The cooperative movement at the service of social medicine
Social economy companies have been deep-rooted in the Belgian economic and social fabric since their emergence in the 19th century. This model has become consolidated as a keystone of sustainable development, inclusion and social cohesion in the country.
Currently, it is estimated that there are 18,000 active social economy companies in Belgium, employing 583,000 people in the country. This represents around 12% of the total employment, one of highest figures in Europe.
Belgium legally acknowledges the social economy through federal and regional laws. For example, the Social Economy Law in Wallonia (2008) and the Social Economy Ordinance in Brussels.
The country has a clear definition of social economy based on four criteria: the precedence of people over the capital, independence of the management, reinvestment of most of the profits and democratic participation.
The social economy entities in Belgium arose in the 19th century, deeply-rooted in the worker movements that supported the creation of cooperatives and mutual societies, and the development of the voluntary sector.
Cooperatives flourished during this period, being structured around politically ideological movements. During the 20th century, the arrival of the Welfare State promoted the development of social economy entities, particularly associations, as they began to act as suppliers of social services.
Most of the entities obtained their recognition over the 20th century, with, for example, the first law that regulated the associations being passed in 1921.
Since 1980, the public funding decreased in the region and the associations have started to develop more commercial activities and to innovate in order to create new business models. Cooperatives began to restructure themselves, diversifying their work and becoming more involved in activities aimed at social innovation, the environment and general interest.
In Belgium, cooperatives have placed a special emphasis on introducing new sustainable business models, incorporating principles that are both ecological and social.
In addition, a key point has been their management capacity and their impact, with the clear idea that the objective of the social economy is also to create an economy that works. For this reason, it is essential to make it become completely professional.
Nonetheless, initiatives have been created linked to responsible consumption, renewable energies and solidarity finance, amongst others.
As in other parts of the world, the challenges of the Belgian social economy involve strengthening the recognition and managing to attract new generations, both in stable companies and through enterprise.
The social economy has the potential for acting in favour of the country’s great challenges, such as climate change, inequality, along with the aging of the population.
Discover how the social economy and the circular economy can become integrated to build a fairer, more sustainable and inclusive economic model. Keys, benefits and examples.
Acknowledged since 1980, the social economy promotes employment; it responds to healthcare challenges and it has been consolidated as a key component in the transition towards a fairer and more sustainable model in Europe.