A recent study published in the Journal of World Economy examines the growing institutionalization of the social economy and its vital role in tackling global challenges, particularly during crises. Led by Belén Català Estada, the research highlights Spain as a leading example of how effective institutionalization can translate conceptual ideals into actionable policies.
The social economy encompasses various initiatives, including cooperatives, social enterprises, and non-profit organizations, all aimed at promoting social welfare alongside economic growth. The paper identifies key challenges faced by the social economy, such as insufficient recognition and regulatory frameworks, and underscores the importance of institutional support and leadership in overcoming these hurdles.
Català Estada distinguishes between two forms of institutionalization: socio-cognitive and political. Socio-cognitive institutionalization involves changing perceptions and attitudes towards the social economy, while political institutionalization focuses on formal regulations and support systems. Spain’s approach effectively integrates both forms, creating a robust framework that fosters growth in the social economy.
This study is particularly relevant for sectors such as social entrepreneurship, sustainable development, and public policy. By adopting Spain’s model, other countries and regions could enhance their social economy frameworks, potentially leading to increased job creation, innovation, and community resilience.
“Spain’s leadership is noteworthy for integrating these forms,” Català Estada states, emphasizing the need for a comprehensive approach to institutionalization. The findings suggest that countries looking to strengthen their social economies can draw valuable lessons from Spain’s experience.
As global challenges continue to mount, the insights from this research could lead to significant commercial opportunities for businesses and organizations operating in the social economy sector. By aligning with public policies that support social initiatives, these entities can not only contribute to societal well-being but also tap into new markets and funding sources.
The study underscores the potential for the social economy to address pressing issues while driving economic development, making it a key area for future investment and policy focus. The insights provided by Català Estada in the Journal of World Economy could serve as a blueprint for nations aiming to harness the power of the social economy in the face of global challenges.
