The Social Economy as Scholarly Discipline and SocioEconomic Practice

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The Social Economy as Scholarly Discipline and
Socio-Economic Practice

• Benoît Lévesque
• Associate Professor
• UQÀM and ENAP
• levesque.benoit_at_uqam.ca
• CSE Hub
• Montreal, 13 November 2006

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Presentation Outline

• From utopia to disciplinary approaches
• Contrasting practices based on convergence
  (France and Québec)
• Theoretical constructions for analyzing the
  social economy (SE)

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From utopia to so-called scientific disciplines
4
Theorization of the political sphere and the
economic sphere
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Two utopias?

• Liberalism
• Reason (a science)
• Nature (of things)
• Individuals
• A posteriori demonstration

• Utopianism
• Reason (a science)
• Nature (human)
• Association
• Construction a priori
• Current disorder
• Proposal (utopia) Construction appealing to the
  imagination.

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Sociology and social economy

• Le Play (1806-1882)
• SE science of peace and of the happy life,
  volunteer and contractual relationships,
  improvement in the physical and moral state of
  the population
• Founded the Société déconomie sociale
  (1856-1914)
• Paris World Exposition (1855 1867) Journal La
  Réforme sociale (1881)
• Weber (1864-1920)
• Sozialokonomische Wissenschaft (beginning in
  1904)
• Economic events Institutions with economic
  objectives
• Non-Economic phenomena (religion) though
  economically relevant
• Phenomena conditioned by the economy
• Wirtschaftssoziologie (beginning in 1910)
• Durkheim (1858-1917) during his stay in Germany
  (1886)
• Social economy (Volkswirtschaft) -
  institutionalism
• Another definition of the economy history,
  institution, moral fact
• Socio-Economics (Etzioni)

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Economics and SE

• Charles Gide (1847-1932)
• Economist
• Before SE an alternative approach
• After SE a complementary approach to economics
• Social economy actor
• World Exposition in Paris
• Actor in cooperative sphere (1886) École de
  Nîmes, FNCC (1902), unification of the
  cooperative movement (1912), etc.
• Leon Walras (1834-1910)
• SE that part of the science of wealth that
  deals with the distribution of wealth between
  individuals and the State, and that makes use of
  the principle of justice et non pas charity,
  fraternity, voluntary association
• Social Economics (Gary Becker) economics of
  social phenomena

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Contrasting practices -- inspired by a variety
of ideas(The cases of France and Québec)
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Reformulation of utopia?

• Four SE schools (1890-1920)
• Socialist school (Jaurès)
• Liberal school self-help by individuals and
  economic advantages
• Christian socialist school social doctrine of
  the Church (1891)
• Solidarity school a cooperative republic (Gide)
• From utopia to the third way (reorientation
  toward cooperation)
• Cooperation as an end (as utopia)
• From the community to the cooperative Republic
  (State as a form of coop.)
• From the cooperative Republic to a cooperative
  sector (1932) alongside a public sector
  (cooperation in the general interest)
• Cooperation as a means socialist, Christian and
  liberal views

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Return of the social economy (1975)

• a demand from cooperatives and mutuals (mutual
  associations, mutual benefit societies)
• Redevelopment of relationship with the State
  (e.g. mutuality)
• Cooperatives and mutuals in compwetition with the
  private sector
• Need for legislative fine-tuning and external
  financing
• A search for meaning death of the utopian
  republic
• Choice of the term SE historical reference
• Support from socialists (Rocard, Delors), Marxism
  in crisis
• Extensive consultation among stakeholders
• Recognition strategy
• Between the major sectors (cooperatives and
  mutuals)
• By the public authorities of France (1981 IM
  delegation to the ES)
• By the EEC, ILO, CIRIEC International and other
  countries (1978)
• Centripetal forces and centrifugal forces

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Centripetal forces and centrifugal forces

• 1800-1850 1850-1901 1890-1920
  1920-1970 1980-2000

M
M 1852, 1898
Multi-functional associations
C 1894
C
SE
SE
A 1901
A
SSE
TA
1884
TA
Political Context Economical context
Lévesque according to Vienney
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Tensions and revivial of the SE (1990-2000)

• For a European status for the SE
• European cooperative status
• Mutuals and associations without specific
  recognition
• Remobilization based on the solidarity-based
  economy (1990)
• Solidarity-based economy, opposition to the SE
  established
• Promoters NMS, Green Party and local initiatives
• Sectors the emerging SE and relational services
• Labour-market integration projects
• Proximity services
• Social enterprises and solidarity (social)
  cooperatives
• Alternative rather than complementary
• Toward a compromise (2000) the social and
  solidarity-based economy?
• Interdepartmental delegation
• Revue internationale de lÉS (an international
  review on the SE)
• CIRIEC France

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Emergence and recognition in the Quebec context

• Global context
• The Quebec model of voluntarist and corporatist
  development
• A plural economic structure importance of
  collective enterprises (government corporations
  and cooperatives)
• Strong unions, community and womens groups
• Limited consultation summits, forums (e.g. job),
  conventions, symposia (cooperation, rural
  society, community-based, etc.)
• Immediate context Summit on the economy and
  employment (1996)
• Exchange of ideas for a zero deficit and job
  creation
• Traditional social partners womens and
  community groups
• Chantiers (focussed working groups) over six
  months, including a working group on the SE.

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Founding compromise emerging SE

• Government budgetary cuts and job creation
• Community groups a fully-fledged element
• Womens groups quality jobs war on poverty
• Cooperatives a new legitimacy worried about
  image
• Unions reject job substitution seek jobs with
  a future
• Employers say YES to a downsizing of the State,
  discover the SE
• Independent community action refuses inclusion
  in SE
• Consequently, a SE development plan
• Market SE non-market SE
• Emerging SE, pilot projects or experienced
  projects
• Labour-market integration, one of several types
  of SE
• Objectives job creation and meeting unfulfilled
  needs
• SE stakeholder in development model
• Independent community action separate
  financing
• Womens groups a Fund to wage war on poverty
  through labour market integration

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Development plan of the SE working group
emerging SE (1996-2001)

• Evolution of the emerging SE
• 300 projects mainly in emerging sectors
  (cooperatives and associations)
• Identification of promotion groups
• Objective 20,000 jobs
• Development tools
• Capitalization RISQ
• Training CSMO-ESAC
• Research ARUC-ÉS
• Technical resources for monitoring and coaching
• A flexible governance structure
• For 2 years at first (1996-1998), under the
  responsibility of the premier
• Support from the Mouvement Desjardins and the CCQ
  (Quebec Cooperation Council)
• In 1999, this structure is transformed into an
  independent body
• CCQ refuses to join
• Union representation
• CRES representation
• Representation of emerging SE sectors

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One definition SE as inclusive

• The question of definition
• The Québec institutional definition three
  aspects
• A definition of economy and of social
• economy substantive (inclusion of non-market
  economy)
• social welfare and citizenship
• Ethical principles
• The Walloon influence
• The cooperative influence
• Legal statuses cooperatives, mutuals and
  associations
• For the inclusion of the emerging SE
• Quebec an inclusive definition, but a mandate
  and a development/growth plan for the emerging SE
• Canada plays a part in the emerging SE social
  cohesion and war on poverty

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Observations concerning the 1996-2006 period

• Benefits obtained (assessment still to be carried
  out)
• Recognition of the SE by governments and most
  other sectors
• Growth and strengthening of SE enterprises and
  organizations
• New tools, especially in the area of
  funding/financing
• University research on the SE and on cooperatives
  (Chairs and ARUC)
• International influence (North-South)
• Tensions are more structural than ideological
• Between the initial mandate (growth of the
  emerging SE) and a so-called inclusive definition
  of the SE
• Between the mission of the CCQ and that of the SE
  Chantier
• CCQ grouping on the basis of legal status,
  monopoly of the cooperative representation SE
  Chantier whose mission extends the 1996 SE
  working group mandates, namely to promote and
  develop the emerging SE (associations and
  cooperatives)
• Tension mounts as a result of the implementation
  of tools dedicated to the SE
• In the administrative machinery of the State the
  Direction des coopératives (the government of
  Québec cooperatives directorate) and the Bureau
  de léconomie sociale (social economy office)
• Québec (provincial level) and the federal
  government level
• The necessary resolution of the most obvious and
  immediate conflicts will not make the structural
  tensions generating conflict disappear

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Comparison of France and Quebec
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Theoretical Constructions for the Analysis of
Social Economy Practices
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For an analysis of a societal and sectoral
configurations

• Immediate historical context
• Compromise and institutional recognition of the
  SE
• Actors, definition adopted, growth strategy
• Components of the SE
• Enterprises and organizations
• Cooperatives, mutuals and their affiliates
• Associations with economic activities
• Other forms of enterprises and organizations
• Intersectoral and sectoral clusterings
• Public policies and a development strategy
• SE development programs
• Development strategy and tools
• Role of the SE in economic development and social
  development

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Diverse theoretical constructions (1)

• Through the components (with their various legal
  statuses) and actors in the enterprise/association
  combination (Desroche).
• Through the actors, activities and rules
  (Vienney)
• Necessary but neglected activities
• Comparatively dominated actors
• Rules for harnessing the market (actors and the
  enterprise/association combination)
• Values equity, mutual aid/support (Defourny)
• Ultimate aim of service to members or to the
  community (non-profit)
• Management independence
• Democratic process
• Primacy of people over capital in the
  distribution of profits
• Co-construction of supply and demand
  hybridization of resources (Laville)

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Diverse theoretical constructions (2)

• Neo-institutionalism transaction costs, agency
  relationships, property rights, game theory
  (failure of markets and of the State) - Hansmann
• Approaches based on conventions SE as a
  compromise between conventions (civic, domestic,
  market, opinion-based, project-related) -
  Enjolras, Thévenot
• Regulation approach institutional compromise,
  mode of regulation, development model - Lipietz
• Evolutionary approaches trajectory, path of
  dependency, collective learning, etc.

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Diverse theoretical constructions (3)

• Context (development model)
• Collective and individual actors project (NMS)
• Institutional form (regulation)
• Organizational form (conventions)
• Evaluation (economic and social performance)

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Conclusion

• In any given society or region, the predominant
  definition is institutional -- and it has a
  certain stability. On the other hand, whatever
  the society or region, researchers may choose
  from several definitions, depending on the
  theoretical approaches they adopt.
• For a socio-economic or institutional approach
  all economies are social, including corporate
  capitalism (which, however, does not recognize
  this social aspect). There is a continuum that
  extends beyond legal status.
• As concerns the practices and actors that, we
  maintain, belong to the social economy, the
  question is not so much one of who belongs as
  one of who WANTS to belong and what project
  they have in mind.

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• One of the lessons in the history of the social
  economy is that it feeds on alternative utopias
  while developing as a regulatory economy. It
  defines an ideology, that is, a group of ideas
  capable of providing actors with reasons for
  getting involved, but does not produce an
  autonomous economic system. Jean-François
  Draperi, 2000.
• But we cannot imagine a society without a
  utopia, for this would be a society without
  purpose. Paul Ricoeur