Revista de economía mundial 67, 2024, 125-144
ISSN: 1576-0162
DOI: http://dx.doi.org/10.33776/rem.vi67.8096
InstItutIonalIzatIon of socIal Economy PublIc PolIcIEs as a stratEgy
agaInst global challEngEs: EvIdEncEfrom thE sPanIsh ExPErIEncE
InstItucIonalIzacIón de las polítIcas públIcas de economía
socIal como estrategIa frente a los retos globales:
evIdencIa de la experIencIa española
Belén Catalá Estada
Universitat de València
belen.catala@uv.es
Teresa Savall Morera
Universitat de València
Teresa.savall@uv.es
Rafael Chaves-Ávila
Universitat de València
Rafael.chaves@uv.es
Recibido: diciembre 2023; aceptado: enero 2024
abstract
This paper explores the process of increasing institutionalization of the
social economy, focusing on its critical role in addressing global challenges,
especially during crises. Through the theoretical identification of components
that characterize the institutionalization of social economy, the study
identifies the challenges faced and highlights Spain as a model of effective
institutionalization practices in terms of recognition, regulation, institutional
support, policies and programs, and participation in representative bodies.
Two distinct forms of institutionalization are distinguished: socio-cognitive
and political. Spain's leadership is noteworthy for integrating these forms,
translating conceptual ideals into tangible policies.
Keywords: Social economy, institutionalization, Spain, case study, public
policy.
rEsumEn
Este artículo explora el proceso de creciente institucionalización de la
economía social, centrándose en su papel fundamental a la hora de abordar
los retos mundiales, especialmente durante las crisis. Mediante la identificación
teórica de componentes que permiten caracterizar la institucionalización
de la economía social, el estudio identifica los retos a los que se enfrenta y
destaca a España como modelo de prácticas eficaces de institucionalización
en términos de reconocimiento, regulación, apoyo institucional, políticas y
programas y participación en organismos de representación. Se distinguen dos
formas distintas de institucionalización: sociocognitiva y política. El liderazgo
de España destaca por integrar y combinar estas formas, traduciendo ideales
conceptuales en políticas tangibles.
Palabras clave: Economía social, institucionalización, España, caso de
estudio, política pública.
JEL Classification/ Clasificación JEL: H10, H30, I38.
Revista de economía mundial 67, 2024, 125-144
1.IntroductIon
In recent times, social economy has gained recognition as a new socio-
economic organizational model for its ability to address various global
challenges of the 21st century, demonstrating resilient potential in times of
crisis and fostering sustainable inclusive prosperity (Chaves-Avila, 2023). While
issues like inequalities and environmental problems are not new, phenomena
like the Covid-19 crisis have magnified and accentuated them, underscoring
the need for collective responses to social problems.
Social economy is grounded on three key ideas: (1) it is a distinguishable
socio-economic reality, midway between the public and capitalist private
sectors; (2) this socio-economic reality has an explicit commitment to social
utility and positive socio-economic impacts at both micro and systemic
levels; and (3) as it generates social values, governments should implement
social economy policies to promote and develop it. These ideas have
characterized major political discourses on social economy, contributing to its
institutionalization over the past 20 years (Chaves-Avila, 2023).
Recently, buoyed by the rediscovery of its positive role in global crises,
international documents (European Commission, 2021, 2022; ILO, 2022;
OECD, 2022; UN, 2023; EU Council, 2023) have endorsed and recognized
the functions of social economy. Currently, it is at a peak of institutionalization
(Pouzoulet, 2023; Chabanet et al, 2021), acknowledged by academia and
the sector as the momentum of social economy (Chaves, 2022; UNTFSSE,
2022). Undoubtedly, social economy is trending, with international institutions
significantly incorporating it into their political agendas, and literature
showcasing its ability to confront shocks and contribute to global challenges
(Alvarez et al., 2022; Chaves-Avila & Soler, 2023). However, it is pertinent to
inquire about the practices characterizing the increasing institutionalization of
social economy globally.
Several studies have analysed and compared the regulations and policies
of different countries in terms of the social economy (Chaves & Monzón,
2018a; Utting, 2017; Correa, 2022). Likewise, various authors have identified
characteristics that explain the institutionalization of the social economy (Bassi
& Fabbri, 2020; Bidet & Richez-Batesti, 2022; Calvo et al., 2020; Opincaru,
2021) either in countries, in specific practices or in concepts. However, there
is hardly any literature analyzing the existence of elements and practices that
allow the institutionalization of the social economy.
128 Belén Catalá Estada · Teresa Savall Morera · Rafael Chaves-Ávila
This paper aims to fill this gap by examining institutionalization practices
within the realm of social economy, addressing the following research
questions: (1) What elements exist to assess the institutionalization of the
social economy? (2) Which are the mainstreaming practices in terms of
institutionalizing social economy? (3) Are there any paradigmatic experiences
regarding institutionalization in the social economy?
To achieve this, we theoretically explore the role of social economy and its
regulatory function in global challenges, as well as the analytical framework
of institutionalization in social economy. Subsequently, after explaining the
methodology of the case study conducted, we present the results from the
analysis of the institutionalization practices. Finally, we present the discussion
and main conclusions.
The novelty of this article lies in examining the institutionalization process
of social economy through the identification and compilation in the literature
of elements to assess it and the verification based on current practices,
contributing empirical evidence of actions that certain countries can take to
enhance their awareness of the social economy.
2.thEorEtIcal framEwork
2.1 thE rolE of socIal Economy In thE facE of nEw global challEngEs.
In recent decades, the world has faced various global crises. According to
the analysis of the Professor and Nobel laureate in Economics Paul Krugman,
the two primary challenges that humanity must address today are economic
inequality and environmental issues (Krugman, 2023). However, they are not the
only ones. Linked to economic growth and environmental problems, challenges
also arise in the social sphere and the imminent emergence of new pandemic
crises (Monzón, 2022). The former is a consequence of the widespread
increase in inequalities between regions of emerging countries and the growing
poverty gap between different areas of the planet. The latter results from
fostering new pandemics directly derived from the consequences of climate
change (Carlson et al., 2022; Monzón, 2022). All these global problems have
a severe and widespread impact on countries at the macroeconomic level. It is
acknowledged that this type of external shock undoubtedly carries a greater
impact than strictly economic recessions, highlighting the need to implement
new economic paradigms that address them in a multidimensional way.
In this context, social economy emerges to respond to these challenges.
First, because it plays a stabilizing role in times of crisis (Bretos & Morandeira,
2016; Garcia-Louzao, 2021). Secondly, due to the strong ties entities maintain
with their environment and the community (Catala & Chaves, 2022). Lastly,
because they have already proven to be key agents in the social and economic
spheres in other major crises such as COVID-19 (Chaves-Avila & Soler 2023;
Enciso-Santocildes et al., 2022).
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At the same time, social economy has a great capacity for resilience in
emergency situations. Wisner & Adams (2002) point out that crisis management
must go through five specific phases: mitigation, preparedness, response,
recovery/reconstruction, and development. According to Chaves-Avila & Soler
(2023), and considering this emergency management cycle, social economy
contributes substantially in each of these phases.
The evidence that social economy generates a network of mutual support
and has the capacity to drive collective projects that combine collective goals
with social objectives (Julia et al., 2022) has led institutions to place the
deployment of public policies to promote social economy at the center of their
agendas, enhancing the institutionalization of social economy. These policies
are seen as key elements in building post-COVID-19 society and addressing
various transitions such as energy, digital, and demographic. The United Nations
Inter-Agency Task Force on Social and Solidarity Economy has reflected on the
role of social economy in crises and has recognized that it must be a key actor
in three spheres: firstly, in promoting access to basic rights, especially for the
most vulnerable people. Secondly, in generating innovative solutions at the
local level, and thirdly, in contributing to a just transition (UNTFSSE, 2019).
Similarly, the International Labor Organization and the OECD have expressed
similar remarks (OECD, 2020; ILO, 2020).
Two main ideas have emerged from these recent crises regarding social
economy. On the one hand, the reaffirmation of its ability to face challenges
and seize opportunities in a resilient manner, especially when supported by
sound public policies that stimulate entrepreneurial activity. On the other
hand, and because of the first assumption, the increased attention paid to the
social economy by policy makers and other international organizations, which
have begun to give it greater institutional recognition.
2.2. analytIcal framEwork of InstItutIonalIzatIon of socIal Economy
In line with the aforementioned and drawn to the effective responsiveness
of social economy to global challenges, policymakers worldwide are taking
into consideration its functions when articulating their discourse and designing
public policies that will shape the agendas in the coming years. This discourse
and these policies are the result of the institutionalization, understood as the
process by which socio-economic ideas and realities transition from being
informal, unstable, and immature to crystallizing into rules, resources, and
organizational structures. Although numerous authors have formulated their
own definitions around this concept, a homogeneous definition has not been
identified.
From academic literature, some authors have contributed to promoting
the institutionalization of social economy through the study of international
statistics (Bouchard & Chaves, 2022) and the comparison of the state of social
economy and its public policies in European Union member states (Chaves &
Monzón, 2018a) and in Latin America (Coraggio, 2015; Correa, 2022). The
130 Belén Catalá Estada · Teresa Savall Morera · Rafael Chaves-Ávila
institutionalization status of social economy has also been compared between
specific countries (Bassi & Fabbri, 2020; Bidet & Richez-Batesti, 2022; Calvo et
al., 2020, Trasciani et al, 2024), specific practices (Opincaru, 2021) and concepts
related to social economy (Chaves & Monzón, 2018b).
Some authors have also analyzed the process of change and implementation of
social economy towards a more favorable environment, from a broad perspective
of public policies. Utting (2017) notes that there are three main tools to implement
such a change: first, the existence of several laws that recognize the social economy
and support emerging sectors related to it. In this sense, the author asserts that
States that try to create an enabling environment for SSE operate on multiple fronts
related to legislation. Second, the existence of government institutions, where “the
trajectory of institutionalization involves the emergence of ministries or agencies
that integrate multiple initiatives related to the regulation and promotion of SSE”
(Utting, 2017: 26). Third, the presence of government policies and programs,
where they should adopt a holistic perspective that recognizes the concept and
the role that the social economy plays in society.
Similarly, Chaves (2010) expresses that to create a favorable environment for
the consolidation of the social economy, two types of measures are needed: first,
institutional measures that contribute to the recognition of social economy entities
as actors capable of operating in the market. And secondly, cognitive measures
to improve the visibility and dissemination of the social economy, thus increasing
its recognition.
Other authors, such as Laville et al. (2006), identify elements that have
contributed to the institutionalization of social enterprises, such as the presence
of these entities at the center of public policies (public schemes) or the existence
of legal forms that recognize them as distinct. Additional contributors, such as
Mendell & Alain (2015), identify the commitment and capacity of the government
as an element for the consolidation of the social economy. On the other hand,
Astudillo (2020) determines that to generate a process of institutionalization of
the social economy, laws and policies must be incorporated in the state, as well as
generate legitimacy for the movements belonging to the social economy. Finally,
authors such as Correa (2022) identify integration organizations within the private
institutional framework. These are representative entities in which the interests of
the social economy are strengthened.
From the literature it is possible to identify five components that can be used
to assess the degree of institutionalization of the social economy: (1) its awareness
and recognition, (2) its legal regulation, (3) government bodies and departments
promoting social economy, (4) plans, policies and programs for the development
of the social economy, and (5) participation in representative bodies. Table 1 shows
the relationship with the main theoretical contributions of each of the elements.
The combination of these elements and the way they are developed provides a
glimpse of different strategies in terms of institutionalization processes. According
to Utting, there are reformist and transformative strategies. The former is based
on relegitimizing institutions and achieving conventional development goals, while
the transformative approach “seeks to enable SSE not only as an instrument of
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crisis management and state restructuring, but as an alternative approach to
development” (Utting, 2017: 25). The latter perspective abandons the idea of
focusing only on policy intentions and focuses more on implementation.
Consequently, and in the context of a notable increase in international
institutional recognition of the social economy due to its positive role in
addressing global challenges and crisis, the question arises as to which are the
mainstreaming practices in terms of social economy institutionalization, based
on the five elements identified in the literature. Through the exploration of a
case study, exemplary practices are identified.
3. mEthodology
To develop this multidimensional analysis of assessing practices of social
economy institutionalization, it is employed a qualitative methodology, since
the object of the research is a complex social phenomenon involving multiple
actors and dimensions (Yin, 1994). Specifically, we use the case study technique
since it allows focusing on complex aspects of the analyzed reality (Perren &
Ram, 2004) and obtaining empirical evidence to enhance the robustness of
the findings (Eisenhardt, 1989).
The case under analysis is the Spanish one, chosen after reviewing major
international documents on social economy.1 All these documents provide
national-level recommendations for countries to apply their respective norms,
1 The documents consulted were: European Action Plan for Social Economy of December 9, 2021
(European Commission, 2021); the OECD Council Recommendation on Social Economy and Social
Innovation of June 10, 2022 (OECD, 2022); the International Labour Organization resolution on
Social and Solidarity Economy and Decent Work of June 16, 2022 (ILO, 2022); the Transition Pathway
for Proximity and Social Economy Ecosystem of November 14, 2022 (European Commission, 2022);
the United Nations Resolution for the Promotion of Social Economy for Sustainable Development of
April 18, 2023 (UN, 2023); and the EU Council Recommendation on Developing Social Economy
Framework Conditions of November 27, 2023 (EU Council, 2023).
tablE 1: comPonEnts of InstItutIonalIzatIon of socIal Economy
Components Contributions
Awareness and recognition Chaves (2010)
Astudillo (2020)
Level of legal regulation
Utting (2017)
Laville et al., (2006)
Astudillo (2020)
Government bodies and departments promoting social economy.
Utting (2017)
Mendell & Alain (2015)
Plans, policies, and programs for the development of social economy
Utting (2017)
Chaves (2010)
Laville et al, (2006)
Participation in representative bodies Correa (2022)
Source: Own creation
132 Belén Catalá Estada · Teresa Savall Morera · Rafael Chaves-Ávila
indicating that these best practices should be sought and framed at the state
level. Spain has been recognized as a territory where social economy is widely
acknowledged, ahead of countries like Belgium, France, Luxembourg, or
Portugal (Chaves & Monzón, 2018a:35). It has pioneered legislative efforts
with Law 5/2011, March 29; it is one of the leading countries in terms of
social economy entities and job creation; and recent actions further solidify
its position as a global benchmark in the field of social economy. For these
reasons, Spain has been considered as the case study.
To observe the level and practices of institutionalization of social economy
in Spain, the five components previously identified in the literature have been
used. Building on this analytical framework, a deeper study is conducted
on each of the five components to provide empirical evidence regarding
best practices in social economy institutionalization. For data collection,
documentary analysis has been employed, including the examination of
legislation, published reports, websites of various institutions and entities in
the social economy sector, professional reports, and databases. The main
documents consulted can be found in Appendix I.
4. rEsults
4.1 InstItutIonalIzatIon of thE socIal Economy basEd on thE sPanIsh casE.
1. Awareness and recognition
The level of knowledge and recognition of a subject is a key element in the
institutionalization processes, as it contributes to credibility and academic and
social reputation. In the field of social economy, its level of recognition is not
uniform across all countries (Bassi & Fabbri, 2020).
In the case of Spain, the recognition of the concept of social economy, both
by public authorities, businesses and federations, and the academic world, is
the most advanced in Europe (Chaves & Monzón, 2018a:35). This is because
in Spain, social economy is the prevailing concept compared to other emerging
ideas such as social enterprise or the third sector, among others (Chaves &
Monzón, 2018a:36)
Regarding training and research, Spain enjoys a high level of visibility and
recognition. This has become more evident after the reform of the Organic
Law 2/2023, of March 22, on the University System, which incorporates
various formulations emphasizing the significance and relevance of the social
economy. The new law includes social economy in the list of functions that
should guide the action of universities and recognizes the important role played
by cooperative universities. Social economy training in Spain is present in more
than 65% of universities. Notably, the ENUIES network, formed by centers
in 21 universities, encompasses around 60% of social economy education in
Spain (Díaz, 2023).
In terms of political agenda, closely related to the element of organic
institutionalization, the current government of Spain has included prominent
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mentions of the social economy in its most recent political programs, with
18 explicit measures in the case of the SUMAR party (Sumar, 2023) and 12
explicit measures in the case of the Spanish Socialist Workers’ Party (PSOE,
2023).
Another noteworthy element of global reference recognition in Spain
is the strong presence of social economy ecosystems led by Mondragón in
the Basque Country (Ruiz & Bretos, 2023) and followed by emerging ones
such as the Valencian (Catala et al., 2023; Catala et al, 2024) or the Galician
ecosystem (Bastida et al., 2023).
2. Level of legal regulation
Spain has a high level of legal institutionalization of the social economy, as
it was the first country worldwide to approve a social economy law in 2011.
Additionally, it is the country with the most regional laws on social economy,
including Galicia (Law 6/2016, May 4), Aragón (Law 7/2022, December 1),
Canarias (Law 3/2022, June 13), La Rioja (Law 9/2022, July 20), and a draft
law in Catalonia currently in the public information phase. Almost all other
autonomous communities also have regional laws on cooperatives and other
entities specific to the social economy, such as associations or foundations.
The national Law 5/2011 is a crucial element in institutionalizing the social
economy as it defines the concept, lists its guiding principles, and characterizes
the entities that can be part of it. Moreover, the legal norm recognizes the
promotion, stimulation, and development of the social economy as a task
of general interest and enumerates the main incentives that entities or their
members can benefit from.
3. Government bodies and departments promoting social economy
In terms of political organization, the Spanish government sets a
paradigmatic precedent by elevating the social economy to ministerial status
with the creation of the “Ministry of Labor and Social Economy” in 2020, along
with the “State Secretary of Social Economy”, further institutionalized by the
assumption of the Second Vice Presidency of the Spanish government by the
Minister responsible for this portfolio in 2021. This development is shared
with countries like France and Luxembourg. In November 2023, this ministry’s
position was reaffirmed until 2027.
Another notable element has been the establishment of the first “Special
Commissioner for the Social Economy”. This is an interministerial body,
organically linked within the Ministry of Labor and Social Economy, aimed at
promoting and coordinating the Strategic Project for Economic Recovery and
Transformation (hereinafter PERTE) of the Social Economy and Care, involving
thirteen ministries.
Furthermore, it is noteworthy that in Spain, since 1999, there has been the
figure of the Council for the Promotion of the Social Economy. This is the main
advisory and consultative body in this matter, consisting of representatives
from both public and private entities representing the sector.
134 Belén Catalá Estada · Teresa Savall Morera · Rafael Chaves-Ávila
Finally, at the regional level, almost all autonomous communities include
the social economy in their general directorates, to improve the application
of public policies at the different levels of government and ensure better
coordination with the national government.
4.Plans, policies, and programs for the development of social economy
One of the key indicators of institutionalization is the presence of public
plans, policies, and programs. Spain has a considerable number of them
specifically created with the objective of strengthening the social economy,
whether through the transposition of European regulations at the national,
regional, or local levels.
A prominent element has been the Spanish Social Economy Strategy
2023-2027, approved on 11.04.2023 by the Council of Ministers, succeeding
the previous strategy framed in the years 2017-2020. The strategy outlines
the weaknesses, threats, strengths, and opportunities of the social economy
currently, defines its mission, vision, and strategic axes, and is distributed
across 18 lines of action. These include topics such as visibility, recognition,
and presence in social economy institutions; statistics and measurement of the
social economy; internationalization; innovation; strengthening cooperation;
entrepreneurship; social economy in green and digital terms; gender equality
and inclusion of groups with difficulties accessing employment; generational
succession; and contribution to the Sustainable Development Goals (SDGs)
(SSES, 2023).
The strategy is aligned with the creation by the Spanish government of
the PERTE for the social economy and care. This plan, funded with Next
Generation European funds2, has three main objectives: (1) to boost and
develop the Spanish social economy and its transformative potential; (2) to
develop and promote advanced care services, accessible and person-centered;
and (3) to create a “Cutting-edge Hub” as a reference in social economy for the
transfer and exchange of knowledge with social economy entities. The PERTE
was approved by the Council of Ministers on 31.05.2022, it lasts until 2026,
and was endowed with 808 million euros at the time of its creation, of which
100 million are earmarked exclusively for the social economy (PERTE, 2022).
At the same time, another sign that reinforces the interest in supporting the
social economy is the increase in funding aimed at promotion. This is channeled
through traditional policies, aid for improving employment in cooperatives and
worker-owned companies, the budget for which has experienced a growing
increase in recent years. Figure 1 illustrates this evolution.
2 The next generation funds are a European plan created for the economic and social recovery from
the Covid-19 crisis, in which member countries receive certain amounts of money and apply them
according to their own discretion. Spain has decided, among other objectives, to dedicate it to the
social economy. To broaden information about them, consult https://next-generation-eu.europa.eu/
index_en
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At the regional level, most Autonomous Communities have developed plans
for the strengthening of the social economy based on two main premises:
alignment with the national strategy and adaptation to the specificities of
each region. However, some territories have particularities, such as Cantabria,
Galicia, or Catalonia, which do not present explicit regional plans but promote
the social economy through other means and structures. Table 2 provides a
compilation of regional plans and strategies.
Finally, at the local level, there are some cities that have also promoted
individual plans, such as Barcelona (Plan for the Promotion of Social and
Solidarity Economy 2021-2023), Madrid (Strategy for Social and Solidarity
Economy of the City of Madrid), Zaragoza (Strategy for Promoting Social
Economy in the city of Zaragoza 2018-2022) or San Cristóbal de La Laguna
(RedESS, Social and Solidarity Economy Plan of La Laguna).
5. Participation in representative bodies
In recent years, there has been an evident high degree of Spanish
participation in international institutions catalyzing the social economy.
Specifically, Spain has led the approval process of the Resolution Promoting
the Social and Solidarity Economy for Sustainable Development of the United
Nations (UN, 2023) and the Council recommendation on developing social
economy framework conditions (EU Council, 2023), both of which have been
significant milestones for the social economy. Throughout its history, Spain has
been characterized as a promoter of all kinds of declarations in favor of the
social economy.
Another manifestation of the Spanish participation is evident through
holding the presidency of Social Economy Europe, the leading organization in
Europe for social economy, and the secretariat of the European Parliament’s
fIgurE 1: budgEtary EvolutIon of aId to suPPort EmPloymEnts In cooPEratIvEs and workEr-ownEd
comPanIEs.
€ 9,402,136
€ 9,521,178
€ 10,234,312
€ 9,466,848
€ 15,067,011
€ 21,499,474
€ 26,595,181
€ 25,916,663
€ 20,092,789
€ 51,400,809
€ 51,393,127
€ 0
€ 10,000,000
€ 20,000,000
€ 30,000,000
€ 40,000,000
€ 50,000,000
€ 60,000,000
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
initial budget (in euros)
Source: Own creation based on Ministry of Labor and Social Economy statistics.
136 Belén Catalá Estada · Teresa Savall Morera · Rafael Chaves-Ávila
Social Economy Intergroup. Additionally, Spain holds the presidency of the
Ibero-American Observatory of Employment and Social and Cooperative
Economy (OIBESCOOP), which brings together researchers and experts from
Latin American countries, Spain, and Portugal. And finally, the leadership
of the European Mediterranean Social Economy Network (ESMED), which
coordinates the actions of countries from both the northern and southern
Mediterranean.
There are also other private entities contributing to the leadership of the
social economy by assisting in improving and structuring its entities and voicing
key concerns on the subject. The primary institution assuming this role is the
Spanish Business Confederation of Social Economy (CEPES), encompassing 32
partners from across Spain, characterized by grouping various social economy
entities, highlighting its network nature. Other prominent entities include the
Third Sector Platform, which brings together 28,000 entities working in favor
of people at risk of social exclusion, poverty, or vulnerability.
In the field of research, the presence of CIRIEC-Spain stands out as the
most dynamic national section of CIRIEC International in terms of scientific
production and the development of European and international projects, such
as Chaves and Monzón (2018a). Similarly, the presence of a strong academic
apparatus is relevant for its role in mediating and facilitating dialogue between
the sector and the public administration, and for the role that university plays
tablE 2: rEgIonal Plans for thE PromotIon of socIal Economy In sPaIn
Andalucia Strategic Plan for the Promotion and Modernization of the Social Economy in Andalu-
sia (2023-2026)
Aragon Aragon Plan to Promote the Social Economy in Aragon
(2022-2025)
Asturias Social Economy Strategic Plan (PEES) (2022-2025)
Cantabria No explicit plan. Promotion based on programmes.
Castilla y León Strategic Plan for the Social Economy
(in process)
Castilla-La Mancha Castilla-La Mancha Social Economy Strategic Plan (2022-2025)
Cataluña No explicit plan. Strategic Plan Barcelona. Work through the Network of Cooperative
Athenaeums.
Comunidad Valenciana Plan for the support and promotion of cooperativism in the Valencia Region (2021-
2022) FENT COOPERATIVES
Extremadura Plan for the Promotion of Social Economy entities in Extremadura
Galicia No explicit plan. Working through the Eusumo Network.
Islas Baleares Master Plan for the Social Economy of the Balearic Islands (2018-2022)
Islas Canarias Canary Islands Social Economy Strategy (in process. Derived from the law.)
La Rioja Rioja Plan for Boosting the Social and Solidarity Economy (in process. Derived from
the law.)
Madrid No explicit plan exists. Existence of a local plan for the municipality of Madrid
Murcia V Regional Pact for the Excellence of the Social Economy (2021-2024)
Navarra II Integral Plan for the Social Economy (2021-2024)
País Vasco (Euskadi) Interdepartmental Strategic Plan for the Social Economy (2021-2024)
Source: Own creation
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in the institutionalization of the subject in the face of various sensitivities arising
from changes in government.
At the European level, Spain holds head positions such as the Executive
Director of EMES European Research Network, and there are also Spanish
representatives in the expert group of the European Commission on social
economy and social enterprises (GECES 2018-2024) and the UN Inter-Agency
Task Force on Social and Solidarity Economy. All these manifestations are a
demonstration capacity legitimized by the range of measures deployed in
other areas.
The combination of these elements’ underscores Spain leadership in the
institutionalization of the Social Economy on a global scale. Table 3 summarizes
the main contributions.
5. dIscussIon and conclusIon
The social economy has emerged as a recognized model for its resilience
in times of crisis and for addressing global challenges through social and
community-engaged responses (Julia et al, 2022). Government policies,
being aware of its positive role, have supported its development, fostering
a prolific period of institutionalization of the social economy. Recent
international documents in favor of the social economy emphasize improving
the institutionalization process. For example, the resolution of the International
tablE 3: InstItutIonalIzatIon framEwork of thE socIal Economy In sPaIn
Awareness and recognition
- Uniform identification of the concept
- High degree of training and research.
- Inclusion of social economy in the new university law.
- Broad presence in the political agendas of the parties in government.
- Presence of leading ecosystems.
Level of legal regulation
- First social economy law globally (2011).
- Extensive presence of regional laws in social economy: Galicia (2016), Aragon
(2022), Canary Islands (2022), and La Rioja (2022).
Government bodies and
departments promoting social
economy,
- Establishment of the Ministry of Labor and State Secretariat for Social Eco-
nomy (2020).
- Creation of the Special Commissioner for Social Economy (2022).
- Existence of the Social Economy Promotion Council.
- Existence of General Directorates of Social Economy in nearly all Autonomous
Communities.
Plans, policies and programs
- Spanish Social Economy Strategy 2023-2027.
- PERTE of Social Economy and Care (2022-2026). 808M€.
- Increasing of financial budget promoting social economy.
- 13 regional plans for promoting social economy.
- Existence of local plans in strategic cities (Madrid, Barcelona)
Participation in representative
bodies
- Leading role of the government in promoting international resolutions.
- Presidency of Social Economy Europe.
- Presidency of OIBESCOOP.
- Leadership of CIRIEC-Spain.
- Existence of representative organizations (CEPES, Third Sector Platform).
- Outstanding presence in international institutions (GECES, UNTFSSE)
Source: Own creation
138 Belén Catalá Estada · Teresa Savall Morera · Rafael Chaves-Ávila
Labour Organization calls for “strengthening the institutional development of
SSE entities” (ILO, 2022), and the Organization of Economic Co-Operation and
Development for “creating supportive institutional fraweworks” (OECD, 2022).
According to the Memorandum of the proposal for a Council recommendation
on developing social economy framework conditions (EU Council, 2023) some
of the problems and challenges that social economy face are motivated by
(1) a lack of clarity around the principles and scope of the social economy,
(2) an insufficient recognition of the social economy added value, (3) a lack of
consistency of support measures, (4) the fragmentation of legal frameworks,
(5) a limited administrative and policy capacity of Member States, (6) a lack
of data and statistics on the sector, and (7) a lack of tailored funding for social
economy entities. These problems are directly caused by a lack of further
institutionalization, which is why it is important to deepen the analysis and
highlight practices in institutionalization that serve to alleviate the problems
detected. From literature have been identified five components with which to
analyze the institutionalization of the social economy.
The case of Spain stands out among countries where the social economy
has a significant presence, and it is recognized for being a territory that has
promoted initiatives in favor of the social economy, which have proven to be
paradigmatic examples of institutionalization practices (Chaves & Monzón,
2018a). In this sense, and in response to the research questions posed, Spain
has a high level of recognition of the social economy both at the academic
and institutional levels, with a significant presence in the political agenda
and a strong presence of social economy ecosystems. Additionally, Spain is
a leader in legislative matters and in terms of organic institutionalization, with
the creation of various innovative figures in support of the social economy,
such as the Special Commissioner. It has numerous plans, strategies, and
policies in various government areas, with particular emphasis on the political
and economic relevance of the Special Project for the Social Economy and
Care (PERTE). Finally, Spain exercises external institutional leadership through
its active participation in international institutions and prominent roles in
European organizations. These elements reflect Spain’s leadership in the
promotion, visibility, and recognition of the social economy on a global scale.
From the results, along the lines of Utting’s (2017) between reformist and
transformative strategies, two types of institutionalizations can be distinguished:
socio-cognitive institutionalization and political institutionalization,
reflecting the transition process between the narrative phase and the actual
implementation phase of social economy public policies.
Socio-cognitive institutionalization refers to the crystallization, both in
social imagination and in the scientific and legal realms, of a set of ideas that
highlight the virtues of social economy. This type of institutionalization has
overcome significant barriers prior to this pre-institutional phase. On one hand,
it has managed to consolidate the term “social economy” after a trend towards
conceptual fragmentation, where different concepts and paradigms competed
for that cognitive space. On the other hand, it has brought visibility to the socio-
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economic utility potential of social economy, i.e., its functionality and positive
impacts. Within this type of institutionalization, the current international
resolutions act as soft law and represent progress and a preliminary step to
the second type of institutionalization.
Political institutionalization or the institutionalization of public policies for
the social economy refers to the definition of the scope of public action in the
field of social economy – something that has already advanced in the socio-
cognitive institutionalization phase. It involves designing the organizational
architecture that the policy will have: resources, its own organizational
structure, internal spaces within governments that are sectoralized, funding
and human resources, the regulatory framework that will govern it (a law, a
strategy – multi-year plans, articulated in measures), their durability, and the
nature of the forms of action. This type of political institutionalization can entail
various degrees of implementation. Therefore, a future step requires verifying
the degree of impact that these public policies, programs, laws, or new
organizations have on certain variables and the extent to which they contribute
to the development of the social economy.
The phenomenon of Spain consolidating this leadership is closely tied
to the convergence of these two types of institutionalizations, moving from
words to actions, following the guidelines set globally in key international
resolutions. The act of engaging in these practices grants legitimacy and a
capacity for demonstration and dissemination compared to others, reinforcing
the leadership process. This fact is especially notable in a context where most
countries are still in an early stage of socio-cognitive institutionalization (Chaves
& Monzón, 2018a; Correa, 2022; Utting, 2017). Given the differences in the
degrees of institutionalization in various countries, it is relevant to identify
these practices for their replicability and scaling in other territories.
In this line, this article is relevant for various reasons. Firstly, because it
provides novel evidence of practices in institutionalization when the literature has
hardly addressed the issue. Secondly, because it sets a theoretical classification
of elements of institutionalization of the social economy. And thirdly, because it
establishes examples for other countries that, following the recommendations
of international institutions, should begin to promote strategies, policies, and
programs to enhance the awareness of the social economy. Considering this,
and in the line of formulating policy recommendations, other territories should
begin to design the content of social economy public policies and to concretize
them in a cross-cutting political action framework that includes many areas of
government and different types of financial and human resources.
Despite its relevance, this study has some limitations. The institutionalization
practices analyzed have been compared with other countries based on studies
that are not entirely up-to-date, or that only analyze some of them, as is the
case with Chaves & Monzón (2018a) concerning European countries. Therefore,
it is proposed as a future line of research to enhance the comparability of
countries through the analysis practices under the dimensions stated in the
present article.
140 Belén Catalá Estada · Teresa Savall Morera · Rafael Chaves-Ávila
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144 Belén Catalá Estada · Teresa Savall Morera · Rafael Chaves-Ávila
aPPEndIx I: data collEctIon
Source type Main documents consulted
Legislation
Resolution Promoting the Social and Solidarity Economy for Sustainable Development (UN,
2023)
Council recommendation on developing social economy framework conditions (EU council,
2023)
Law 5/2011, March 29, on Social Economy
Organic Law 2/2023, of March 22, on the University System
Law 6/2016, May 4, of the Galician social economy
Law 7/2022, December 1, of the Aragon social economy
Law 3/2022, June 13, of the Canary Island social economy
Law 9/2022, July 20, on social and solidarity economy of La Rioja.
Programs/ Plans
Spanish Social Economy Strategy 2020-2021, 2023-2027.
PERTE for the social economy and care in the framework of the Recovery Plan.
Social Economy Regional plans (see table 3).
Plan for the Promotion of Social and Solidarity Economy 2021-2023 of Barcelona.
Strategy for Social and Solidarity Economy of the City of Madrid.
Strategy for Promoting Social Economy in the city of Zaragoza 2018-2022.
RedESS, Social and Solidarity Economy Plan of La Laguna.
Websites
https://single-market-economy.ec.europa.eu/sectors/proximity-and-social-economy/social-
economy-eu/social-enterprises/expert-groups_en
https://unsse.org/ UN Inter-Agency Task Force on Social and Solidarity Economy (UNTFSSE)
https://planderecuperacion.gob.es/como-acceder-a-los-fondos/pertes/perte-de-economia-
social-y-de-los-cuidados
https://prensa.mites.gob.es/WebPrensa/noticias/laboral/detalle/4188
https://www.cepes.es/
http://www.plataformatercersector.es/es/default
https://www.socialeconomy.eu.org/
https://www.oibescoop.org/
https://www.cepes.es/international/mediterranean/esmed-network&lng=en
https://movimientosumar.es/wp-content/uploads/2023/07/Un-Programa-para-ti.pdf
https://www.psoe.es/media-content/2023/07/PROGRAMA_ELECTORAL-GENERALES-2023.pdf
Databases Ministry of Labor and Social Economy Statistics.
CIRIECSTAT – Statistical Portal of Social Economy
Source: Own creation
