The Social Economy and immigrants, refugees and

cultural communities

Metropolis Calgary March 2009

Annie McKitrick

Presentation agenda

• Introductions and agenda• The Social Economy in Canada and

Internationally• A Perspective from British Columbia• A Perspective from Manitoba and

ICAN• A Perspective from Québec• The Co-operative Experience• Summary

Goals for the Workshop

• Introduction of the Social Economy as an innovative way of answering the question of ethical wealth production and distribution in Canada.

• Highlighting the use of the Social Economy by immigrants, refugees and cultural communities.

• Discussion of collaborative research regarding ways in which the Social Economy has helped to achieve successful integration by immigrants, refugees and cultural communities.

The Canadian Social Economy Research

Partnerships Consists of:• Six regional nodes and a national hub bringing together

community activists and academics from 79 universities (Canadian and International) and 15 academic disciplines.

• Partnerships with 140 organizations.

• Funding for publications, international collaboration, graduate student research, faculty time release for curriculum development, web-based learning tools, public policy development and conference presentations.

The Social Sciences & Humanities Research Council provided funding over five years for the Hub and the regional nodes

CSEHub Organisation

Background

• Immigrants and refugees face two major challenges: social integration and economic security.

• Under-employment in low-paying, physically-demanding work can further isolate newcomers to Canada.

• With limited resources, and the stress of finding enough employment to meet the needs of their families, few immigrants have the time and the energy to develop social networks beyond their immediate families or ethno-cultural communities.

• Breaking the circle of isolated employment and lack of self-esteem due to the underemployment is an important aspect of economic security.

What is meant by “Social Economy"

The best way to illustrate the Social Economy is to use the example of the group that manufactured the bags for the 2007 Metropolis conference in Toronto: This was HAWEEN Enterprises Inc., a social enterprise of the Somali Women's & Children's Support Network.

Haween Enterprises Inc.

Haween Enterprise is a division of the Somali Women and Children's Support Network. The main goal of Haween is to increase employment opportunities and work experience for both Somali and other immigrant women, through provision of services to the textile industry, manufactures and private companies. The social support component of Haween includes increasing

• life skills, • leadership skills, • social networks, and • the capacity to integrate into

Canadian Society.

Another example: Malalay Afghan Women’s Sewing and

Crafts Co-operative• Malalay is a grass-roots community economic

development enterprise started in 2003 by the Afghan community in partnership with Immigrant Services Society of British Columbia.

• They now have a workshop and machines, and are developing as well as marketing products.

• The women participate in weekly meetings about the business and are supported by ESL classes, translation, childcare as they develop leadership skills and begin to earn income.

• The women manage the business and collectively make decisions.

What is the Social Economy?

• Very prominent in Québec• Sometimes referred as Community

Economic Development (CED) in anglophone Canada

• Has strong European roots • Known in some parts of the world

as the Social and Solidarity Economy

A Definition of the Social Economy

The Social Economy consists of association-based economic initiatives founded on values of:

• Service to members of community rather than generating profits;• Autonomous management (not government or market controlled);• Democratic decision making;• Primacy of persons and work over capital;• Based on principles of participation, empowerment.

The Social Economy includes: social assets (housing, childcare, etc.) social enterprises including co-operatives, credit unions, equity and debt capital for community investment, social purpose businesses, community training and skills development, integrated social and economic planning and capacity building and community empowerment. The Social Economy is a continuum that goes from the one end of totally voluntary organizations to the other end where the economic activity (social enterprise) blurs the line with the private sector.

From the CCEDNet National Policy CouncilBased on the definition from the Chantier de l’économie sociale

Other aspects of the Social Economy

• The Social Economy is being created by community organizations (co-operatives and non-profits and social enterprises) that generate both social and economic benefits, bringing entrepreneurship and social goals together in new forms of social innovation.

• Not a substitute for social programs or a quick fix for cutbacks in community services, but a long term strategy for development of community social and economic self sufficiency.

Key Definitional Indicators

Values:

•Service to Community / Primacy of persons over profit

•Empowerment

•Civic Engagement / Active Citizenry / Volunteer Association

•Social and Economic values and mission

Characteristics / Structure:

•Profit (re)distribution

•Autonomous Management / Collective ownership

•Democratic governance and decision-making

•“Third sector” / Self-governing Sector

Values

1. Service to Community / Primacy of persons over profit – provides goods and services for the public interest or to members, not a tool in the service of capital investment

2. Empowerment – transformation of individuals or communities, to become more invested with power and authority however defined.

3. Civic Engagement / Active Citizenry / Volunteer Association – concept of investing (non-monetarily) and active participation in one’s community.

4. Social and Economic values and mission – the set of values and overarching mission of Social Economy acteurs and organizations are both social and economic in scope.

Characteristics / Structure:

5. Profit (re)distribution – limited or prohibited distribution of profits to members or invested back into the business, limited return on capital, not publicly-traded or available for purchase in the sense of the capital economic model.

6. Autonomous Management / Collective ownership – self-management by members or communities, no one individual holds ownership over the organization.

7. Democratic governance and decision-making – refers theoretically to the principle of “one member/person”, one vote (not “one share, one vote”).

8. “Third sector” / Self-governing Sector – a middle way that operates for the most part operates between the public and private sectors, and is governed by neither sector.

Approaches to the SE• Reformist - Prioritizes market

functions of SE over social change.• Transformative - Empowerment of

individuals and communities, and collective enterprise/action focus

• Inclusive - Bridging concept for organizations that have social objectives and generate some economic value.

The Social Economy and Immigrants/Refugees - Recent

Developments• Funding has been made available for development of

co-operatives by immigrants and refugees through the Co-operatives Development Initiative of the federal government.

• CCEDNet has taken the lead to form a network of immigrants and refugees (ICAN) providing leadership in Co-op and Social Enterprise development.

• A book on best practices in co-op development included a chapter by Melanie Conn and Gulalai Habib who worked on developing the Afghan Co-op in BC.

• The Manitoba provincial government is funding enterprise development in immigrant/refugee communities.

• There are also a number of micro-loan programs and other funders who are providing support and funds to the settlement sector for development of enterprises.

Some challenges in moving toward the development of SE

organizations• Settlement agencies are usually divided between

settlement and employment training /ESL departments. Creating social enterprises or incubating co-operatives does not fit in naturally within either department.

• Unlike typical employment programs, Social Economy approaches do not fit in easily with the traditional funding-based programs.

• Immigrants/refugees on social assistance face challenges as they get involved in Social Economy organizations due to the restrictions on earnings imposed.

• Practitioners must be trained and orientated to Social Economy approaches and practices.

• There is potential for co-operative development among immigrants and refugees but they must be supported beyond the initial formation stages.

Promising Emerging Practices

• The “entreprises d’insertion” • Worker co-operatives• Social Enterprises with close

ties to parent immigrant settlement agencies

Key Research Questions

• What is the perception of immigrants, refugees and members of cultural communities of the Social Economy (co-operatives, mutuals, social enterprises, not for profits)?

• What is their involvement in the Social Economy (as volunteers, members, workers, users, entrepreneurs)?

• Are they using the Social Economy as a way to develop their communities?

• Do they only see the market or the state as providing opportunities?

• Are they able to use the Social Economy framework as opportunities appear?

• Is social entrepreneurship present in the immigrant, refugees and cultural communities’ population and to what extend?

• What is the role that the Social Economy plays in the social, political and economical integration of immigrants? What role could it play?

• What are the barriers to accessing information about Social Economy resources by immigrants, refugees and members of cultural communities?

• What is the role that mutual aid organizations have and are playing in the settlement of immigrants, refugees and members of cultural communities?

• What is the role of immigrant settlement agencies in Social Economy activities?

• What public policies can play a role to facilitate the bridging between the Social Economy and immigrants, refugees or members of cultural communities?

• Do such policies exist in other countries that are receiving immigrants, or refugees?

• Should public policies do more, and if so, what kind of programs could be developed?

Key Research Questions, con’t.

PROPOSITION De Jean-Marc Fontan, ARUC/UQAM

Nous proposons la tenue d’une activité spéciale lors du prochain colloque Métropolis qui se tiendra à Montréal en 2010. Une activité qui se ferait conjointement avec CCRPES et Métropolis afin : De sensibiliser les parties concernées à

l’importance de la recherche sur le thème de l’économie sociale et des populations issues de l’immigration

De faire le point sur l’état d’avancement des connaissances au niveau canadien et mondial sur ce thème

For More Information, Please Visit:For More Information, Please Visit:www.socialeconomyhub.ca