The Bulgarian government, social partners, experts and academics have highlighted the importance of cooperatives as a key economic pillar at a conference organised in support of the 2012 UN International Year of Cooperatives. At the conference in Sofia on 4 December 2012, opened by Minister of Labour Totyu Mladenov, international delegates were told that cooperatives, which have no shareholders, are more stable organisations than conventional businesses in times of crisis.
Background
The role of cooperatives as a mainstay of the social economy in Bulgaria was discussed at an international conference held in Sofia on 4 December 2012 to mark the conclusion of the 2012 UN International Year of Cooperatives. The event was attended by social partners, representatives of non-governmental organisations (NGOs), experts and academics. Discussions involved members of parliament (MPs), experts from the Ministry of Labour and Social Policy, and managers of cooperatives and associations.
Delegates heard that the social economy would make an increasing contribution to solving problems of poverty and social exclusion. It could also help encourage employment and benefit people, including those with disabilities, who find it difficult to enter the primary labour market groups.
A plan of action
In an opening address, Tsetska Tsacheva, Chair of Bulgaria’s National Assembly and Totyo Mladenov, Minister of Labour and Social Affairs, focused on the country’s national concept for the social economy. This includes an action plan for the development of the social economy, designed by an interdepartmental working group with the broad participation of social partners and stakeholders.
Last spring, the city of Plovdiv held the country’s first fair for social enterprises in Bulgaria, and Minister Mladenov said he intended to make this successful initiative an annual event.
Tsetska Tsacheva stressed that any recommendations made at the conference would reach all Bulgaria’s MPs, and appropriate proposals for legislative changes would be submitted to parliament for discussion.
Benefits of cooperatives
Bulgarian experts paid particular attention to the role of cooperatives in employment, quality of work and industrial relations in general. Social entrepreneurship supports economic growth by creating products with a specific purpose – not just for the market – and initiates socially useful activities.
According to Deyana Indjova, Chair of the Movement of People with Disabilities, only about 1,500 people in this group are currently employed, their long-term unemployment is 98.2% and a revival of cooperatives will help reduce unemployment and social tension.
The Vice-President of the Confederation of Independent Trade Unions in Bulgaria (CITUB), Plamen Nankov, presented two new projects to CITUB that he believed would give a new dimension to cooperatives and their role in improving employment and quality of working life. Members of CITUB are able to use such cooperatives for life insurance and mutual aid funds established in 27 offices in regional centres.
International contributions
International participation was led by two officers of Cooperatives Europe, the European Regional Office of the International Co-operative Alliance (ICA), namely Director Klaus Niederlander and Co-President Etienne Pflimlin. There was also a delegation from the European Economic and Social Committee (EESC), led by Luca Jahier, President of the Various Interests’ Group. Foreign experts emphasised the ‘best experience’ of EU countries, and the impact cooperatives have had on the development of society and industrial relations.
Among the most frequently cited examples of best practice was France, where:
- about two-thirds of credit is provided by cooperatives, which are of particular importance in social financing;
- the only sector of the economy which over the last 10 years has continued to create jobs is the social economy sector;
- efficient management of risk has resulted in the increasing importance of the social economy.
The main message of Ariane Rodert, a Swedish Member of EESC, was that cooperatives have to face the challenges of the new programming period of the EU in terms of access to the markets and finances via the procurement mechanism. The European directive in this area should allow in the coming years more adequate transposition of law into national legislation so that social initiatives could reach everyone.
Sustainable financing of the social economy in the future should not rely only on state budgets, but also on EU funds, she said. The EU budget will have provision for social policy and social innovation. Ms Rodert stressed the importance for the Bulgarian government of dialogue with the social partners to identify priorities in preparation for the new EU programming phase.
Commentary
The role of the social economy – and of cooperatives as one of its key pillars – will grow in Bulgaria because more people will not be able to solve their economic problems through participation in the primary labour market or through the state welfare system. This trend seems to be valid not only for Bulgaria and European countries, but worldwide. Therefore, it is important to proceed in three directions:
- set clear criteria and forms of social economy, directing financing towards sustainability with internal and external sources;
- diversify the forms and method of entry of social enterprises and cooperatives in health, education and other important public fields;
- change the law to create a legal framework for all forms of social enterprises and create a favourable environment for their development.
Lyuben Tomev, ISTUR