Recommendation of the Council on the Social and Solidarity Economy and Social Innovation

The Recommendation on the Social and Solidarity Economy and Social Innovation was adopted by the OECD Council at Ministerial level on 10 June 2022 on the proposal of the Local Employment and Economic Development Directing Committee (LEED DC). The first international standard in this area, the Recommendation provides Adherents with an internationally agreed policy framework to foster social economy and social innovation development and ensure their ongoing expansion.

The social economy is driven by values of solidarity, the primacy of people over capital and by democratic and participative governance. It can pioneer new business models, provide essential services, contribute to a fairer, green and digital transition, create jobs with impact, particularly for those experiencing a disadvantage, engage youth, and build cohesion. In addition to raising awareness and visibility of its various impacts, the Recommendation aims to help Adherents design and implement the policies needed to nurture and develop effective social economy ecosystems.

OECD’s work on the social economy

The social economy and social innovation have increasingly been in the spotlight in recent years. Countries may use different terms to refer to the entities that comprise the social economy in their contexts. Typically, the social economy is made up of associations, cooperatives, foundations, mutual societies and social enterprises. The social economy is a driver of job creation and economic activity with impact. Based on estimates, it accounts for between 2% and 10% of national GDP in OECD Member countries.

The OECD, through the Local Employment and Economic Development (LEED) Programme, has significantly contributed to the conceptual knowledge and practical understanding of the social economy since the mid-1990s. The OECD has expanded its work in the field over the last 25 years, raising awareness of the social economy’s contribution to inclusive and sustainable growth at the local, regional and national levels in OECD Members countries and beyond. In addition to in-depth reviews conducted in various OECD Members, including at regional and local level, significant work has been done on social entrepreneurship through the online EU/OECD Better Entrepreneurship Policy Tool and numerous publications.

legalinstruments.oecd.org/en/instruments/OECD-LEGAL-0472