Definition of

Social economy

People in a circle joining hands in the center

The social economy encourages citizen participation and collective decision-making.

The social economy is an economic model that prioritizes collective well-being and solidarity over individual profit, focusing on democratic management, sustainability and social inclusion. This approach includes organizations such as cooperatives, mutual societies, associations and foundations that seek to generate positive social impact while maintaining economic activity.

The social economy is defined by a series of characteristics that distinguish it from traditional economic models. These include:

democratic management : decisions are made in a participatory manner, promoting equality among members of the organization;
priority to collective well-being : the main objective is not to maximize profits, but to satisfy people's needs;
sustainability and social justice : we seek to balance the economic, social and environmental dimensions to promote equitable development;
solidarity and cooperation : organizations promote values of mutual help, social integration and support for the most vulnerable sectors;
social and ethical responsibility : includes practices that benefit both the community and the environment, respecting human and labor rights;
diversity of legal and organizational forms : non-profit associations, cooperatives, mutual societies, foundations and social enterprises are representative examples.

Sustainability and environment

Sustainable production and food sovereignty

Sustainable production seeks to balance economic growth with the conservation of natural resources. Within this approach, food sovereignty stands out as a right of communities to decide about their food production and consumption systems. This model supports small producers and encourages responsible agricultural practices.

Ecosystem conservation

The preservation of biodiversity and ecosystems is crucial for the social economy. Projects that combine environmental conservation with community development, such as natural parks managed by cooperatives, are inspiring examples of this practice.

Renewable energies and energy efficiency

Energy cooperatives and clean energy transition programs, such as solar and wind, are leading the fight against climate change. In addition, energy efficiency in homes and businesses reduces costs and environmental impact.

Community waste management and social recycling projects not only protect the environment, but also generate employment and inclusion. Models such as the circular economy enhance these efforts.

Sustainable and resilient cities

Sustainable urban initiatives, including green roofs, efficient public transportation and community spaces, represent fundamental pillars to create healthier and more equitable environments.

Local markets connect producers with communities and promote responsible consumption practices.

The social economy has practical applications that cover various sectors:

cooperative banks : member-run financial institutions that prioritize community support over profits;
social enterprises : businesses that combine social and environmental objectives with economic sustainability;
cooperative housing and community transportation : models that promote collaboration to meet basic needs in an accessible way;
barter and social currencies : alternatives to the traditional monetary system that encourage local economy and fair exchange;
responsible tourism : initiatives that respect local cultures and minimize environmental impact;
community agriculture : as well as urban community gardens, they are projects that strengthen food security and the connection with nature in cities;
social and solidarity economy networks : spaces for exchanging services and collaboration between organizations to share resources and knowledge.

Social innovation drives creative solutions to social and environmental problems. Examples include technologies for access to drinking water, collaborative economy applications and digital inclusion projects.

The development of capabilities in the social economy is essential for its expansion. Educational programs, courses and workshops help train community leaders and managers of sustainable projects.

Free and open culture

Free software, open culture and open access to research reinforce the principles of collaboration and transparency. These initiatives allow communities to take advantage of technological advances without depending on large corporations.

Forums, publications and recognitions

Events such as international forums and specialized publications encourage the exchange of ideas and good practices in social economy. Additionally, awards and recognitions highlight outstanding projects, motivating others to follow their example.

The social economy encompasses various approaches, each adapted to the needs of communities:

collaborative economy : based on sharing resources and services through platforms that connect individuals;
circular economy : promotes reuse and recycling to reduce environmental impact and create sustainable value;
economy of the common good : aimed at maximizing social and environmental benefit, placing ethics at the center of economic decisions;
care economy : focused on recognizing and valuing work related to caring for people and communities;
regenerative economy : seeks to restore and regenerate ecosystems, promoting economic practices that benefit the environment;
proximity economy : favors local production and consumption to strengthen local economies and reduce environmental impact;
solidarity economy : combines principles of social justice, sustainability and equity, especially supporting the most vulnerable.

Financial strategies and tools

Ethical finance and microfinance

Ethical finance, such as cooperative banks, offer alternatives to traditional banking by prioritizing projects with positive social impact. For its part, microfinance supports small entrepreneurs in vulnerable communities.

Crowdfunding and collective savings

Social crowdfunding allows communities to finance projects through small contributions from many people. In parallel, collective savings schemes strengthen the financial autonomy of their participants.

Impact investing and social bonds

Impact investing channels resources towards projects with clear social and environmental objectives. Social impact bonds are key tools to finance programs in sectors such as education, health and housing.

Certifications and social alliances

Social and environmental certifications guarantee that products and services meet high ethical standards. Alliances between producers and consumers strengthen these responsible value chains.

Renewable energies contribute to environmental sustainability and community self-sufficiency.

Citizen participation and economic democracy

The social economy encourages the active participation of people in economic decision-making, promoting models of economic democracy. This approach seeks to empower citizens and communities to be protagonists in the management of resources and the construction of sustainable development.

Women's empowerment and gender equality

A key aspect of the social economy is the promotion of gender equality. Through the empowerment of women and the recognition of their role in communities, opportunities are generated to reduce structural inequalities.

Labor rights and decent work

Respect for labor rights is a fundamental principle. Initiatives such as cooperatives and unions within the social economy ensure fair working conditions, promoting decent work as the basis of a more equitable society.

Community management and endogenous development

Self-management and endogenous development reinforce the capacity of communities to organize and manage their own resources. These strategies prioritize economic growth from within, strengthening the social fabric and reducing external dependence.

International cooperation and global networks

The social economy is not limited by borders. International networks and social movements have made it possible to share experiences and good practices between countries, expanding the scope of their benefits. Initiatives such as the United Nations Global Compact support collaboration to achieve common goals.

Reduction of inequalities and economic justice

The social economy is a powerful tool to combat economic and social inequalities. By focusing on the fair redistribution of resources and opportunities, it contributes to the construction of a more cohesive and fair society.