Social economy in Romania Current situation, trends, and challenges - PowerPoint PPT Presentation

Proiect cofinanţat din Fondul Social European prin Programul Operaţional Sectorial Dezvoltarea Resurselor Umane 2007 - 2013 “ Investeşte în oameni!” Proiect cofinanţat din Fondul Social European prin Programul Operaţional Sectorial Dezvoltarea Resurselor Umane 2007 - 2013 “ Investeşte în oameni!” Social economy in Romania Current situation, trends, and challenges Ancuta Vamesu, IES ROMANIA February 2013

Proiect cofinanţat din Fondul Social European prin Programul Operaţional Sectorial Dezvoltarea Resurselor Umane 2007 - 2013 “ Investeşte în oameni!” Presentation 1. Where does social economy in Romania come from? – a glimpse in time 2. The Data – Atlas overall data 2010 and main tendencies 2000-2010 3. Zoom in by sector – associations, coops and credit unions (evolution 1990-2010), mutuals and agriculture coops 4. Current issues & main challenges 5. Some possible reccommendations

Proiect cofinanţat din Fondul Social European prin Programul Operaţional Sectorial Dezvoltarea Resurselor Umane 2007 - 2013 “ Investeşte în oameni!” Romanian King Ferdinand attends the Congress of Cooperatives 1925 The cooperative system in Romania goes back 150 years. The first Romanian association of cooperatives was in fact one of the founders of the International Cooperative Alliance in 1895, which still exists today. On a downward trend after 1990, the arts and crafts cooperative system still needs to recover, besides the local market, the prestige of its products.

Proiect cofinanţat din Fondul Social European prin Programul Operaţional Sectorial Dezvoltarea Resurselor Umane 2007 - 2013 “ Investeşte în oameni!” Romanian Athenaeum Historical Concert Hall in Bucharest 1885 Public subscription campaign Give 1 leu for Ateneu! Literary Society ‘Romanian Athenaeum’ lanched a national public subscription campaign for a modern concert hall . The Romanian Athenaeum was finalized in 1888 by the architect Albert Galleron, and ….restored in 2000 – 2004! Two times ‘Give a Leu for Athenaeum’ initiative! – the people solved a problem through social innovation -Crowd source investment !

Proiect cofinanţat din Fondul Social European prin Programul Operaţional Sectorial Dezvoltarea Resurselor Umane 2007 - 2013 “ Investeşte în oameni!” Social economy in Romania – the Atlas • Definitions Social economy vs social entreprise • The Atlas - published first in 2011 – with retrospective data from 2000, 2005, 2007, 2008,2009 and in 2012; will continue in 2013 • Research Partners - University of Bucharest, Institute of Quality of Life and National Institute of Statistics

Proiect cofinanţat din Fondul Social European prin Programul Operaţional Sectorial Dezvoltarea Resurselor Umane 2007 - 2013 “ Investeşte în oameni!” Main data – FY 2010 • No. of active organisations – 31,152 (does not include housing associations – more than 15,000) 6.4% of registered entreprises • Total revenues 7,601 mil. RON / 1,805 Mil Euro equiv. Comparabale to turnover in industries such as wearing apparel, or wood products • No. of employees – 100,335 jobs 2,3% of workforce employed in Romania Comparable to industries such as financial intermediation and insurance

Proiect cofinanţat din Fondul Social European prin Programul Operaţional Sectorial Dezvoltarea Resurselor Umane 2007 - 2013 “ Investeşte în oameni!” Cooperatives Credit unions 6% Social economy in Romania - 9% main sectors No. of organisations Associations 30.000 and (registering balance sheets 2010) foundations 85% 25.000 20.000 Associations and foundations 15.000 Cooperatives 10.000 Credit unions 5.000 0 Year 2000 2005 2007 2009 2010

Proiect cofinanţat din Fondul Social European prin Programul Operaţional Sectorial Dezvoltarea Resurselor Umane 2007 - 2013 “ Investeşte în oameni!” Credit Unions 5% Cooperatives Social economy in Romania 20% - main sectors Associations and Revenues RON 2000-2010 foundations 75% 6.000.000 5.000.000 Associations and Revenues (thou RON) foundations 4.000.000 Cooperatives 3.000.000 Credit Unions 2.000.000 1.000.000 0 2000 2005 2007 2009 2010

Proiect cofinanţat din Fondul Social European prin Programul Operaţional Sectorial Dezvoltarea Resurselor Umane 2007 - 2013 “ Investeşte în oameni!” Credit Social economy in Romania - unions main sectors 5% Coops Paid employment in social 34% economy organisations Associations and by type 2000 - 2010 foundations 61% 120.000 100.000 80.000 60.000 40.000 Associations and foundations Coops 20.000 Credit unions Total social economy 0 2000 2005 2007 2009 2010

Proiect cofinanţat din Fondul Social European prin Programul Operaţional Sectorial Dezvoltarea Resurselor Umane 2007 - 2013 “ Investeşte în oameni!” Social economy in Romania - conclusions • Dominated by associations and foundations, mostly registered after 1989 • Cooperatives declining – mostly registered before 1989, enheriting assets from before 1989 • Credit unions stable / stagnating – survived in a changing environment in the last 22 years • Types of organisations missing – mutuals – although Romania quoted as one of the most “mutual markets” by ICMA - agriculture coops – more recently several startups

Social economy in Romania associations and foundation Proiect cofinanţat din Fondul Social European prin Programul Operaţional Sectorial Dezvoltarea Resurselor Umane 2007 - 2013 “ Investeşte în oameni!”  Social service providers – 50% of the registered providers (the rest public), 50% of clients of home care services,  Numerous WISE and protected workshops  Employment services and training providers  Education – kindergartens, after schools, higher education  Agriculture associations – numerous but with poor organisational capacities  Forrest owners – commons associations numerous, significant assets – traditional properties of forests - but poor organisational capacities

Social economy in Romania credit unions Proiect cofinanţat din Fondul Social European prin Programul Operaţional Sectorial Dezvoltarea Resurselor Umane 2007 - 2013 “ Investeşte în oameni!”  Employees – and self-employed • Total membership almost 1 mil - 16% of 1.400.000 employees were members of a credit union 1.200.000 at the end of 2010. 1.000.000 • 28% decline in membership 2004-2010  Retired – complex services – small loans, 800.000 financial help, social and medical services, 600.000 food shops and pharmacy Membership in credit 400.000 unions affiliated to the Estimated 1,5 mil members - 36% of the retired National Union 200.000 at the end of 2010 0 The only social economy organisation with an on-line TV system – full transparency http://www.omeniatv.ro/

Proiect cofinanţat din Fondul Social European prin Programul Operaţional Sectorial Dezvoltarea Resurselor Umane 2007 - 2013 “ Investeşte în oameni!” Social economy in Romania – 6550000 7000000 6500000 Membership in Cooperatives 6000000 comsumer coops 5000000 4000000 1989 - 2009 2734416  Membership in consumer 3000000 2000000 1354269 coops decreased 30 times - 1000000 29642 35029 33196 30883 27823 0 1989 1991 1996 2000 2005 2006 2007 2008 2009 from 655 thou. in 1989 to less Numar membrii than 28 thou.  Membership in worker coops 350000 Employment in coops 300000 in Romania 1992-2009 decreased from 430 thou. to 58 250000 thou. 200000 150000 100000 50000 0 1992 1995 2000 2005 2007 2008 2009

Proiect cofinanţat din Fondul Social European prin Programul Operaţional Sectorial Dezvoltarea Resurselor Umane 2007 - 2013 “ Investeşte în oameni!” Social economy in Romania – Mutuals – insurance • No mutual society registered – no legislation for such societies only for subsidiaries of international mutual companies • Romania - the fourth ‘most mutual’ market “Like fellow Eastern European markets Slovakia and Hungary, the Romanian market has a mutual sector that is composed of commercial subsidiaries of large mutual groups from Austria, Germany and the Netherlands. These multinational groups have stimulated growth of the mutual sector across Eastern Europe as well as many emerging economies in Latin America .” ICMF

Social economy in Romania – Agriculture coops Proiect cofinanţat din Fondul Social European prin Programul Operaţional Sectorial Dezvoltarea Resurselor Umane 2007 - 2013 “ Investeşte în oameni!” • Subsistence (SFs) and semi-subsistence farms (SSFs) prevalent in the New Member States, in Bulgaria, Hungary, Latvia, Lithuania, Slovakia and Romania 95% or more of agricultural holdings, most living in poverty. Country Number of farms % of farms • Characteristics of SF/SSF Romania 3,020,180 71 - farming activities form a livelihood Poland 1,393,760 56 Hungary 557,620 78 strategy as the output is consumed Bulgaria 416,550 78 directly; Italy 348,250 20 Greece 155,450 19 - the proportion of output sold is low – Lithuania 124,330 49 Spain 120,440 11 a significant proportion is not sold Portugal 104,580 32 - difficult to reach through United Kingdom 103,380 36 Latvia 83,790 65 networking/cooperation initiatives Slovakia 55,620 81 - reluctant to register Number of SF SSF by member state - less than 1 ESU (European Size Unit)*