From informal to formal jobs: The contribution of cooperatives in Colombia

Abstract

From informal to formal jobs: the contribution of cooperatives in ColombiaLabour informality remains a critical challenge for Colombia with over 60% of workers in informal jobs with no access to social security benefits, except health. To address the inherent challenges posed by a large informal sector, this paper explores the role that cooperatives can play in driving formalisation in Colombia. It presents the negative impacts of informality on the economy and how the social and solidarity economy, and cooperatives in particular, offer an important model for informal workers to transit towards formalisation (Section 1). It provides facts and figures about the cooperative sector as well as factors contributing to its development and barriers that hinder its expansion (Section 2). It considers the benefits and challenges of the compliance based approach to supervise cooperatives and provides policy orientations to strengthen the sector (Section 3).

What is the social and solidarity economy? A review of concepts

“…Countries have adopted numerous approaches to recognise social enterprises and operationalise their specific features, namely their entrepreneurial/economic dimension, their social objectives, and their inclusive governance or ownership (OECD, 2022 [7]; OECD, 2022 [8]). At the European level, relying on the EMES International Research Network approach to social enterprises (Borzaga and Defourny, 2001[178]) and building on the OECD definition, the European Commission established that social enterprises "run commercial activities (entrepreneurial/economic dimension) in order to achieve a social or societal common good (social dimension) and have an organisation or ownership system that reflects their mission (inclusive governance-ownership dimension)" (European Commission, 2011 [179]).…”

Platform cooperatives and employment

“…The social and solidarity economy (SSE) offers new models with alternative solutions to some of the issues raised by conventional digital labour platforms. Driven by societal objectives, values of solidarity, and democratic and participative governance, the SSE is gaining greater recognition globally (OECD, 2022 [29]; OECD, 2023 [30]) for fostering strong local communities and advancing sustainable economies and societies. The SSE (encompassing associations, cooperatives (Box 1.1), foundations, mutual societies and social enterprises), is also recognised for being a driver of social innovation, leading to the emergence of novel models in the broader economy and society (OECD, 2022 [29]).…”

Boosting Social Entrepreneurship and Social Enterprise Development in Ireland

“…The definition is aligned with the EMES International Research Network's approach, as well as the OECD (OECD, 2022 [41]) and the European Commission's definitions, and focuses on the main features of social enterprises: social mission, trading activities, reinvestment of surpluses, governance and asset lock (Department of Rural and Community Development, 2019 [26]). The policy also identifies a wide array of social enterprises, depending on activity and areas/sectors they engage in (see Table 3.1).…”

“…• A legal form is the foundational legal structure adopted by an organisation such as an association, co-operative or limited liability company (OECD, 2022 [41]). Legislations that define legal forms establish specific purposes and sets specific rules on the ownership, governance structure and distribution of profit (e.g.…”