World Economic Forum: Unlocking the Social Economy

The World Economic Forum has published “Unlocking the Social Economy” to achieve equity in the green and digital transformation.

We have an opportunity to promote fairness in policies to address climate change. The report focuses on the transformative forces of green and digital transformation that are reshaping the way people live and work. The green transformation is driven by the desire to decarbonize industry and promote environmental sustainability. The digital transformation uses technology to increase productivity and innovation.

Both offer economic opportunities. Nature-positive solutions are expected to create $10.1 trillion in business opportunities and 395 million new jobs by 2030. In 2022, the digital economy accounted for more than 15.5% of global gross domestic product (GDP).

The costs and benefits of the transition are not evenly distributed. The global economy will be increasingly determined by digital skills, but 2.6 billion people around the world still do not have reliable internet access and 760 million people do not have electricity. Communities that rely heavily on fossil fuel industries are at risk of losing their existing livelihoods in a green economy.

The report shows that the social economy is driving economic equity amid growing inequality and disruptive global transformation. Social enterprises (businesses that prioritize people and the planet over profits) are not only leading innovation in green and digital transformations, but also creating better outcomes for those who need it most. It is estimated that there are 10 million social enterprises worldwide, with an annual turnover of more than $2 trillion, larger than the fashion or advertising industries.

The report shows that the social economy can promote economic equity by:

The target population for training and employment is 200 million people;

Providing affordable goods and services through smart use of technology and innovation, tiered pricing strategies and promoting reuse, repair and recycling;

ensuring access to relevant products and services through community engagement and inclusive innovation;

Providing nearly $1.6 trillion in financing and investments to marginalized groups through impact investing, microfinance, and fintech;

Build capacity to create and sell relevant products and services through training, networking and social marketing.

Policymakers and business leaders would benefit from working with and investing in social enterprises to promote economic equity in the green and digital transformation. Literature review and interviews with the public and private sectors revealed a range of policy actions that governments could consider to promote the green and digital transformation of social enterprises. These policy actions include:

Dedicated action plans and strategies to promote socio-economic

Tax incentives for public welfare enterprises

Subsidies for basic products and services

Incorporating social and environmental criteria into purchasing decisions

Incorporating social criteria into investments in green and digital transformation

Market supervision

Public-private partnerships to address key transformation challenges

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