Conceptualizing the Social Economy in China

This study offers a conceptual analysis of the social economy in China within the context of institutional transition. In China, economic reform has engendered significant social changes. Accelerated economic growth, privatization of the social welfare system, and the rise of civil society explain the institutional contexts in which a range of not-for-profit initiatives, neither state-owned nor capital-driven, re-emerged. They are defined in this research as the social economy in China. This study shows that although the term itself is quite new, the social economy is no new phenomenon in China, as its various elements have a rich historical tradition. Moreover, the impact of the transition on the upsurge of the Chinese social economy is felt not only through direct means of de-nationalization and marketization and, as a consequence, the privatization of China's social welfare system, but also through various indirect means. The development of the social economy in China was greatly influenced by the framework set by political institutions and, accordingly, legal enabling environments. In addition, the link to the West, as well as local historical and cultural traditions, contribute towards explaining its re-emergence. Examining the practices in the field shows that the social economy sector in China is conducive to achieving a plural economy and an inclusive society, particularly by way of poverty reduction, social service provision, work integration, and community development. Therefore, in contemporary China, it serves as a key sector for improving welfare, encouraging participation, and consolidating solidarity.