Why is the Social Economy Important?

Eco
443(Article Draft) Khalid Bin Zahid_2018-2-30-058

John Pearce discusses the importance of the Social Economy, particularly in the context of a
mixed national economy alongside the private and public sectors. He highlights the distinct
values that underpin the Social Economy, including a focus on the common good, community,
cooperation, decentralization, democracy, diversity, good work, holism, inclusivity, being
people-centered, and sustainability. Pearce emphasizes that the Social Economy contributes
significantly to the national and local economies by creating jobs, providing services, and
generating income. It represents a substantial portion of the economy, possibly up to 25%.
However, he notes that the sector lacks a powerful voice in comparison to the business and labor
sectors.

The article suggests the need for the Social Economy to be self-sufficient and calls for self-help
and mutuality in supporting and growing social enterprises. Pearce advocates for collaboration
between the three sectors (private, public, and social economy) and highlights local-level
examples of successful cooperation. Pearce expresses concerns about focusing solely on existing
success stories in the Social Economy and encourages nurturing new social and community
enterprises. He also stresses the importance of globalizing the Social Economy to make it a
greater force for positive change.

The article concludes by posing challenging questions to various sectors. It questions the
motivations of governments in supporting the Social Economy, calls on the private sector to
address issues like global poverty and environmental threats, and asks small businesses to
strengthen partnerships. It also challenges the Social Economy to promote its values and unite
within the sector for a more significant impact.

The article underscores the vital role of the Social Economy and its potential to shape a more
ethical and sustainable future.