In-Depth Notes on the Social Economy Sector in Romania

Keynote Presentation

Historical Roots of Social Economy Organizations in Romania

Social economy organizations in Romania have a robust historical foundation, dating back to the 19th century with various types of associations, cooperatives, and mutuals. Each category of social economy organization boasts a unique historical background and socio-economic profile, being deeply embedded in their respective socio-political contexts. These organizations have evolved as historically constructed institutions influenced by specific welfare regimes, as articulated by Beland (2005) and Sepulveda (2014).

Evolution of Social Economy in Romania (1947-1989)

The period of state socialism from 1947 to 1989 saw a significant transformation of the core characteristics of social economy (SE) organizations. Under the communist regime, these organizations were altered to align with communist political goals, serving primarily as tools for the regime.

During this time, many SE organizations suffered from nationalization and cooperativization processes that stripped them of their autonomy, enforcing a centralized socio-economic structure. As a result, the number of associations and foundations plummeted across the communist bloc, as stated by Hausner (2009) and Lambru & Petrescu (2021). Conversely, cooperatives and mutuals underwent significant restructuring to survive under state control, thus losing their foundational principles of voluntary participation and autonomy from government.

Rebirth and Repositioning of the SE Sector (1989-2007)

Following the fall of communism, the early 1990s marked the rebirth of various social economy entities, including associations, foundations, and mutual aid groups, although the cooperative sector faced a notable decline. Legislative reforms aimed at establishing SE organizations as independent actors led to the emergence of social entrepreneurship initiatives, primarily driven by associations and foundations seeking alternative funding sources.

Particularly noteworthy was the establishment of mutual aid associations aimed at combating social exclusion. Two notable legislative frameworks, EMAA (L122/1996) and RMAA (L540/2002), fostered mutual aid for retirees and employees, with the former witnessing declines due to economic disruptions while the latter saw a resurgence and growth into successful community-based enterprises.

Challenges and Modernization (2007-Present)

The modern period from 2007 onward has been characterized by efforts to institutionalize social enterprises through significant investments and legislative frameworks, such as Law 219/2015 regulating social economy entities. This law emphasizes social objectives over profit maximization, endorsing structures that prioritize community welfare.

The reforms introduced in public administration and social service realms have shaped social enterprise development. Notable legal reforms (Law 98/2016 and Law 99/2016) focused on creating opportunities for SE organizations to engage in public contracts.

Moreover, the post-COVID-19 environment highlighted the need for comprehensive approaches toward vulnerable workers, guiding new legislative measures (GO 33/2022) that promote social economy practices.

Perspectives for Future Development

Looking forward, the Ministry of Labour, Family and Youth is launching a large-scale program backed by EU funding from ESF+ titled "Promoting, Monitoring and Evaluating Social Economy in Romania" for 2025-2029. This initiative aims to craft a detailed Social Economy Strategy, reinforced by action plans, and contribute to the creation of digital platforms to enhance SE community engagement.

Through this program, there is a clear commitment to foster social economy development through collaborative practices and innovative digital solutions, underscoring the ongoing evolution of social economy in Romania as it adapts to contemporary challenges.

Workshop

Prepared Question

Is there a risk of over-institutionalizing the SE sector, potentially limiting grassroots initiatives and innovation?

I see there is a growing scepticism against EU regulations in different EU-countries, growing with the rise of populism. How does this affect the social action plan?

Player of the Action plan

• organisational approach with some set facts

  • cooperatives

  • mutual association

  • social enterprise (newest form)

  • commons

• universities

• professionals

• big players

• small players

• local politics

• The action plan is a political approach, it can success or it can fail, but for sure there will be learnings. We live in crazy times, a lot of people raise criticism about EU and there are a lot of players around the world who want to see the European market crashing.

• Its important that the social economy has a strong voice, not only to the inside also to the nation.

  • What is the European Union?

• The quality of the process will give you the quality of the result!

• Report: Social Business Initative (check out)

• Where does the countries put their money in?

• its a political process so we need political mindset.