The new generation of public policies for the social economy, a new policy straddling social, labour, industrial, and territorial policies. An overview

Over the past decade, there has been a notable transition from traditional, first-generation policies to a more sophisticated and transformative second-generation framework. While earlier policies were often fragmented, top-down, and limited to providing basic subsidies for specific sectors like work integration, the new generation views the SSE as a strategic partner for tackling broad societal challenges, including the socio-ecological transition and social inequality.

A central pillar of this modern approach is the concept of "co-construction," where the design and implementation of public policies are developed through active collaboration between public authorities and SSE actors. This shift reflects a move toward "transversality," as SSE is no longer confined to a single government department but is instead integrated across various policy areas such as health, industry, and the environment. This evolution has been significantly accelerated by global events like the COVID-19 pandemic and the subsequent launch of the European Social Economy Action Plan, which have institutionalized the SSE as a key driver of inclusive prosperity.

However, the paper also highlights significant obstacles that persist within this new landscape. Bureaucratic inertia and rigid administrative structures often resist these innovative models of governance. Furthermore, there is a risk of policy instability due to shifting political cycles, making it essential to establish robust legislative frameworks. Finally, the research warns of "institutional isomorphism," a phenomenon where SSE entities may lose their unique social identity and values by conforming too closely to the standard organizational patterns of either the state or the traditional private market.

Source: https://www.ciriec.uliege.be/wp-content/uploads/2025/06/WP2025-03_online.pdf