Understanding social ownership in context: Towards a just transition in South Africa

Abstract

The concept of social ownership has re-emerged in recent years in South
Africa within the context of the just transition. The term has been
mainstreamed into policy discourse; however, it typically includes a wide
range of ownership types, even including private ownership. This risks the
dilution of its meaning. This paper aims to define and situate social
ownership in its historical and political economy context, both generally,
but also in South Africa.
We argue the key characteristics of social ownership include a
collective ownership structure, the pursuit of public benefit, democratic
control of decision-making, and an ethic of cooperation or solidarity.
Therefore, worker ownership, cooperatives, and public ownership can be
considered types of social ownership. Despite the renewed interest, social
ownership models are not new in South Africa. There are contemporary
and historic examples from which we can draw lessons and experiences.
While many of these social ownership models have successes in
pursuing public good outcomes, they have also all faced challenges in
achieving democratic governance, benefit-sharing, and financial
sustainability.
The key indicator of a successful social ownership model is its
public benefit and social return. While the resurgence of social ownership
has been applied almost exclusively to the renewable energy sector, a
just transition requires an economy-wide transition which addresses
fundamental challenges to South African society, such as inequality,
poverty and unemployment.