The Role of Public Policy and Institutional Architectures in Shaping the Development and Territorial Transformation of the Social and Solidarity Economy

This paper examines the role of public policies and institutional support in the development of the social and solidarity economy (SSE), with particular attention to institutionalization, policy instruments, organizational ecosystems and territorial outcomes. The literature reviewed shows that the development of the SSE cannot be explained by legal recognition or public financing alone. It depends on the articulation of regulatory frameworks, administrative capacities, financial mechanisms, procurement systems, intermediary organizations and multilevel governance arrangements. The review also highlights the importance of institutional context, since policy instruments operate differently according to national welfare traditions, relationships between governments and civil society, territorial conditions and historically established organizational forms. Public finance, social investment, procurement, work-integration policies and capacity-building mechanisms may strengthen SSE organizations, although they can also generate dependence, marketization or mission displacement when support is associated with restrictive performance requirements. The literature further indicates that SSE organizations can contribute to employment, gender inclusion, territorial development, social and environmental innovation and sustainable development. The paper therefore emphasizes the need for integrated and context-sensitive public policies that support organizational development while preserving autonomy, democratic governance and solidarity-based objectives.