THE THIRD SECTOR” AND THE SOCIAL ECONOMY IN THE MODERN WORLD
Abstract
The article reveals the concept and essence of social economy, provides description of the evolution of world economic thought regarding this phenomenon. Social economy is considered in two main planes: 1) as a general theoretical macroeconomic concept of "capitalism improvement" and 2) as a practical activity of enterprises and organizations of a special type that have non-capitalist nature. The set of such enterprises, which operate on the principles of non-profitability, solidarity, mutual aid, etc., is called "the third sector of economy". "Social economy" is defined as the largest and most important, but not the only, component of "the third sector". The characteristics of the main types of business entities of "the third sector" are provided: cooperatives, mutual societies (mutual insurance societies, credit societies, hospital funds, etc.), associations, social enterprises and foundations. Among the subjects of social economy, the main attention in the article is devoted to revealing the essence of cooperative organizations, their place and role in "the third sector of economy". The degree of prevalence and popularity of cooperatives in various spheres of countries’ economies is characterized. The main types of cooperative institutions are specified, depending on their activity goals, founders’ nature, problems to be solved, location (city or village), etc. A comparative analysis of such entities as: cooperatives, mutual societies, associations was conducted. The criteria determining whether an enterprise or organization belongs to social economy are described. Emphasis is placed on non-profit nature of social economy enterprises’ economic activity. Together with moral and ethical attitudes and guidelines, it is non-profitability and self-regulation that determine their uniqueness. Their social role and importance for ensuring the economic needs of society is defined. The global significance of "the third sector" and international cooperative movement in particular is noted. The role of international organizations and institutions of the European Union in the development of "social economy" and "the third sector" is reflected.
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