Learning from Southern Europe: Sweden Pushes for Social Economy to Combat Poverty and Foster Regional Development

Sweden faces a critical socio-economic challenge with over 700,000 people living in poverty, prompting calls for a strategic shift toward cooperative entrepreneurship and social economy to create jobs and strengthen community cohesion. Experts emphasize that Sweden can benefit from studying the successful cooperative models in Southern Europe, particularly in Italy, Spain, and France.

Notably, the Emilia-Romagna region in Italy thrives with a cooperative sector contributing 30-40% of its GDP, marking one of the world’s most robust cooperative economies. Additionally, Spain’s Mondragon cooperatives highlight how democratic employee ownership drives innovation and competitiveness, while France has institutionalized Économie Sociale et Solidaire, supported by comprehensive cooperative research.

Swedish analysts advocate establishing a dedicated cooperative research institute to adapt these Mediterranean models to local needs, aiming to revitalize regional development and sustain communities nationwide. This approach is seen as essential to overcoming the limitations of traditional public-private frameworks and addressing complex social challenges.

Meanwhile, on the municipal governance front, Askersunds municipality’s failure to meet its 2026 economic management goals due to capacity issues and systemic constraints reflects broader governance challenges that could undermine local development efforts. An upcoming economic analysis commissioned from the Swedish Association of Local Authorities and Regions (SKR) will assess governance and suggest improvements, indicating a growing focus on governance as a foundation for sustainable social economic progress in Sweden.