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5.3 Support from the governments

Source: Social Economy (European Union, 2018)

Some governments have decided to support and institutionalise the application of the SEE. This has been
the case of Latin America, which has a great tradition of SEE. They recognise SEE in the constitution and in
legislative texts and regulations, and bodies from the government are designed to apply it and promote it.
This is the case of Bolivia, Ecuador, Venezuela and Brazil. These initiatives appeared as a response to the
marginalization from the markets and as different expressions of social movements.

In Europe there are also some States that promote the SEE in their legislative texts. It depends on the
State, but we can mention France and Spain as examples of countries applying the SEE. Some may argue
that an exclusive legislation to promote SEE may reduce innovation in this sector, but the truth is that the
proper political and institutional space is positive and great to improve the development of this alternative
economy. Governments see this as an opportunity to address challenges related to employment and
services aimed at improving the society. In Europe, this became important after the crisis lived in 2008.

The institutionalisation of social enterprises has been the key to promote the importance of SEE.
Governments in Europe have recognised that social enterprises contribute to the well-being of society.

If we refer to the supranational level of the social economy, the European Union as an entity has
recognised the importance of SEE and has declared that it is a priority and part of the EU goals, and
contributes to social justice. The first step was the recognition of social economy actors such
as cooperative societies, associations, social enterprises and foundations, among others (Novillo, 2019).