The development of the social economy in the welfare mix: Political dynamics between the state and the third sector

Abstract

This paper explores how social economy organizations (SEOs) position themselves in the welfare mix without being occupied by the state or market, especially in a context where they have not yet taken firm root in society. Focusing on the South Korean case, this paper analyzes the developmental path of the social economy in light of two factors: the degree of state involvement in the social economy, and SEOs’ political power. Based on these two factors, we develop four ideal types of the social economy: (1) a quasi-governmental social economy, (2) government–SEO partnership, (3) a marketized social economy, and (4) an autonomous social economy. The Korean case shows a path where politically strong SEOs and a strong interventionist state incubate the social economy. However, it also presents SEOs’ struggle to maintain their political influence to develop as an independent sector, without being occupied by the government or market.