“The social economy in Greece: state of play and prospects” Dimitris Ziomas National Centre for Social Research (EKKE) “Black or white?” ATHENS SEMINAR 20 May 2010

The social economy sector it provides manifold opportunities for integration and employment Social economy organisations can be defined as: private, autonomous organisations that pursue social and economic objectives of collective interest place limits on private, individual acquisitions of profits and work for local communities or for groups of people from civil society sharing common interests They also tend to involve stakeholders, including workers, volunteers and users in their management

Their potential contribution If adequately supported: effective contribution to expanding the labour market provide new opportunities for people with poor qualifications or reduced capacity for work (so that they can use their skills and participate in working life) Examples: Italy, France, Belgium, Sweden They provide support through measures such as: specific or simplified legal framework, easier access to public procurement, better networking with the public administration, etc.

Distinctive specific features The primacy of the individual and the social objective over capital Voluntary and open membership Democratic control by the membership The combination of the interests of members/users and/or the general interest The defense and application of the principle of solidarity and responsibility Autonomous management and independence from public authorities The essential surpluses is used to carry out sustainable development objective, services of interests to members or of general interest

Working definition of a ‘‘social enterprise’’ (EMES criteria)   i. In respect of the entrepreneurial side, the following elements are necessary:   ó  It should have a continuous activity producing goods and/ or selling services ó  It should exhibit a high degree of autonomy ó  It should take a significant level of economic risk ó  It should combine a minimum amount of paid work Another possible parameter, which should not be considered as one of the abovementioned essential criteria, could be the ‘‘market orientation’’ element

Working definition of a ‘‘social enterprise’’ (EMES criteria) ii. In respect of the social aspects of the initiative, the following elements are necessary:   ó  The initiative is established by a group of citizens ó  The initiative’s power is not based on capital ownership ó  It functions in a participatory manner, involving the persons affected by its activity ó  It exhibits only a limited profit distribution ó  It is characterised by an explicit aim to benefit the community

Social Economy in Europe Represents: 10% of all businesses (2 million undertakings) or 6% of total employment (11 million people in EE 25) or 7.9% in wage-earning employment Greece: 70.000 employed (1.8% of total employment or 2.9% of wage-earning employment) Germany: approx. 2 million people (5.8% of wage-earning employment) Hungary: approx. 76.000 people (2.3% of wage-earning employment) Poland: approx. 530.000 people (6.1% of wage-earning employment) Source: CIRIEC, 2007 (2002-2003 data)

Background information: Greek labour market (1) low employment rate relatively high unemployment rate high and persistent long-term unemployment. Unemployment hits hard women, young persons and persons of social vulnerable groups

Background information: Some Key Social Indicators (2) At risk of poverty rate – very high (20%) against 16% for EU 25 Percentage of working poor – very high (14%) against 8% for EU 25 Number of undeclared workers approx. 25% of the total workforce

The state of play of the Social Economy sector in Greece (1) Lack of any dedicated institutional and legal arrangements for the sector Low visibility and recognition Marginal position in the employment policy formation Lack of supportive mechanisms Absence of alternative sources of financing

The state of play of the Social Economy sector in Greece (2) However, one observes over recent years A Growing emergence of initiatives, projects and agencies dealing with unemployment, social exclusion and environmental protection A process gradually invested by increasing legitimacy Yet, there is a lack of a system for classification, monitoring, assessment of such initiatives and their activities The only institutionalized form of a “Social Enterprise type organisation” in Greece is the Social Cooperatives of Limited Liability for persons with mental health problems.

Potential transferability of the European experience to Greece (1) Establishment of special type of organizations (such as the WISE) to enlarge the range of employment opportunities to disadvantaged social groups Enactment of specific arrangements for customizing measures for particular target groups through social economy organizations For example: Grouping together different measures/programmes, as well as, their budgets into becoming an integrated programme and thus a “block grant”

Potential transferability of the European experience to Greece (2) Strengthening links and promoting combined partnership at local level between state, local agencies and social economy enterprises Yet, policy making in Greece retains its centralize character and thus localized policies are hard to come by. Devolution of central government functions in this area are considered a prerequisite, in this respect. Establishing intermediate support structures and adopting alternative financing mechanisms Establishing a social economy department/ unit within the Ministry

Concluding Remarks The key priorities for Greece: Recognition and legitimization of the Social Economy as a specific social and economic sector through the adoption of the appropriate legal framework Recognition of the Social Economy's role in promoting the employment of the disadvantaged social groups through the enlargement of active labour market measures Creation of a favourable environment for the development of social economy organizations – better cooperation between state agencies, local authorities and social enterprises

SOCIAL CO-OPERATIVES (KoiSPEs) FOR PERSONS WITH MENTAL-HEALTH PROBLEMS IN GREECE: BACKGROUND 15 Social Co-Operatives have been established since 2002 Developed within the framework of public policy for the social inclusion and integration of mentally- ill persons. Underpinned by the idea of Solidarity: among its members and between them and the community Part of a community-based integrated approach: work integration activity (and at the same time) mental health service “Bridge” which connects the remote spatial “worlds” of: market, society and mental health community

Objectives Solidarity function Aim at providing mentally- ill patients with the conditions of getting back to life both socially and economically Explicit social goal through a particular employment promotion welfare service. Pave the way for similar modalities of services for other vulnerable groups.

The institutional framework of Social Co-operatives of Limited Liability The legal basis Law No 2716 of 1999 concerning ‘the development and modernization of mental health services’, provides among other things, for the formation of ‘Social Co-operatives of Limited Liability’, which are legal entities of private law. Social Co-operatives are a specific form of co-operative: productive and trade oriented organizations and (at the same time) Mental Health Units (supervised by the Ministry of Health and Social Solidarity).

New elements introduced by article 12 of the Law Social Co-operative can serve many purposes, and perform any economic activity Mentally ill people have right to undertake any economic activity Membership shares allocated to each participating group at least 35% to mentally ill persons, not more than 45% to professionals in the provision of services, and not more than 20% to unemployed persons, other agencies or organisations with a related purpose, etc.

The new elements introduced by article 12 of Law No 2716/1999 (cont.): Two mentally ill persons on the Administrative Board (consisting of seven members) Principle of democratic management: ‘one member-one vote’; For mentally ill persons employed by the Social Co-operative Salary, and Ensuring at the same time their right to continue to receive any disability payments provided by the state;

Employment objectives, arrangements and regulations of KoiSPEs They aim to create: - full time, permanent, sustainable and secure jobs as well as temporary jobs. They aim to provide: - appropriate working conditions, work organisation and contents responding to the specific needs of the mentally- ill persons and access to further training. The basic arrangements are: - mentally ill persons can be employed in the Social Co-operatives and get a salary in accordance with their productivity and the hours worked. - the salary earned is added to any benefit or pension that the mentally ill person is entitled to receive. - If the person is lacking social insurance, the Social Co-operative is required by law to provide social insurance coverage.

The main innovative elements characterising the institution of Social Co-operatives It is a new organisational form: it ensures compatibility between economic and social objectives. It is an innovative response to the lack of job opportunities in the open labour market. It strengthens and promotes solidarity, partnership relations and arrangements. Unlike other types of Co-operative organisations, where membership is composed of only one type of stakeholder, KoiSPEs’ formation requires a wider prtnership relationship.

The main innovative elements characterising the institution of Social Co-operatives (cont.) It enhances the mobilisation of the local actors and the local community at large. It facilitates and promotes a ‘bottom-up’ approach. It constitutes part of the de-institutionalisation process of mentally ill persons- it is underpinned by an integrated approach. It empowers mentally- ill persons through active participation, income creation and social links development. It exploits the potentiality of social capital development in a specific territorial context.

Constraints/ difficulties identified – issues requiring attention The difficulties to manage both functions or objectives (economic and therapeutical) in balance and to avoid promoting the one at the cost of the other. Problems related to the mobilization of a wide range of stakeholders. Lack of coordination between the competent public organizations – lack of harmonization with related institutional and administrative arrangements. Lack of exchange and support networks- high risk of isolation. Lack of access to financial resources- lack of exceptional public support. Issues related to the lack of managerial skills and to the effective implementation of a business plan.