10 GLOBAL VISION - RIPESS
5) Further Exploration of Key Concepts
RIPESS is inspired by and recognizes the importance of the concepts and approaches
discussed below, while at the same time acknowledging that our understanding of each has to
be deepened and discussed. This is work in progress.
Social Economy vs Solidarity Economy
The social economy (Diagram 3) is commonly understood as a “third sector” of the economy,
complementing the “first sector” (private/profit-oriented) and the “second sector”
(public/planned). The third sector includes cooperatives, mutuals, associations, and foundations
(CMAFs). These entities are collectively organized and oriented around social aims that are
prioritized above profits, or return to shareholders. The primary concern of CMAFs, as societies
of people, is not to maximize profits, but to achieve social goals (which does not exclude making
a profit, which is necessary for reinvestment). Some consider the social economy to be the third
leg of capitalism, along with the public and the private sector. Thus, advocates of the social
economy push for it to be accorded the same legitimacy as the public and private sectors, with a
corresponding level of support in public resources and policy. Others, on the more radical end of
the spectrum, view the social economy as a stepping stone towards a more fundamental
transformation of the economic system.
The solidarity economy (Diagram 4) seeks to change the whole social and economic system
and puts forth a different paradigm of development that upholds solidarity economy principles. It
pursues the transformation of the neoliberal capitalist economic system from one that gives
primacy to maximizing private profit and blind growth, to one that puts people and planet at its
core. As an alternative economic system, the solidarity economy thus includes all three sectors
– private, public and the third sector.
The solidarity economy seeks to re-orient and harness the state, policies, trade, production,
distribution, consumption, investment, money and finance, and ownership structures towards
serving the welfare of people and the environment. What distinguishes the solidarity economy
movement from many other social change and revolutionary movements of the past, is that it is
pluralist in its approach - eschewing rigid blueprints and the belief in a single, correct path. The
solidarity economy also values and builds on concrete practices, many of which are quite old.
The solidarity economy, rather than seeking to create utopia out of thin air and theory,
recognizes that there currently exists a concrete utopia, a utopia in action. It is rooted in the
practices of participatory democracy and promotes a new vision of the economy, an economy
that puts people at the center of the system and values the links rather than the goods.
Thus the solidarity economy explicitly has a systemic, transformative, post-capitalist agenda.
The social economy, on the other hand, refers to a sector of the economy that may or may not
be part of a transformative, postcapitalist agenda, depending on whom you’re talking to.
RIPESS uses the term social solidarity economy to embrace both the solidarity economy and
the more radical end of the social economy. Defining the social solidarity economy framework is
a long and ongoing process. For example, Brazil’s solidarity economy definition was built by
SSE advocates and practitioners over many years through forums, meetings, and consultations.