The Social Economy and Role of Government in South Africa

2. Overview Of Social Economy

The social economy is considered a ‘third sector’ amongst economies operating between the private (business) and public sectors (government). Historically, literature have linked social economy to associations and co-operatives structured to respond to the living conditions of the most vulnerable and defenceless social groups. In support of this movement, the International Labour Organisation’s (ILO) recently adopted a Declaration of Social Justice for a Fair Globalisation which underpins the need for effective social economy and envisions placing people at the centre of the economic policy of government. Given this background, ILO defined social economy as “a concept designating enterprises and organizations, in particular cooperatives, mutual benefit societies, associations, foundations and social enterprises, which has the specific feature of producing goods, services and knowledge while pursuing both economic and social aims and fostering solidarity” (ILO, 2009, p.1). Another contemporary definition of the social economy comes from Mook et al.,(2007, p.17), “A bridging concept for organizations that have social objectives central to their mission and their practice, and either have explicit economic objectives or generate some economic value through the services they provide and purchases they undertake”. The aim of social economy from both definitions is that it is based on democratic values and is not profit-driven. The concept of the social economy is influenced by the philosophy of ensuring social ethics and morality--solidarity, equality, liberty and social responsibility particularly for the vulnerable groups within society.