resilience of the cooperative model: How do cooperatives deal with the COVID-19 crisis?”, Briefings
Entrepreneurial Finance 30, Issue 2 (2021): 99–108.
218
Johnston Birchall, Resilience in a downturn: The power of financial cooperatives (ILO, 2013).
219
Johnston Birchall and Lou Hammond Ketilson, Resilience of the Cooperative Business Model in Times of Crisis (ILO, 2009).
220
Birchall, Resilience in a downturn: The power of financial cooperatives.
44 Chapter 2.
Decent work and the social and solidarity economy
Contributions to decent work and sustainable development
Disaster Risk Reduction 2015–30. 221 In responding to natural disasters around the world, SSE units
contribute, technically and financially, to reconstruction efforts, as an act of solidarity. After the
Indian Ocean earthquake and tsunami of 2004, more than 500 new self-help groups were formed
by women in coastal villages in Tamil Nadu, India. These groups took part in the recovery effort
and, as a result, the status of women has improved with regard to employment options, financial
independence, family decision-making and having a voice at public meetings. 222 In 2020, the
Australian Mutuals Foundation ran a campaign to support communities affected by the bushfires,
receiving contributions from mutuals around the world. 223 Governments can improve the
integration of SSE units as partners in their disaster preparedness programmes.
102. SSE units cooperate with governments and development partners seeking to address the
needs of refugees and host communities. The SSE is well positioned to address the needs of
both displaced persons and host populations, as it offers a combination of practical services
through collective action, based on the values of self-help, mutualism and democratic and
participatory governance. SSE units provide social services, employment, income generation,
finance and knowledge exchange. They also contribute to social capacity and peacebuilding
functions, such as networking, solidarity and trust-building, problem-solving, collective action,
women’s empowerment, reconciliation and cultural sensitization. In 2015, it was reported that
social cooperatives in Italy provided 18,000 refugees, asylum seekers and migrants with essential
services in 220 welcome centres and 170 dedicated housing structures. 224 Cooperatives in Jordan
have provided career guidance and job placement services and supported improved OSH for
refugees and migrant workers and host communities in agriculture, with support from the ILO. 225
Through its Purchase for Progress (P4P) initiative, the World Food Programme has procured
staple items for emergency food assistance to refugees through cooperatives and producer
associations in 20 countries, thereby supporting local development. There is a knowledge gap
with regard to the role that the SSE can play in forced displacement contexts. Further research is
needed as to how SSE units fare in forced displacement contexts, also compared to and in
collaboration with public and private sector actors.
103. The SSE can play a valuable role in post-conflict situations, by taking part in conflict-
sensitive and peace responsive recovery and reconstruction efforts. SSE units can contribute
to peaceful coexistence, social cohesion and sustainable peacebuilding. In countries such as
Bosnia and Herzegovina, El Salvador, Guatemala, Lebanon, Mozambique, Nepal, North
Macedonia, Rwanda, Sri Lanka and Timor-Leste, cooperatives have played a critical role in post-
conflict reconstruction by creating jobs for returning displaced persons and ex-combatants,
rebuilding businesses and homes, giving refugees and returnees access to markets, facilitating
reconciliation and re-establishing relationships torn apart by war. 226 In Colombia, SSE units played
a central role in post-conflict local recovery and development by contributing to efforts to
reintegrate ex-combatants and build peace. SSE mechanisms have also been mobilized to resettle
ex-combatants in the Balkans (in the 1990s), in the eastern Democratic Republic of the Congo and
in Central America (1990–95), and in Southern Africa (1995–2000). In the Northern Province of Sri
Lanka, where cooperatives have been active since before the civil war (1983–2009), there has been
221
ICMIF and UN Office for Disaster Risk Reduction, From protection to prevention: The role of cooperative and mutual insurance in
disaster risk reduction, 2020.
222
Grant Larson et al., “The role of self-help groups in post-tsunami rehabilitation”, Sage journals 58, Issue 5 (2015): 732–742.
223
Business Council of Co-operatives and Mutuals of Australia, “Community resilience and recovery”.
224
ILO, Mapping responses by cooperatives and social and solidarity economy organizations to forced displacement, 2020.
225
ILO, “Jordan launches national strategy for the cooperative movement, with ILO support.” 3 July 2021.
226
ILO, Mapping responses by cooperatives and social and solidarity economy organizations to forced displacement, 2020.
Decent work and the social and solidarity economy
Chapter 2. Contributions to decent work and sustainable development 45
some success in increasing the incomes of people brought together as members in a cooperative.
Furthermore, by bringing people together, cooperatives have been able to challenge some of the
cultural constraints placed on women in a conservative society.
227
Anita Gurumurthy et al., Platform labour in search of value: A study of workers’ organizing practices and business models in the
digital economy, 2021.
228
Green Taxi Coop.
229
Luciana Bruno, Collecting Dignity: Recyclable Waste Pickers of Brazil (Institute for the Cooperative Digital Economy, 2020).
230
DENIC, “Internet and a Cooperative Society - How Does That Go Together?”
231
GoCoop.
232
Gurumurthy et al.
233
Valérie Boiten, Closing the Loop - Can Social and Solidarity Organisations Accelerate the Circular Economy? (UNTFSSE, 2019).
46 Chapter 2.
Decent work and the social and solidarity economy
Contributions to decent work and sustainable development
cooperative model as an effective tool for formalization. 234 The SSE can contribute to the
achievement of Goal 7 (affordable and clean energy), Goal 8 (decent work and economic growth),
Goal 11 (sustainable cities and communities), Goal 12 (responsible consumption and production),
Goal 13 (climate action), Goal 14 (life below water) and Goal 15 (life on land) of the 2030 Agenda.
It can do this to the extent that SSE units can provide access to renewable energy and resource
efficiency in their own operations, make cities and human settlements inclusive, resilient and
sustainable, advance sustainable consumption and production, and work on climate action and
towards the protection of life below water and on land. In the United Kingdom, 20 per cent of
social enterprises noted that they address the climate emergency as part of their core mission.
One third (35 per cent) indicated that they have embedded tackling climate change or the climate
emergency into their constitutions or articles of association. Another third (32 per cent) noted that
they have plans to or are considering to do so. 235
107. SSE units in sectors ranging from agriculture and housing to energy are greening their
operations and lowering their environmental footprint. Mutual insurance for crops, improved
irrigation and watershed management techniques, the use of renewable and naturally occurring
materials for insulation and diversification to drought-resistant crops are some of the strategies
that SSE units can use. In Kenya, the Dunga Fishermen Cooperative Society is addressing the low
stock levels resulting from overexploitation and climate change impacts, by breeding thousands
of fish through an aquaculture development initiative and then releasing them into a lake. 236 The
international community, national and local governments and the social partners can build the
SSE into their just transition plans and programmes.
108. The SSE also contributes to environmental sustainability by producing and selling products
and services in green sectors such as renewable energy. In many developing countries, solar-
powered, community-based mini-grids offer a cost-effective alternative to rural electrification. SSE
units have also been involved in the generation and distribution of renewable energy for many
years. 237 REScoop.eu, the European federation of citizen energy cooperatives, a non-profit
association operating like a cooperative, represents 1,900 energy cooperatives with 1.25 million
member-households. 238 As community ownership of renewable energy sources through SSE
units grows, it is important to take into account the need to ensure that the green jobs created
are also decent jobs for workers in this sector. In Brazil, COOPERBIO is the country’s first biodiesel
cooperative that brings together 25,000 households of smallholder farmers and landless workers
to collect biomass and produce biodiesel and ethanol using castor bean, jatropha, sunflower and
other plants. It generates jobs and incomes, promotes healthy diets for rural families and
advocates for the environment and the protection of water resources and biodiversity. 239
109. In response to challenges in informal operations such as hazardous working environments,
low bargaining power and lack of voice and representation, waste pickers have set up a
variety of SSE units, especially in Latin America and South Asia. 240 In contexts where formal
waste management systems are not fully developed, informal waste pickers have played a key
role in collecting, sorting and recycling waste. They contribute to safeguarding public health,
234
ILO, Guidelines for a just transition towards environmentally sustainable economies and societies for all, 2015.
235
Social Enterprise UK, 2021.
236
COPAC, Transforming our world: A cooperative 2030 - Cooperative contributions to SDG 14, 2019.
237
ILO, Providing clean energy and energy access through cooperatives, 2013.
238
REScoop.eu.
239
ILO, Providing clean energy and energy access through cooperatives, 2013.
240
ILO, “Waste pickers’ cooperatives and social and solidarity economy organizations” (brief), 2019.
Decent work and the social and solidarity economy
Chapter 2. Contributions to decent work and sustainable development 47
improving sanitation and protecting the environment at the local, national and international levels
by promoting resource circulation and reducing the amount of landfill waste. In Colombia, the
Cooperative Association of Recyclers of Bogotá (ARB), a federation of 17 cooperative organizations
representing around 1,800 waste pickers, negotiates with the municipality, government and the
private sector. In India, Solid Waste Collection Handling, a worker cooperative of 3,000 women
worker-members who are waste pickers and itinerant waste buyers, has entered into a contract
with Pune Municipality. While these SSE units can help improve terms and conditions of work for
waste pickers, significant decent work deficits, including OSH hazards, persist.
110. In recent years, SSE units have started to get involved in managing electrical and electronic
waste (e-waste). In 2019, every person on earth generated 7.3 kilograms of e-waste per year, up
from 5 kilograms in 2010. 241 Most actors in the e-waste value chain operate in the informal
economy. The points of consensus from the 2019 ILO Global Dialogue Forum on Decent Work in
the Management of Electrical and Electronic Waste (e-waste) acknowledge that cooperatives and
other SSE units perform a key role in e-waste management in many countries. They have
promoted the rights of informal workers, advocated their inclusion and recognition, and created
formal and decent work opportunities. 242 In the United States, RecycleForce is a social enterprise
that is committed to community integration of post-incarcerated persons through employment
and job training, while improving the environment through electronics recycling. Since 2006, it
has safely recycled more than 65 million pounds of e-waste while providing job training to
thousands of returning citizens. 243
111. Many SSE units contribute to food networks associated with fair trade, solidarity purchasing
and collective provisioning. They enhance food security and foster sustainable and more
equitable agri-food systems that promote decent work and practices which are greener and fairer
across supply chains. 244 In Portugal, Re-Food, an association with 7,500 volunteers, contributes
to eliminating food waste and hunger in local communities.
241
Ian Tiseo, Per capita electronic waste generation worldwide from 2010 to 2019 (in kilograms per capita), 2021.
ILO, Points of consensus of the Global Dialogue Forum on Decent Work in the Management of Electrical and Electronic Waste (e-waste),
242
GDFEEW/2019/7, 2019.
243
Recycle Force.
244
ILO, “Cooperatives & Social Solidarity Economy - Responses to key issues in the report of the Global Commission on the Future
of Work, 2019” (brief), 2019.
Decent work and the social and solidarity economy
49
112. Chapter 3 examines the relationship between the ILO’s tripartite constituents and the SSE. The
promotion of the SSE to advance decent work and sustainable development calls for new forms
of cooperation between governments, employers, workers and societies at large.
Governments
113. The forms in which the SSE is recognized in legislation varies across countries. 245 The
constitutions of several countries recognize the SSE. These include the constitutions of the
Plurinational State of Bolivia (which refers to the ”social and community economy”), Ecuador
(which refers to the ”social and solidarity economy” and “popular and solidarity economy”) and
Mexico (which refers to the ”social sector”). Many national constitutions refer to organizational
forms of the SSE. For example, more than 60 constitutions recognize the role of cooperatives. 246
Federal countries have introduced SSE laws at different levels. For example, while Mexico has an
SSE law at the federal level, SSE laws in Argentina have been introduced at the provincial level.
Adopted SSE legislation differs in its level of detail. Most texts are based on the framework
legislation model, laying out general obligations and principles, often featuring around 20 articles.
This is the case, for example, in Cabo Verde, Cameroon, Portugal and Uruguay. Others have more
detailed provisions, as is the case in France (98 articles) and Honduras (70 articles). The definition
of the SSE in legislation has varied in its grounding, from values and principles to a specification
of legal forms and restriction to certain economic activities. Most SSE texts explicitly refer to SSE
principles and organizational forms, but relatively few specify SSE values or restrict the SSE to
specific economic activities. Some SSE legislation has introduced mechanisms for the
identification of SSE units or specific organizational forms. Overall, the adoption of regulatory
frameworks on the SSE remains limited. Those related to specific components of the SSE may also
need to be revised to reflect changing realities.
114. The enactment of SSE legislation is often followed by the creation or strengthening of
government institutions that both regulate and support the SSE. The status of such
institutions, however, can vary considerably. Several countries have established SSE ministries
(including Belgium (Flanders), Cameroon, Luxembourg, Morocco, Nicaragua, Senegal and
Spain). 247 Others have vice-ministries (Costa Rica), national secretariats (France, Republic of
Korea), ministerial institutes (Mexico) or inter-ministerial commissions (Colombia). More
fragmented institutional arrangements also exist, whereby different ministries or departments
assume different responsibilities for the SSE or are in charge of specific organizational forms of
the SSE. In several countries, the trajectory of institutionalization involves the emergence of
ministries or agencies that merge multiple initiatives linked to the regulation, coordination and
promotion of the SSE. 248
115. Governments committed to the development of the SSE often establish mechanisms for
coherence and coordination across a broad range of policy areas. Because SSE units may
245
Hiez.
Ifigenia Douvitsa, "National Constitutions and Cooperatives: an Overview", International Journal of Cooperative Law 1, No. 1
246
(2018): 128–147.
247
In most cases, the mandate of these ministries includes the SSE in addition to other responsibilities, such as labour.
248
Utting.
50 Decent work and the social and solidarity economy
Chapter 3. Relationship with ILO constituents
operate across different industries and institutional sectors, it is difficult to assign them to a
specific government portfolio. Historically, responsibility for organizational forms that fall under
the SSE has often been assigned to different technical ministries. Cooperatives, for example, may
be placed under the oversight of the ministry in charge of agriculture and rural development. In
fact, cooperatives alone may be under the oversight of multiple ministries, depending on the
sectors in which they operate (for instance, agriculture, finance, industry or housing). Mutuals
may fall under the ministry in charge of finance, while associations are in many countries
regulated by the ministry of the interior. Such assignment of responsibilities can be valuable for
the development of specific SSE components. However, the absence of effective coordination
mechanisms may result in institutional fragmentation and prove to be detrimental to promoting
the SSE as a whole. 249 Some countries have developed coordination mechanisms on the SSE. They
notably include Brazil (Brazilian Forum for the Solidarity Economy), Chile (Public–Private SSE
Consultative Council), Djibouti (National Council for the Promotion of the SSE), France (National
Council of Regional Chambers of the SSE), the Republic of Korea (Korea Social Enterprise
Promotion Agency), Senegal (Minister Delegate to the Minister for Microfinance and the Solidarity-
Based Economy) and Spain (Spanish Social Economy Observatory). 250 Some of these institutions
provide support services to SSE units such as capacity-building and incubation. They also
coordinate SSE policies and interventions and mediate between the government and the SSE.
National institutional arrangements adapted to the multi-sectoral nature of the SSE have been
reflected in regional and local institutions as well, as exemplified by relevant regional institutions
in Canada (Quebec and Montreal) and France (Provence-Alpes-Côte d’Azur). 251
Workers’ organizations
116. Around the world, workers’ organizations and SSE units share values and principles, a
common history and occasionally intersecting organizational structures. In many countries,
workers’ organizations and cooperative organizations trace their origins to the same social and
economic upheavals. In relation to the SSE, a priority of workers’ organizations is to promote and
defend SSE workers’ rights and interests. They may also engage with the SSE to provide goods
and services for their members and to reach out to workers and producers that may not be their
members. In some cases, they combine trade union and SSE activities within the same umbrella
structure. For instance, in India, SEWA presents itself as being at the confluence of the labour
movement, the cooperative movement and the women’s movement. 252 It emerged from the
women’s wing of the textile labour association before being registered as a trade union. SEWA
advances the rights of its members in the rural and informal economies through the union and
improves livelihoods through cooperatives and other collective social enterprises. 253 In other
instances, what may have started as an SSE unit may have later turned into a fully-fledged trade
union. For example, in Jamaica, where domestic workers constitute 16 per cent of the female
labour force, the Jamaican Household Workers Association was formed to train members in
household management, negotiation and conflict resolution skills. In 2013, the Association
249
ILO, Mapping the Social and Solidarity Economy Landscape in Asia: Towards an Enabling Policy Environment, ILO brief:
Strengthening Social and Solidarity Economy Policy in Asia, 2022.
250
Marguerite Mendell and Béatrice Alain, “Enabling the Social and Solidarity Economy through the Co-Construction of Public
Policy”, Social and Solidarity Economy – Beyond the Fringe (Zed Books: London, 2015), 166–182.
251
Mendell and Alain.
252
SEWA, “Introduction”.
253
ILO, Advancing cooperation among women workers, 2018.
Decent work and the social and solidarity economy
Chapter 3. Relationship with ILO constituents 51
registered as a trade union with more than 1,600 members, representing domestic workers in the
country’s Minimum Wage Advisory Commission. 254
117. Workers’ organizations have established SSE units in the areas of retail, affordable housing,
small-scale finance, mutual insurance, education and training, and employment
preservation in order to benefit their members. Some examples include:
• In Brazil, UNISOL Brasil is an umbrella organization of associations, cooperatives and other SSE
units that operates with the active participation of a national trade union (Single Confederation
of Workers (CUT)). It supports SSE units of informal waste pickers/recycling workers and other
workers in a range of sectors. It provides advice on worker buyouts and on the establishment
of social cooperatives. The CUT contributes to institutional dialogue and provides technical
support.
• In the Canadian province of Quebec, the law enables workers of an enterprise to collectively
acquire equity in the enterprise through a cooperative and participate in its governance. There
are over 50 such worker cooperatives in Quebec, which have resulted from cases of owner
retirement or failing enterprises. When a radio station was failing, its 13 workers, with the
support of their trade union, progressively acquired the shares of the station, becoming 100
per cent owners and creating a worker cooperative in 2007. 255
• In Colombia, the Union of Domestic Service Workers (UTRASD) started a social enterprise for
cleaning and care services, as a worker-owned alternative to existing intermediaries. 256 It has
provided training to over 300 care and domestic workers, improving their professional skills,
knowledge of labour rights and self-esteem, and organized a marketing campaign to generate
a client base and secure new contracts.
• Eswatini’s largest credit union (in terms of members and savings) was established by the
influential national teachers’ union. 257
• In India, Nirmala Niketan is a collective of domestic workers set up by tribal women from
Jharkhand. It is supported by the National Campaign Committee for Unorganized Sector
Workers and its partners. 258
• Italy’s experience with worker-recovered enterprises, facilitated by its extensive cooperative,
business and labour legislation on the subject and its enabling environment in that regard, is
built around a financing structure facilitated by collaboration between workers’ organizations,
the State and the cooperative movement. 259
• In Japan, trade unions in the 1950s established various workers’ welfare organizations, such as
worker-oriented consumer cooperatives, labour banks, 260 workers’ insurance cooperatives and
workers’ housing associations, which exist to this day. 261
254
ILO, “Cooperating out of isolation: Domestic workers’ cooperatives” (brief), 2014.
255
ILO, Job preservation through worker cooperatives: An overview of international experiences and strategies, 2014.
256
ILO, Organizing workers in the informal economy of selected African and Latin American countries: The potential of trade union,
cooperative and social and solidarity economy partnerships, Policy brief, forthcoming.
257
SNAT CO-OP, “We’re SNAT Co-op: The answer to a teacher’s financial needs”.
258
Nirmala Niketan.
259
EURICSE, The Italian road to recuperating enterprises and the Legge Marcora framework, 2017.
260
Akira Kurimoto and Takashi Koseki, Rokin Banks - 70 years of efforts to build an inclusive society in Japan through enhancing workers’
access to finance Social Finance Working Paper No. 76 (ILO, 2019).
261
Akira Kurimoto, “Cooperatives and Trade Unions: From occasional partners to builders of a solidarity-based society”, in
Cooperatives and the World of Work, ed. Roelants et al. (Routledge: London, 2019), chapter 9.
52 Decent work and the social and solidarity economy
Chapter 3. Relationship with ILO constituents
• In the United Kingdom, a group of trade unionists, cooperators, educators and academics
developed the ”union co-op” model of cooperatives that are owned and controlled by their
workforce and reserve a formal place in their governance for a trade union. 262
118. Partnerships between workers’ organizations and the SSE in the informal economy point to
their value added across the micro, meso and macro levels. Such partnerships include the
provision of individual support and services (micro level) and building collective identity and
knowledge and commitment to shared ownership and mutual support (meso level). Often rooted
in wider rights and social justice movements, many SSE units have successfully built strategic
coalitions to build worker power, visibility and influence, leading to improved rights and
protections as a result of locally, nationally and globally focused advocacy and dialogue (macro
level). In 2011, the Congress of the African Regional Organization of the International Trade Union
Confederation (ITUC–Africa) adopted a resolution on promoting organization in the informal
economy and a solidarity-based economy for better development of Africa, underlining the
importance of cooperation between the SSE and trade unions in organizing the informal
economy. 263 In Togo, the Mutual Social Protection Scheme for Workers in the Informal Sector
(MUPROSI) is a mutual scheme that provides primary healthcare insurance for its members. It
was established in 2005 by a trade union and is supported by the Federation of Wood and
Construction Workers of Togo (FTBC–Togo). It operates as a social, non-profit association based
on mutual aid and solidarity among its 1,231 direct members, of whom 42 per cent are women. It
has 4,269 beneficiaries that are dependants of the members. 264
119. Workers’ organizations occasionally build alliances with SSE units to pursue common goals.
In the Canadian province of Quebec, long-standing collaboration between trade unions and SSE
units has led to the growing membership of both movements. 265 In Ghana, when negotiating a
new Labour Act in 2003, the Ghana Trades Union Congress successfully proposed that the Act
should cover all workers rather than just employees and should provide protections for casual
and temporary workers. In 2003, the Congress was successful in negotiating a health insurance
scheme that provided for both formal and informal workers. 266 The General Agricultural Workers’
Union of Ghana formed a wing to organize smallholder farmers and support their registration
with national social protection schemes. At the international level, trade unions, informal
economy organizations and civil society groups sometimes form coalitions around a common
agenda, including campaigns for the ratification and application of international labour
standards, such as Convention No 189 and the Violence and Harassment Convention, 2019
(No. 190).
Employers’ organizations
120. SSE units and SSE vertical structures may join existing employers’ organizations. In Spain,
the supermarket retailer Eroski, part of the Mondragon group of cooperatives, is a member of the
262
Alex Bird et al., A Manifesto for Decent Work (Union Co-ops UK, 2020).
LO/FTF Council, Paving the way for formalisation of the informal economy: Experiences and Perspectives from ITUC-Africa and Trade
263
124. This chapter presents the Office’s action on the SSE. In addition to providing a historical
background, it describes current programmes, development cooperation policy and partnerships,
and capacity-development activities relating to the SSE.
Historical background
125. The ILO’s Cooperatives Unit, which is responsible for ILO activities on the SSE, was
established in 1920 by a unanimous decision of the Governing Body at its third session. Since
then, the Unit’s scope, size, name and organizational position has evolved in response to changing
realities and approaches. The Unit currently has three Professional regular budget staff positions
(one at the P5 level and two at the P4 level), after one of its regular budget positions was
reassigned to another unit in 2016. One constant, however, has been the reference to
cooperatives and cooperation in its name over time. 267 The Unit was originally established to carry
out research and to provide information and legal advisory services related to cooperatives. In
the 1960s, when many developing countries gained their independence, the unit embarked on an
ambitious development cooperation programme. Supported by the UN Development Programme
(UNDP) and bilateral donors, this programme had, by the end of the 1960s, become the Office’s
third-largest extrabudgetary portfolio and remained so until the 1980s. 268 During the 1990s, with
the changing role of the State in socio-economic development in favour of for-profit private
enterprises, resources allocated to cooperative development declined sharply. Recommendation
No. 193 sparked renewed interest in cooperatives as agents for poverty alleviation and
development. The term ”social economy” appeared occasionally in ILO documents as far back as
1922. 269 Since the adoption of the ILO Declaration on Social Justice for a Fair Globalization in 2008,
ILO constituents have increasingly turned to the Office for assistance and advice related to the
SSE. Before then, the ILO had promoted a wide range of SSE units without necessarily labelling
them as such.
126. Across the years, the ILO has designed and implemented a number of initiatives with or
through SSE units. These notably include:
267
ILO, “What is in a name? Changes to the Designation of COOP Unit at the ILO across the century.”
268
In 1969, when the ILO turned 50, the Cooperative Programme employed more than 120 international experts, working in close
to 70 countries.
269
ILO, Minutes of the 11th Session of the Governing Body of the International Labour Office, 1922.
56 Decent work and the social and solidarity economy
Chapter 4. Office action on the SSE
generation capacities and protecting their natural resources through cooperatives and other
self-help organizations (1993–2007).
• The Strategies and Tools against Social Exclusion and Poverty (STEP) programme, which
extended health insurance coverage to non-protected population groups, notably those in the
informal economy through mutual benefit organizations and community-based health
insurance schemes (1998–2013).
• The Poverty Reduction among Unprotected Informal Economy Workers through Trade Union–
Cooperative Joint Action (SYNDICOOP) initiative, which sought to develop synergies between
the cooperative and trade union movements to support SSE units of informal workers in Africa
(2002–06).
• The Cooperative Facility for Africa (CoopAfrica), which operated in nine countries in Eastern and
Southern Africa to assist cooperatives in efforts to improve their governance, efficiency and
performance (2007–11).
127. Over the past five decades, the ILO’s approach to cooperative promotion has evolved with
changing constituent priorities. Until the late 1980s, cooperatives were seen as key
development actors, and hence many ILO initiatives were aimed at directly setting up
cooperatives in developing countries. This was followed by a period of about 15 years during
which the Office focused on establishing a conducive environment for cooperative development,
working mostly at the macro and the meso levels through larger, interregional programmes. In
the 20 years since the adoption of Recommendation No. 193, cooperatives and units in the wider
SSE are not only recognized as implementing partners but also as institutional forms that can help
advance decent work and sustainable development.
128. In the last decade, the Office has responded to requests by the constituents regarding the
SSE through a number of development cooperation projects, as described below.
• In Algeria, the ILO worked to improve youth employability and professional integration through
the SSE by strengthening the technical capacities of SSE units and providing them with technical
and financial assistance (2016–18).
• The main objective of the ILO’s Dignità in Campo project in Italy was to prevent new forms of
labour exploitation in the agricultural sector and to promote new practices in social economy
through pilot actions in two territories (2018–20).
• The ILO contributed to a project on the development of SSE in the Occupied Palestinian
Territory with a focus on the development of a legal framework on cooperatives and on
enhancing their role in promoting gender equality and women’s economic empowerment
(2019–20).
• The Office has also supported ILO constituents in South Africa in the development of an SSE
policy. 270
• In Tunisia, the ILO’s support to constituents has included contributing to promoting a
conducive environment for the development of the SSE. The first ILO project on the SSE in
Tunisia started in 2016 and supported the development of a framework policy on the SSE. 271
Subsequent SSE projects in Tunisia have focused on youth employment and rural women
entrepreneurship through the SSE.
The “Development of a Social Economy Policy in South Africa project” (2017–21) was funded by the Government of Flanders
270
Current programmes
129. The Office supports ILO constituents in SSE-related areas ranging from legal and policy
advice, to research and statistics, to training and capacity-building. In recent years, the Office
has worked with constituents in Jordan, South Africa, Sri Lanka, the United Republic of Tanzania
and Tunisia, and in the Occupied Palestinian Territory, in the design of cooperative and wider SSE
policies and strategies. The Office has also provided inputs into policies on the SSE or its
components including cooperatives and social enterprises in Bulgaria, Ghana, Greece, Serbia, the
United Republic of Tanzania and Trinidad and Tobago. The Office uses a three-pronged approach
in its work on the SSE, which involves: advancing SSE units as economically, socially and
environmentally responsible and viable options for a human-centred future of work; encouraging
the integration of decent work priorities into SSE vertical structures and support institutions; and
ensuring that the specific development potential of the SSE is recognized in analysis, policy and
actions towards advancing sustainable development and decent work.
130. Although the Office’s scope of work on the SSE varies in terms of target groups,
implementation modalities, geographical coverage, duration and size, much of it takes a
multi-level approach. In its work on the SSE, the Office ensures close consultation and
collaboration with the constituents. At the macro level, the objective of the Office is to establish a
conducive policy, legislative and institutional environment for the SSE to flourish. At the meso
level, the Office seeks to establish and strengthen SSE support institutions and mechanisms,
including by strengthening capacities and supporting access to financing and markets. At the
micro level, the Office aims at nurturing and strengthening SSE units at the grassroots level for
the benefit of often marginalized and excluded population groups.
131. The Office uses a “One ILO” approach in incorporating SSE units into its programmes.
Highlights of this approach include:
• The Office currently implements SSE-related development cooperation projects in Africa, the
Arab States and Asia and the Pacific, which are funded by Belgium (Flanders), Canada, France,
Italy, the Republic of Korea, Luxembourg, the Netherlands and the European Commission. 272
• Several ILO projects and programmes work with SSE units. These include projects working with
cooperatives and producer organizations to: support local economic development (Sri Lanka);
promote decent work in agribusiness (Ethiopia and Morocco); advance youth employment
(Cambodia and Lao People’s Democratic Republic); and facilitate transition to the formal
economy (Senegal). ILO projects promoting the transition to the formal economy involve the
formation of, and support to, SSE units. 273
• Multiple research initiatives have strengthened the knowledge base of the constituents on the
SSE. A series of Office reports and briefs explores the role of SSE units in advancing decent work
in the rural, informal, care and platform economies, women’s economic empowerment, the
future of work, crisis response, trade and supply chains, the green agenda, the statistics of
cooperatives and sustainable development. 274
• The Office has also provided support to social finance institutions, including microinsurance
providers, some of which are SSE units. More recently, it has undertaken research exploring the
role of social finance in advancing the SSE.
272
ILO, “Projects on cooperatives and social and solidarity economy”.
273
ILO, “Projects on informal economy”.
274
ILO, “Publications and tools on cooperatives”.
58 Decent work and the social and solidarity economy
Chapter 4. Office action on the SSE
132. Two current programmes implemented by the Office demonstrate how SSE units are being
integrated into the Office’s development cooperation portfolio to advance the ILO’s decent
work mandate. These are described below:
• PROSPECTS, 275 a programme implemented in partnership with the Office of the United Nations
High Commissioner for Refugees (UNHCR), the United Nations Children’s Fund, the
International Finance Corporation and the World Bank, is funded by the Government of the
Netherlands. The work on cooperatives facilitates the integration of refugees into the labour
market through the improvement of livelihood opportunities for refugees and host
communities in African countries (Ethiopia, Sudan and Uganda) and in Arab States (Iraq, Jordan
and Lebanon).
• The main objective of the ILO’s Accelerating action for the elimination of child labour in supply
chains in Africa (ACCEL Africa) project, 276 funded by the Government of the Netherlands, is the
elimination of child labour in cocoa, coffee, cotton, tea and gold supply chains in Burkina Faso,
Côte d’Ivoire, Egypt, Malawi, Mali, Nigeria, the United Republic of Tanzania and Uganda. It seeks
to strengthen cooperatives and other producers’ organizations and raise awareness regarding
their role in eliminating child labour. It focuses on improving governance mechanisms of
cooperatives and producers’ organizations, especially at the lower tiers of the supply chain, and
on empowering them to minimize their socio-economic vulnerabilities.
133. The Office has adapted its work in view of the COVID-19 pandemic to address the emerging
needs of the constituents around the SSE. The ILO has included the impact of COVID-19 in its
research and needs assessments to better understand and address the needs of its constituents.
Direct financial and technical support is being provided to SSE units hit by the crisis through
ongoing ILO programmes. Research methods, training materials and delivery mechanisms were
adapted to address the changing circumstances for delivery during the COVID-19 pandemic,
including phone interviews, virtual study tours, online learning and multimedia materials. At the
global level, the Office has documented good practices of SSE units responding to the crisis, to
inform the development of response and recovery measures by the constituents. The Office has
also organized and participated in a range of webinars and capacity-building activities on the SSE
and COVID-19.
275
ILO, “Partnership for improving Prospects for host communities and forcibly displaced persons”, 2019–23.
276
ILO, “Accelerating action for the elimination of child labour in supply chains in Africa (ACCEL Africa)”.
277
European Commission, Building an economy that works for people: an action plan for the social economy, 2021.
Decent work and the social and solidarity economy
Chapter 4. Office action on the SSE 59
in 35 countries. 278 The United Kingdom’s Foreign, Commonwealth and Development Office has
promoted social enterprises in many countries.
135. The ILO has been at the forefront of the promotion of cooperatives and the wider SSE within
the UN system. The ILO is the only UN agency with a dedicated organizational unit working on
the SSE (Cooperatives Unit). While no other UN agency has established such a unit on this
portfolio, the SSE often plays a key role in projects implemented by UN agencies, in particular
those that operate at the country level, such as the Food and Agriculture Organization of the
United Nations (FAO), the International Fund for Agricultural Development, the UNDP, the United
Nations Industrial Development Organization (UNIDO), the UNHCR, the United Nations
Educational, Scientific and Cultural Organization and the World Food Programme. Collaboration
and cooperation between these agencies at the UN country team level can benefit from the
complementarities of their different areas of knowledge and help accelerate advancement of the
SSE. Historically, such partnerships have been put to use effectively between the ILO, the FAO, the
UNDP, UNIDO and the World Food Programme. At the global level, the UN Department of
Economic and Social Affairs addresses the role of cooperatives in development policy, organizes
expert group meetings on the subject and prepares the Secretary-General’s biennial report on the
role of cooperatives in social and economic development in line with the UN resolution on that
subject. 279 The United Nations Research Institute for Social Development (UNRISD) undertakes
interdisciplinary research and policy analysis on the SSE and its contributions to sustainable
development. 280 The UNTFSSE, which was co-founded by the ILO in 2013, has met around 40 times
since its foundation. Led by the ILO since 2017, the task force has facilitated interactions between
the UN system and international and regional SSE umbrella organizations and research centres.
136. The Office has established bilateral partnerships and memoranda of understanding with a
range of international vertical structures of the SSE. These notably include the ICA and the
International Centre of Research and Information on the Public, Social and Cooperative Economy
(CIRIEC). The Office also has ongoing partnerships with the Global Social Economy Forum, the
Intercontinental Network for the Promotion of Social Solidarity Economy (RIPESS), the European
Commission’s Expert Group on Social Economy and Social Enterprises (GECES), United Cities and
Local Governments and Women in Informal Employment: Globalizing and Organizing (WIEGO).
Through these partnerships, the ILO has operational contacts with national and sectoral
cooperative bodies, membership-based organizations and SSE umbrella institutions across the
world.
137. The Office partners with SSE research institutes to advance knowledge on areas such as
platform cooperatives, social innovation and worker-owned enterprises. Resource people
from these institutions contribute to the research and learning activities of the Office. EURICSE,
the Research Institute for Work and Society at the Catholic University of Leuven University (HIVA)
and the EMES International Research Network are among the research centres that the ILO
partners with to conduct research on cooperatives, social enterprises and the SSE. The Office also
has a longstanding partnership around research and training with cooperative colleges (Uganda
and the United Kingdom) and universities (Kenya and the United Republic of Tanzania).
138. The Office supports cross-regional learning on the SSE through research, online platforms,
workshops and study tours. Since 2011, the ILO and the Japanese Consumers’ Co-operative
Union have jointly organized ten study tours for African cooperative leaders to visit Japan. These
278
USAID, “Cooperative Development Program”.
279
UN General Assembly, resolution 56/114, Cooperatives in social development, A/RES/56/114 (2002).
280
UNRISD, “Alternative Economies for Transformation”.
60 Decent work and the social and solidarity economy
Chapter 4. Office action on the SSE
provide exposure to sectors, notably health and social care services and renewable energy, where
SSE units are emerging. 281 Similar study tours have taken place in Italy in the context of different
academies of the International Training Centre of the ILO (Turin Centre) (for example, on rural
employment, youth employment, gender equality and the SSE) to increase exposure to SSE
practices in a range of sectors, notably agrotourism, care services and the integration of migrants
and refugees. The SSE is also addressed in the Office’s work on South–South and triangular
cooperation, including through research exploring the relationships between the SSE and such
cooperation.
Capacity development
139. Throughout the years, the Office has produced capacity-development tools, materials and
programmes in multiple languages and adapted them to different contexts. 282 These tools
have been adapted not only to national contexts, but also to specific sectors (such as mining and
fisheries) and target groups (such as disadvantaged young people, rural women, indigenous
peoples and refugees). They include:
• the Material and Techniques for Cooperative Management Training (MATCOM), the first
training package produced by the Office (1978–89) to build the capacities of managers of
cooperatives;
• six readers on the SSE, developed in cooperation with the Turin Centre and selected research
institutions since 2011 for the ILO Academies on the SSE;
• the My.COOP training package for improving the management of agricultural cooperatives,
launched in 2012 in partnership with the Turin Centre, the FAO, Agriterra and other cooperative
training institutions. The Turin Centre organizes an annual virtual My.COOP training course in
multiple languages. In 2019, it converted the training material into a smartphone-compatible
self-learning training package (My.COOP Smart);
• the ApexFinCoop training programme, developed through a partnership between the FAO and
the ILO and its Turin Centre and launched in 2017 to support the apex organizations of financial
cooperatives in developing and implementing effective strategic planning, in order to fulfil their
functions in a cost-effective way, to the satisfaction of their members; 283
• the Start and Improve Your Business for Social Entrepreneurs tool, conceived in 2017 and
digitized into a self-learning package in 2021;
• the Think.Coop and Start.Coop tools, launched by the Office in 2018 to raise awareness of the
cooperative model and to guide the process of establishing cooperatives using a peer-to-peer,
activity-based learning methodology;
• an awareness-raising tool for cooperatives on the elimination of child labour, launched in 2021
and translated into French and Spanish and used in Africa and in the Americas; 284 and
• a practical OSH tool for agricultural cooperatives and Manage.Coop, a training package for
improving the management of existing cooperatives, rolled out by the Office in the first half of
2022.
281
ILO and Japanese Consumers’ Co-operative Union, Cooperation among Cooperatives in Action between Japan and Africa: 10 Years
of ILO/JCCU African Cooperative Leaders’ Study Tour, 2021.
282
The Office’s “capacity development tools” are available in the three official ILO languages and other languages upon request
by ILO constituents.
283
FAO, ILO and Turin Centre, “ApexFinCoop” (brief).
284
ILO, The role of cooperatives in eliminating child labour: A facilitator guide to train field trainers, 2021, and The role of cooperatives
in eliminating child labour: A facilitator guide to train management, staff and members of agricultural cooperatives 2021.
Decent work and the social and solidarity economy
Chapter 4. Office action on the SSE 61
140. The plan of action for the promotion of social economy enterprises and organizations in
Africa, adopted at an ILO regional conference on the SSE held in Johannesburg in 2009, called
on the Office to increase the capacity of ILO constituents and other key stakeholders to
promote the SSE. 285 Since then, there have been 12 editions of the ILO Academy on the SSE,
organized by the Turin Centre. 286 In total, 517 women and 569 men participated in the first
11 editions, including 65 workers’ and 28 employers’ representatives and 67 officials from
ministries of labour. The 12th edition, conducted online in November 2021, brought together 141
women and 166 men from 83 countries. 287
141. The limited human and financial resources allocated to this portfolio have been a challenge.
A high-level independent evaluation of the ILO’s strategy and action on promoting sustainable
enterprises 2014–19 highlighted concerns that the Office’s work on promoting cooperatives and
the SSE “had received less support and resources than it deserved, despite this being an area of
growing international interest”. In addition, it highlighted that “the fact that a significant part of
its work links to other [programme and budget] outcomes needs to be considered when resource
decisions are made”. 288 To help ILO constituents to become better acquainted with the work of
the Office on SSE units, an online self-learning tool was developed in partnership with Turin
Centre, with a specific focus on cooperatives.
ILO, Plan of action for the promotion of Social Economy Enterprises and Organizations in Africa, ILO Regional Conference “The Social
285
289
UNTFSSE, Social and Solidarity Economy and the Challenge of Sustainable Development.
64 Chapter 5.
Decent work and the social and solidarity economy
Decent work and the SSE: Challenges, opportunities and future directions
290
These conditions are: peace and political stability; good governance; social dialogue; respect for universal human rights;
entrepreneurial culture; sound and stable macroeconomic policy; trade and sustainable economic integration; enabling legal and
regulatory environment; rule of law and secure property rights; fair competition; access to financial services; physical
infrastructure; information and communications technology; education, training and lifelong learning; social justice and social
inclusion; adequate social protection; and responsible stewardship of the environment.
291
UNTFSSE, Social and Solidarity Economy and the Challenge of Sustainable Development.
292
Hiez.
Decent work and the social and solidarity economy
Chapter 5. Decent work and the SSE: Challenges, opportunities and future directions 65
before generalization but may also lead to asymmetries concerning the SSE across jurisdictions.
A second choice is regarding the type of law, ranging from framework legislation to special
legislation with detailed provisions on all SSE organizational forms. Framework legislation, which
can synthesize the principles set out in existing legislation on the different SSE organizational
forms, can provide a basis for further legislative work. The third is the extent to which to ground
the national definition of the SSE in values, principles, organizational forms or economic activities,
or a combination thereof. Fourth, legislators can consider the relevance of introducing
mechanisms for the identification of SSE units or specific SSE organizational forms.
148. The promotion of the SSE also requires the adoption and implementation of favourable
policies in alignment with decent work and sustainable development. Such policies could
notably:
• promote employment in SSE units through integrated national employment policies, social
policies and supportive macroeconomic, fiscal and industrial policies;
• promote education and training in SSE values, principles and practices, at all appropriate levels
of the national education and training systems, and in the wider society;
• introduce support measures, where appropriate, for the activities of SSE units that meet specific
social and public policy outcomes, such as employment promotion or the development of
activities benefiting disadvantaged groups or regions, with such measures possibly including,
among others and to the extent possible, tax benefits, loans, grants, access to public works
programmes and special procurement provisions;
• facilitate the access of SSE units to markets, including through socially and environmentally
responsible public procurement;
• provide for training and other forms of assistance to improve the level of productivity and
competitiveness of SSE units and the quality of goods and services they produce;
• facilitate the access of SSE units to financial services tailored to their needs, including through
a regulatory framework for an inclusive financial sector, with a strong presence of financial
service providers that are part of the SSE;
• ensure that policies to guarantee universal social protection, inclusive of persons in the SSE,
including disadvantaged groups and persons with special needs, are in place and provide
support to SSE units to facilitate the access of their members and workers to social protection
entitlements;
• promote equality of opportunity and treatment for all SSE workers with regard to the
fundamental principles and rights at work and coverage under relevant national labour laws
and regulations, and ensure that SSE units are not set up or used in order to avoid compliance
with labour law, by ensuring that labour legislation is applied in all enterprises;
• promote the adoption of measures that promote OSH within the SSE, with particular attention
to the ongoing challenges presented by the COVID-19 pandemic;
• promote gender equality in SSE units and in their work, including in relation to maternity
protection, work-life balance and prevention and protection against gender-based violence and
harassment;
• facilitate the transition of workers and economic units from the informal to the formal economy
by enabling them to join together in formal SSE units; and
• integrate SSE units into strategies for promoting peace, preventing crises, enabling recovery
and building resilience as partners and as a means of implementation, in particular by:
supporting the contribution of SSE units to a just digital transition to enable broad social
participation in its benefits and addressing its risks and challenges;
66 Chapter 5.
Decent work and the social and solidarity economy
Decent work and the SSE: Challenges, opportunities and future directions
• fully harness the potential of the SSE to contribute to decent work and sustainable
development, by integrating SSE approaches into all relevant ILO projects, programmes and
activities;
• support the elaboration of conducive environments for the SSE through policy and legal
advisory services, research, capacity-building and financial services, to meet the needs of ILO
constituents, including through Decent Work Country Programmes;
• further integrate the SSE into the Office’s results architecture of relevant outcomes, outputs
and indicators of the ILO programme and budget and reactivate the Office-wide coordination
mechanism on the promotion of the SSE;
• further promote the SSE through ILO development cooperation projects, notably on the
abolition of forced labour and the elimination of child labour, forced displacement, women’s
economic empowerment, the inclusion of vulnerable persons, the promotion of youth
employment, the extension of social protection, the transition to the formal economy and crisis
response and resilience;
• further integrate the SSE in the ILO’s approach to a human-centred recovery from the COVID-
19 crisis, including in relation to a transformative agenda for gender equality and just
environmental and digital transitions;
• promote the collection and compilation of comparable, harmonized data on the SSE, building
on the work done to produce statistics on cooperatives, and move towards the development of
international guidelines on statistics concerning the SSE;
• with the Turin Centre, expand the Office’s capacity-development strategy on the SSE and build
a global SSE capacity-development network with SSE research institutions and training centres;
• continue to provide leadership in the UN system on the SSE for advancing decent work and
sustainable development, and mainstream decent work and social justice in activities on the
SSE, including through the COPAC and the UNTFSSE;
• collaborate with UN country teams to give due consideration to the SSE in planning and
implementation at all levels; and
• maintain, intensify and, where possible, broaden SSE-related partnerships with UN agencies,
SSE networks and SSE research centres, in close coordination and collaboration with ILO
constituents.
Decent work and the social and solidarity economy
67
Appendix
Conventions
Social Policy (Non-Metropolitan Producers’ and consumers’ cooperatives: reduction of production and
Territories) Convention, 1947 distribution costs for the promotion of productive capacity and the
(No. 82) improvement of standards of living of agricultural producers (Art. 8(e))
Social Policy (Basic Aims and Producers’ and consumers’ cooperatives: reduction of production and
Standards) Convention, 1962 distribution costs for the promotion of productive capacity and the
(No. 117) improvement of standards of living of agricultural producers (Art. 4(e))
Employment Promotion and Cooperatives: creation and promotion of all forms of productive and
Protection against Unemployment freely chosen employment (Preamble)
Convention, 1988 (No. 168)
Recommendations
Protection of Migrant Workers Stock farms, fish ponds and market gardens run on a cooperative
(Underdeveloped Countries) basis and retail stores run by workers’ cooperatives: Supply of
Recommendation, 1955 (No. 100) consumer goods to migrant workers and their families at reasonable
prices and in sufficient quantities (Paras 42(a) and 43(a) and (b))
Vocational Training (Fishermen) Cooperatives for the joint purchase and use of fishing boats:
Recommendation, 1966 (No. 126) employment in fisheries for trainees (Para. 7(d))
Vocational Rehabilitation and Cooperatives established and developed by and for persons with
Employment (Disabled Persons) disabilities: provision of vocational rehabilitation and employment
Recommendation, 1983 (No. 168) opportunities (Para. 11(e) and (f))
Job Creation in Small and Cooperative initiatives: potential supplementary measures as regards
Medium-Sized Enterprises social protection (Para. 7(3)(b))
Recommendation, 1998 (No. 189)
Mutual guarantee associations: access of small and medium-sized
enterprises to finance and credit under satisfactory conditions (Para.
14(3))
Transition from the Informal to Cooperatives and other SSE units: facilitation of the transition to the
the Formal Economy formal economy (Para. 11(g))
Recommendation, 2015 (No. 204)
Employment and Decent Work Cooperatives and other social economy initiatives: provision of
for Peace and Resilience employment and decent work and income-generation opportunities
Recommendation, 2017 (No. 205) for enabling recovery and building resilience (Para. 11(c))