The Social and Solidarity Economy represents an important cornerstone in Mexico City, and responds to diverse social and communitarian organization forms derived from different historical trajectories, some of them millenarian. “Ejidos”, mutuals and cooperatives are the main types of organization which conform the social economy of the capital city. .
Due to its importance, these organization forms have been protected by the Political Constitution of Mexico City, since 2018. Thus, the Economic and Social Development policy of the capital considers the Social and Solidarity Economy and hence to promote and ensure it. From this social and productive organization form, thousands of companies have put at the core of their activities the equity and the welfare of their members and environment, rebuilding the social and citizen fabric of the environment. All of them arise from a social affinity or a common ideal which encourages to make social and economic activities in the interest of the community. In brief, it puts the person and its community at the core of the economic activities.
Recent studies revealed that the services and products offered by the social and solidarity companies are quite diverse. The broad range includes the transformation and commercialization of primary products (food), the provision of personal services to companies and households, and the fabrication of high technology content products.
The Census of Social and Solidarity Enterprises of Mexico City, December 2019, reports:
70% of the cooperatives are goods and/or services producers, meaning, they are dedicated to their transformation and commercialization.
• 28% are from goods and/or services consumption, their main purpose is to obtain articles in common for their households or productive activities.
• 13% indicates that their main activity is the textile industry (production and sale), whereas 10% is the sale of food.
• 56% have been operating for more than one and seven years.
• 59% of the cooperatives indicate to have started because a family member gathered other family members; 16% emerged from a social or neighborhood organization in which they participate; whereas 14% started by government (federal and local) recommendation and/or help.
• 62% of the cooperatives have changed and/or improved in their products and/or services over their operating time.
• 85% expressed their interest in conforming an ecosystem, by answering that they would like to be part of a network, a livery company, company association or companies with the same economic line as a supportive resource and/or organization.
• The average monthly income per sale in the cooperative was $20,070 MX
The Secretary of Labor and Employment Promotion of Mexico City (STYFE, in Spanish), has as its main goal to encourage and guarantee the decent work in the capital, therefor the Social and Solidarity Economy is one of the strategic lines to reach that goal, through the General Directorate of Social and Solidarity Economy.
The benefits offered to cooperatives in 2019 were:
Through the Subprogram for Strengthening Social and Solidarity Enterprises:
• 40 in the primary sector
• 147 in the secondary sector
• 242 in the service sector
• 5 in the transport sector, postal and warehousing
• 2 in the information services in mass media
Through the Subprogram Promotion and Constitution of Social and Solidarity Enterprises
• 97 in the primary sector
• 765 in the secondary sector
• 550 in the service sector
• 1 in the transport sector, postal and warehousing
• 19 in the information services in mass media
The beneficiaries add up to 10 thousand, of which 59% are women and 41% are men.
In 2020, the benefits until the month of July have been:
Subprogram for Strengthening Social and Solidarity Enterprises
3 in the primary sector
43 in the secondary sector
94 in the service sector
1 in the transport sector, postal and warehousing
Subprogram Promotion and Constitution of Social and Solidarity Enterprises
13 in the primary sector
49 in the secondary sector
75 in the service sector
1 in the transport sector, postal and warehousing
The beneficiaries add up to 1419, of which 63% are women and 37% are men.
Mayoral Offices with more participation
In 2019 and 2020, the Mayoral Offices who had registered a larger number of participants in the Subprogram Promotion and Constitution of Social and Solidarity Enterprises are Iztapalapa, Coyoacán, Xochimilco, Tláhuac, Tlalpan y Milpa Alta, localities with large rural areas. These six Mayoral Offices, of a 16 total, represented 69.69% in 2019. In 2020, they represented 87.68% of all the approved social organizations.
Whereas to the Subprogram for Strengthening Social and Solidarity Enterprises the Mayoral Offices with more participants in 2019 were Tlalpan, Xochimilco, Iztapalapa, Coyoacán, Tláhuac y Milpa Alta, which represent 75.45%. Until July 2020, Tlalpan, Iztapalapa, Coyoacán, Álvaro Obregón, Xochimilco y Gustavo A. Madero, shows more participation with 78.01% of all approved social organizations.
Mexico City Government bet is to keep strengthening this sector, by offering legal certainty, the protection of fundamental rights, direct and indirect economic support, while making dissemination and linkage activities, as well as promoting international exposure of the sector in important spaces such as GSEF2021, through alliances between the national government and international bodies such as the Global Forum.