“Neoliberal diffusion of the social economy: The case for the solidarity economy”

In this paper, I explore the social and solidarity economies.  The social economy has become the buzzword of the political and economic elite in response to the growing crisis of capitalism, the crisis of the state and in an effort to demonstrate their commitment to local development.  But what is meant by social economy?  What are its characteristics?  Who are its proponents?  Why at this point in history has it become so popular among governments, businesses, and development practitioners?  I explore these questions, by comparing the social economy to the “solidarity economy.”  I argue that the social economy is ultimately about amelioration of the negative social externalities of a market economy in which the state has retreated from much of its social welfare role.  I contrast this ameliorative approach to the transformative vision of the solidarity economy, which seeks to change the relations of power and wealth in the market economy/society.  In short, the social economy is about social inclusion, while the solidarity economy is about social transformation. I begin by situating this discussion within a broader discussion of neoliberalism and the (dis)embeddedness of the economy.