At the end of a competitive bidding process, Euricse was awarded a contract by the ILO to conduct an international research project on “Financial mechanisms for innovative social and solidarity economy ecosystems”. Supported by the Ministry of Labour, Employment and Social and Solidarity Economy of the Government of the Grand Duchy of Luxembourg and promoted by the International Labour Organization (ILO), this project aims at fostering a better understanding of the financial mechanisms that support and consolidate the Social and Solidarity Economy (SSE). The project’s direct beneficiaries will be policy makers, social partners, development organizations who, through a better understanding of SSE ecosystems and the supporting financial mechanisms, will be better equipped to take advantage of this potential in promoting social justice and creating decent work for all.
Financial crises, limited access to affordable credit on the part of Social and Solidarity Economy organizations and the commercialization of microcredit all point to the need to transform financial systems. SSE organizations have difficulty accessing funding, which prevents all stakeholders, including governments, from realizing their full potential for the creation of decent jobs and for fostering sustainable local economic development, among other things. At the same time, a variety of alternative financial instruments such as community-based saving schemes and complementary currencies are playing an important role in community and local development, and deserve more attention and analysis.
Based on these premises, Euricse will answer the following questions:
What elements (actors, relationships, etc.) make up an innovative SSE ecosystem? What is the role of social partners in these ecosystems, how does the SSE foster the creation of decent work, and what is its contribution to the inclusion of vulnerable groups?
What are the specificities of SSE organizations, requiring distinct and dedicated financial mechanisms? What financial mechanisms exist within these ecosystems that allow SSE organizations and enterprises to grow and innovate? What conditions are required for these ecosystems to be fully effective?
What challenges or issues arise in these ecosystems, both financially and in other terms (employment relations, procurement mechanisms, operating in competitive markets, etc.)?
In line with the priorities of the funding Ministry, the project will cover one to two countries per continent (Latin America, Europe, Asia, and Africa), some of which are part of the International Leading Group on Social and Solidarity Economy (ILGSSE). At the end of the research, the primary goal will be to identify a summary of best practices and recommendations. Furthermore, by strengthening the knowledge base on the SSE and its financing mechanisms, the study will promote the recognition of SSE organizations and enterprises as an integral part of the global economy.
Euricse is due to deliver the conclusions of this research in June 2019.