Community economic development and the social economy:the Quebec context

TorontoOISE

September 2007

The Quebec ‘model’ of the social economy : brief history

• Early 1980’s with economic crisis, high unemployment, crisis of the welfare state bring changes to the Quebec ‘model’

• Involvement of the labour movement in economic development: creation of the Quebec Solidarity Fund, involvement of unions in regional development (Conseils de développement régional)

The Quebec ‘model’ : brief history

• Involvement of community organisations in local economic development: creation of the first community economic development corporations (1984) in urban context

• Rural initiatives to counter rural decline (Community Futures, Solidarité rurale..)

• Community-based service organisations in a wide range of sectors (employment, daycare, health and social services)

• Emergence of social cooperatives (housing, youth, etc)

• Caisse d’économie de la CSN: a financial cooperative dedicated to community initiatives

1995-1996: Major breakthroughs

• 1995: Women’s March Against Poverty includes demands for support for the social economy

• 1996: Summit on Economy and Employment: Social movements and community networks full players

in the process Working group on the social economy presents ambitious

action plan with support from all sectors Recognition of the importance of citizen involvement in

economic development

 

1997-2007: Significant steps forward

New Quebec policies in support of CED and the social economy:

• Local development policy (1997) creates local development centres (including mandates for collective entrepreneurship and involvement of civil society)

• Recognition and financial support for community economic development corporations in urban areas (federal,provincial,municipal)

• Sectoral policies for social entrepreneurship: childcare, homecare, social housing, recycling, etc.

1997-2007: Significant steps forward

• New financial tools for collective enterprises (loan guarantees, RISQ, micro-credit,Fondaction, Investissement Québec, Fiducie du Chantier de l’économie sociale)

• New enterprise models: solidarity cooperatives, non-profit businesses

• New institutions and networks emerge bringing together collective enterprises, community economic and local development networks and social movements (Chantier de l’économie sociale, CSMO-ESAC)

1997-2007: Significant steps forward

• New alliances with researchers and universities:ARUC-ES, Chaire de l’économie sociale

• Emerging international networks: Lima-Québec-Dakar, Groupe d’économie solidaire du Québec, partnerships with Latin America, Europe, Africa

• Partnerships with fair trade organisations and NGO’s in international cooperation

1995-2007: Significant steps forward

• 2003: new government continues support for social economy but changes local development policy in favour of control by municipal governments

• Civil society remains involved in most regions and communities: social economy remains on the agenda

• Private sector support for CED and the social economy (Cirque du Soleil, Chambers of commerce, private foundations, Fondation de l’entrepreneurship etc.)

1997-2007: Significant steps forward

• Social economy (cooperative and non-profit) integral part of broader political debates (health, economic and regional development, employment etc)

• Regional social economy pôles in 16 (of 17) Quebec regions to promote and develop collective entrepreneurship

• Increasing involvement of labour, environmental movement in the social economy

• High level of interest among youth networks for CED and the social economy

A quick snapshot

• In Quebec, over 6000 collective enterprises representing 4% of GNP (excluding financial and large agricultural cooperatives)

• Networks of CED or local development organisations in every Quebec community (CLD, Community Futures, CDECs, Regional development cooperatives, Community Development corporations)

• Recognition of the social economy as an integral part of socio-economic infrastructure

Summit on the Social and Solidarity Economy November 2006

• 700 delegates from every region and every sector• Presence of Premier Jean Charest• Observers from 23 countries• Wide consensus concerning the evaluation of the

past decade and perspectives for the next decade• Priorities: common strategies for opening up new

markets, improving management capacities, increasing access to capital, improving working conditions, making room for the next generation of leaders, reinforcing networks at a regional, national and international level

Chantier de l’économie sociale Trust

• 52.8 M$ investment fund for social economy enterprises

• Investors:

CED: 23.5M$ (non-repayable)

Quebec Solidarity Fund (FTQ) : 12M$

Fondaction (CSN): 8M$

Investissement Québec: 10M$

Chantier de l’économie sociale Trust

• Investment products for social economy enterprises

• The Chantier de l’économie sociale Trust

offers loans with a 15-year capital repayment moratory.

• The aim of this patient capital is to support enterprises’ operations and contribute to their real estate investments.

Chantier de l’économie sociale Trust

• Amounts available between $50,000 and $1.5 million.

• Loans are granted on the basis of financing packages in which the loan represents no more than 35% of project costs.

Chantier de l’économie sociale Trust

The Trust invests exclusively in social economy enterprises, particularly non-profit organizations and cooperatives with fewer than 200 employees.

Ineligible businessesQuébec government agencies or organisation that administer Québec government programs.These include childcare centres, home supportservices, perinatal centres, educational servicesand housing.

Chantier de l’économie sociale Trust

The Réseau d’investissement social du Québec (RISQ-social investment network of Québec) is the organisation that has been mandated by the Chantier de l’économie sociale Trust to receive and analyze loan applications before they are presented to the Trust’s investment committee.