The Evolution of the Social and Impact Economy in Argentina

Abstract

The new social and impact economy in Argentina expressed in new hybrid forms of engagement that seek to create social value through business models in a financially sustainable form is the result of the dynamics created by several international actors working in the country since the beginning of the last decade, the growth of an entrepreneurial culture among young professionals in general and among those socially and environmentally concerned, and public policies and programs supporting and financing startups. To understand the emergence of the new social and impact economy in Argentina, this chapter begins with a discussion of how social economy has been understood and how it evolved in this country, paying special attention to the impact of the severe 2001–2002 economic, social, and political crisis confronted by Argentina and the public policies that were pursued after that crisis, during the 2003–2015 period (under the same political orientation), and the following federal administration (with a different political orientation). Government incentives and support for the new social economy were very active during the period 2015–2019. At the same time, a private sector support ecosystem emerged in the last few years to promote hybrid forms of organizations and finance mechanisms addressed to them. However, laws and regulations that contribute to an enabling environment for the expansion and consolidation of the new social and impact economy have not been adjusted accordingly. In addition, the fragile financial situation of the country’s economy during 2019 and early 2020 (even before the world entered into the pandemia) created a very volatile situation for them. In spite of these restrictions and limitations in the enabling environment, the creative and innovative spirit is pervasive among the new social and impact economy actors of Argentina. This inner energy, together with the influence of international actors and processes, makes it possible to anticipate its growth as a driving force for social and economic inclusion, and sustainable development in the coming years.