Solution

Social Cooperatives

Displayed at Cooperativa Sociale Giovani Rilegatori, a social cooperative in Imola, Italy. Photo by Nathan Schneider, used with permission.

Overview

Through social cooperatives, people can care for each other within a framework of democratic con- trol and shared power.

The social cooperative has not just internal mutuality among its members but external mutuality, so the benefits are oriented to the people outside of it.

— Federica Bandini

In the 1980s, the Italian government implemented a range of austerity measures. These included reductions of government services in response to financial crises and the rise of an ideology that favored private business over the public sector. This left devastating gaps in the provision of critical services like healthcare and shortages in opportunities for people with disabilities. The country’s cooperative movement responded by adapting old models of economic democracy to new challenges. Cooperators created a new type of cooperative, one designed specifically to serve a public mission.

Many kinds of social cooperatives have emerged across Italy in recent decades. Coopselios, for instance, is a large co-op in the Emilia Romagna region that provides health and social services. InGalera is a Milan restaurant run by incarcerated people, while the Girasoli restaurant in Rome mainly employs members with Down syndrome. Social co-ops are engaged in a wide range of initiatives, from recycling to fostering relationships between native Italians and immigrants. Some specialize in supporting people struggling with drug dependency, while others provide home-based care for the elderly.

Whereas cooperatives traditionally have just one type of member—such as their workers or their consumers—social co-ops can be multi-stakeholder. Care providers and their patients, for example, can co-govern the organization together. And governance is key. Unlike other kinds of nonprofit organizations, social co-ops are controlled by the people who participate in them directly, not just the people who fund them.

The government of Italy formally embraced social cooperatives in 1991, when it passed a law that established the model as a distinct kind of legal entity. Most of the revenue for social co-ops now comes from government contracts. But operations are managed by the people providing and receiving services, not a distant government bureaucracy. This way, public services can involve a deeper sort of democracy than government elections. Over 10,000 social co-ops are operating in Italy today.

When social co-ops work the way they should, their workers and those they serve in the community have a seat at the decision-making table, either through direct assemblies or elected board members. This is especially important for groups of people who tend to be ignored or dismissed by traditional service providers and government officials. In social co-ops, they are at the center.

Social co-ops have spread beyond their roots in Italy. Governments in France, Canada, the United Kingdom, and elsewhere have passed legislation to support the formation of social co-ops following the Italian model. But even in places that lack supportive legislation, the ethos can still take root. For instance, charitable nonprofits can organize their governance so that workers and other participants are in control, not just funders. Businesses can do the same, ensuring that they are accountable to the public good, not just to private investors. And governments can prioritize cooperatives when they grant healthcare and public service contracts.

For all of us, the social co-op tradition can serve as a reminder that we can take care of each other without sacrificing democratic participation. The work of care need not be paternalistic; it can and should empower everyone involved.