The social and solidarity economy (SSE) has moved from the margins of political debate to the center of global discussions on sustainable development. In 2023, the United Nations General Assembly adopted its first resolution on \u201cPromoting the Social and Solidarity Economy for Sustainable Development,\u201d recognizing that SSE entities can play a vital role in achieving the Sustainable Development Goals (SDGs). This recognition has been reinforced by subsequent policy documents and briefings that present the SSE as a key lever to address poverty and inequality \u201cbeyond growth,\u201d emphasizing human rights, decent work, and climate resilience. In this context, non-governmental organizations (NGOs) cease to be mere peripheral implementers and emerge as central actors in the institutional architecture of the SSE.<\/p>\n\n\n\n
At the same time, empirical evidence regarding the contribution of NGOs to development outcomes is becoming clearer. Recent World Bank analyses show that regions experiencing a massive deregistration of NGOs have seen a measurable deterioration in social stability, suggesting that the presence of NGOs \u201cmakes a difference\u201d in terms of social cohesion and development. This is particularly relevant in a context marked by overlapping crises\u2014climate emergency, pandemics, and geopolitical shocks\u2014where traditional growth-focused development models have failed to produce inclusive and resilient outcomes. In this new political economy, the question is no longer whether NGOs matter, but how they can reposition themselves within the social economy to produce systemic change rather than fragmented, isolated project-based responses.<\/p>\n\n\n\n
The United Nations resolution on the SSE is more than a symbolic gesture. The text encourages Member States to create favorable legal frameworks, tax incentives, and socially responsible public procurement regimes that recognize and strengthen SSE entities, including cooperatives, mutuals, associations, and social enterprises. In doing so, it explicitly links the SSE to decent work, social services, gender equality, environmental protection, and local economic development, treating it as a cross-cutting public policy tool, not a marginal niche. In parallel, the United Nations Inter-agency Task Force on the Social and Solidarity Economy (UNTFSSE) has intensified its work, bringing together UN agencies, the African Union, and global networks to integrate the SSE into international development agendas.<\/p>\n\n\n\n
A recent United Nations policy brief, coordinated by the Special Rapporteur on extreme poverty, emphasizes that strategies focused solely on economic growth are no longer sufficient to eradicate poverty in a just and sustainable way. Instead, it identifies social and social economy organizations (SSEs) as vehicles for a \u201chuman rights economy,\u201d capable of incorporating social justice, participatory governance, and ecological sustainability into economic life. This formulation is important because it positions the SSE not as a compensatory mechanism for market and state failures, but as a structural alternative that redefines what counts as economic success. In this scenario, NGOs are called upon to move from charity-focused interventions to the role of co-architects of new economic institutions and norms.<\/p>\n\n\n\n
Research and policy analysis converge on the idea that NGOs function as a form of civic infrastructure that enables the social economy to operate. In many low- and middle-income countries, NGOs fill gaps left by limited public spending on social welfare, health, and education, becoming central channels for the provision of essential services. However, recent World Bank studies go further: they show that a higher density of NGOs in a given region is associated with better development outcomes and that their withdrawal can undermine social stability. This suggests that NGOs do not simply execute projects; they contribute to the institutional density and trust capital that underpin resilient communities and markets.<\/p>\n\n\n\n
Evidence from studies on community development and sustainability also underscores the multidimensional role of NGOs in promoting sustainable community development, from alternative healthcare to education and social justice, particularly in contexts of low state capacity. NGOs tend to possess granular knowledge of local contexts, participatory methodologies, and the ability to engage multiple stakeholders, including public authorities, private actors, and community-based groups. These capabilities are directly relevant to the social and economic development sector (SES), where democratic governance, member participation, and community ownership are central principles. NGOs can act as translators between institutional logics: they help communities navigate public programs, support governments in designing inclusive policies, and assist emerging SES entities in professionalizing without losing their social purpose.<\/p>\n\n\n\n
Despite these forces, the traditional NGO model faces well-known criticisms. Many organizations become trapped in short-term funding cycles, dependent on donor priorities and subject to compliance regimes that prioritize upward accountability at the expense of responsibility to communities. This "project-based" approach fragments local initiatives, fuels competition between organizations, and duplicates efforts, hindering the consolidation of robust long-term social and social ecosystems. Furthermore, when NGOs compensate for state failures without developing constructive political action and advocacy, they risk normalizing underinvestment in public systems and depoliticizing structural inequalities.<\/p>\n\n\n\n
Ongoing debates, including the UN Roadmap for \u201cEradicating Poverty Beyond Growth,\u201d invite NGOs to reimagine their roles. Instead of positioning themselves primarily as service providers, NGOs embedded in social and social economy ecosystems can become facilitators of systemic change. This implies a shift from isolated projects to building lasting institutions, such as social cooperatives, community funds, mutual aid networks, and multi-actor platforms. It also requires explicit engagement with power relations: supporting communities in claiming rights, co-governing services, and shaping the rules of local economies, rather than simply accessing externally defined programs.<\/p>\n\n\n\n
Several lines of practice and research demonstrate how NGOs can act as integral components of SSE ecosystems. Firstly, NGOs are knowledge mediators in the emerging global governance of the SSE. The expansion of UNTFSSE to include regional actors such as the African Union and networks such as Social Economy Europe reflects years of advocacy and technical contributions from these organizations. NGOs help bring grassroots experiences to multilateral debates, influencing resolutions, policy briefs and frameworks that, in turn, pave the way for national SSE strategies.<\/p>\n\n\n\n
Secondly, NGOs often play catalytic roles in the construction and financing of social economy entities. Studies on the financial infrastructure of the social economy highlight the importance of development banks, impact investors, and public programs, but also show that NGOs are often crucial intermediaries in enabling social cooperatives, associations, and community enterprises to access these instruments. By offering technical assistance, governance support, and risk-sharing mechanisms, NGOs allow social economy organizations to scale their operations without compromising their mission. This intermediary role gains weight when aligned with national social economy policies and socially responsible public procurement regimes, as seen in recent European discussions.<\/p>\n\n\n\n
Thirdly, NGOs contribute to monitoring and accountability in global governance initiatives, including the SDGs. Research on civil society organizations in Latin America shows that NGOs play a critical role in monitoring the implementation of the SDGs, producing independent data and pressuring governments to address inequalities and marginalized groups. Within the framework of the SSE, this function extends to the economic sphere: NGOs can help assess whether new \u201cgreen\u201d or \u201cinclusive\u201d investments effectively respect labor rights, promote gender equality, and strengthen community control over resources. In this way, they position themselves as guardians of the normative core of the SSE, and not just its operational arm.<\/p>\n\n\n\n
For NGOs to fully realize their potential in the social and solidarity economy, they will need to undergo a strategic shift: from project implementers to ecosystem builders. This transformation involves three main reorientations. First, NGOs must deliberately align their missions and programs with national and local SSE strategies, where they exist, or actively contribute to their formulation when they are not yet defined. Anchoring NGO work within broader SSE policy frameworks reduces fragmentation and increases the likelihood that successful pilots will translate into institutional change, rather than just isolated success stories.<\/p>\n\n\n\n
Secondly, NGOs need to invest in governance innovation and participatory practices. In a Social and Solidarity Economy (SSE) framework, legitimacy stems not only from impact indicators, but also from how decisions are made and who holds power. NGOs that experiment with shared ownership models, community councils, deliberative assemblies, or participatory budgets align better with the democratic ethos of SSE and model the type of institutions they aim to promote. This also implies rethinking accountability, placing responsibility to communities and peers on the same level as responsibility to funders.<\/p>\n\n\n\n
Third, donors and policymakers will have to adjust practices to make this transformation possible. Evidence shows that NGOs can significantly improve development outcomes when they are able to collaborate with governments, rather than operating under restrictive regulations or precarious funding conditions. Flexible and long-term funding, supportive legal frameworks, and inclusive policy-making spaces are essential preconditions for NGOs to act as strategic partners in building SSE ecosystems. Without these conditions, they will remain trapped in short-term and transactional relationships that weaken the systemic potential of the social and solidarity economy.<\/p>\n\n\n\n
Reconfiguring NGOs as central actors in the social and solidarity economy is not a semantic issue, but a political and institutional choice. The current global recognition of the SSE creates a window of opportunity to redesign the relationship between the state, the market, and civil society around principles of solidarity, democracy, and sustainability. NGOs that seize this moment\u2014reorienting their roles, strengthening their governance, and becoming rooted in SSE ecosystems\u2014can help transform high-level resolutions into concrete alternatives, lived in the daily lives of communities.<\/p>\n\n\n\n
References (APA)<\/strong><\/p>\n\n\n\n From Schutter, O., UN Inter-Agency Task Force on Social and Solidarity Economy, & Global Coalition for Social Justice. (2024). Policy brief on advancing a human rights economy through the social and solidarity economy<\/em>United Nations.<\/a><\/p>\n\n\n\n International Cooperative Alliance. (2024). United Nations Resolution: A Historic Milestone for the Social and Solidarity Economy<\/em>ICA Americas.<\/a><\/p>\n\n\n\n RIPESS. (2023). Adoption of the UN Resolution: Promoting the social and solidarity economy for sustainable development<\/em>Rips.<\/a><\/p>\n\n\n\n Social Economy Europe. (2023). UN General Assembly adopts the resolution \u201cPromoting the Social and Solidarity Economy for Sustainable Development\u201d<\/em>Social Economy Europe.<\/a><\/p>\n\n\n\n United Nations Inter-agency Task Force on the Social and Solidarity Economy. (2025). UN Inter-Agency Task Force on Social and Solidarity Economy \u2013 About<\/em>. UNTFSSE.<\/p>\n\n\n\n World Bank. (2024). Unpacking the impact of NGOs on development<\/em>. World Bank Impact Evaluations Blog.<\/a><\/p>\n\n\n\n World Bank. (2024). The State of Economic Inclusion Report 2024<\/em>World Bank.<\/a><\/p>\n\n\n\n Yusoff, M. S., Omar, N., & Zainal, H. (2022). Non-governmental organizations (NGOs) and their part towards sustainable community development. Sustainability, 14<\/em>(8), 4386.<\/a><\/p>\n\n\n\n Zamora, J., et al. (2020). Transformative policies for the social and solidarity economy: The new generation of public policies fostering the social economy in order to achieve sustainable development goals. Sustainability, 12<\/em>(10), 4059.<\/a><\/p>\n\n\n\n