A set of principles, rules and economic models that lead to a legal framework to legitimize p2p, open and collaborative socioeconomic practices.

The 4th sector is proposed in continuity with the development of the public, private and the social (or solidarity) sectors.

Characteristics

Organizations that are designed to function without the need of the State to support their existence and without the need the Market for their subsistence. In other words, contrary to 3rd sector organizations, who really on the help of the state (funding, relations, etc.), 4th sector organizations are started and supported by individual members or affiliates. Moreover, 4th sector organizations do not need to generate profit to thrive, they don't need to offer goods of services.

4th Sector Organizations are designed to deal with complexity.

History

The term was proposed by Sensorica in May 2019, during their effort to create a legal framework for the collaborative economy in Quebec, Canada, published in the 4th Sector Rationale. This was done in the context of the NOICE initiative.

The NOICE project's main goal was to create a special economic zone in Montreal, Canada, to explore and experiment with p2p practices, collaborative economy, commons-based peer production.

The term 4th sector was strategically chosen by sensoricans to relate to the past development of the 3th sector in Quebec and make it easier for politicians to digest. It provided a road map based on the historical achievements of Le Chantier de l'Economie Sociale, a Quebec advocacy group that helped institutionalize the social economy in Quebec and throughout Canada. This led to the creation of social economy ministries at the provincial and the federal level.

4th Sector vs the 3rd Sector

The p2p, open and collaborative economy cannot be subsumed to the social economy. The legal forms created to channel efforts in the social economy are not adequate for open network type organizations that are prevalent in the p2p sphere. Moreover, the governance and economic models used in the p2p economy do not fully map into the social economy.

Social norms

Social norms of the 4th sector

The peer-to-peer (P2P) decentralized sector operates on a set of principles and social norms that emphasize decentralization, trustlessness, collaboration, and openness. These norms are foundational to various P2P systems, including blockchain networks and decentralized technologies. Here are some key social norms that characterize the P2P decentralized sector:

Decentralization:

Norm: The fundamental norm is decentralization, which involves distributing control and decision-making across a network of peers rather than relying on a central authority. This enhances resilience, reduces vulnerability to single points of failure, and promotes a more democratic approach to governance.

Trustlessness:

Norm: P2P decentralized systems are designed to operate in a trustless environment, meaning that participants can interact and transact without relying on trust in a central authority. Trust is replaced by cryptographic algorithms and consensus mechanisms.

Immutable Ledger:

Norm: P2P decentralized systems often utilize blockchain technology, creating an immutable and tamper-resistant ledger. Once data is recorded on the blockchain, it is extremely difficult to alter, providing a high level of security and transparency.

Open Source and Collaboration: Norm: Open source development is a core norm, encouraging transparency and collaboration. Software, protocols, and technologies in the P2P decentralized sector are often developed openly, allowing anyone to view, modify, and contribute to the codebase.

Permissionless Innovation:

Norm: P2P systems typically allow for permissionless innovation, meaning that individuals or developers can build on top of existing protocols or create new applications without seeking permission from a central authority. This fosters creativity and a dynamic ecosystem.

Cryptography for Security:

Norm: Cryptography is a crucial norm for securing transactions and communications in P2P decentralized systems. It ensures the privacy and integrity of data without relying on a trusted third party.

Privacy and User Control:

Norm: P2P decentralized systems prioritize user privacy and control over personal data. Participants have more control over their own information, and privacy features are often built into the architecture.

Consensus Mechanisms:

Norm: Consensus mechanisms, such as proof-of-work or proof-of-stake, are employed to achieve agreement among network participants without a central authority. These mechanisms enable the validation of transactions and the maintenance of a consistent and secure ledger.

Tokenization and Incentives:

Norm: Tokenization is often used to represent value within P2P decentralized systems. Incentive mechanisms, such as token rewards, are employed to motivate participants to contribute resources, validate transactions, or maintain the network.

Interoperability:

Norm: Interoperability is valued, allowing different decentralized systems and protocols to work together seamlessly. This norm promotes a broader and more inclusive ecosystem.

Community Governance:

Norm: Decentralized systems often embrace community-driven governance models. Participants in the network have a say in decision-making processes, protocol upgrades, and other matters that affect the ecosystem.

Resilience and Redundancy:

Norm: P2P decentralized systems aim for resilience and redundancy to ensure the continued functioning of the network even in the face of disruptions or attacks. This is achieved through distributed architecture and multiple nodes.

These social norms collectively contribute to the ethos of the P2P decentralized sector, fostering a dynamic, open, and secure environment where participants can interact without relying on traditional central authorities. The decentralized nature of these systems aligns with principles of autonomy, collaboration, and the democratization of access to resources and information.

Public sector social norms

The social norms that underpin the public sector are shaped by the principles of public service, accountability, transparency, and the pursuit of the public good. While social norms can vary between countries and regions, here are some key principles and social norms that commonly define the public sector:

Public Service Ethic Norm: The public sector is built on a strong ethic of serving the public interest. Public servants are expected to prioritize the well-being and needs of the citizens they serve. Accountability and Responsibility: Norm: Public officials are accountable for their actions and decisions. There is an expectation that public servants should act responsibly, efficiently, and in compliance with established laws and regulations. Transparency: Norm: Transparency is a fundamental norm in the public sector. Citizens have the right to access information about government activities, decision-making processes, and the use of public resources. Impartiality and Fairness: Norm: Public sector employees are expected to act impartially and without bias in the execution of their duties. Decisions and actions should be fair and just, considering the diverse needs of the population. Rule of Law: Norm: Adherence to the rule of law is a cornerstone of the public sector. Government actions and policies are expected to be consistent with established legal frameworks, ensuring a just and orderly society. Political Neutrality: Norm: Public servants are generally expected to remain neutral and serve the interests of the public, regardless of political affiliations. Political influence on decision-making should be minimized. Efficiency and Effectiveness: Norm: While public sector organizations may face bureaucratic challenges, there is a normative expectation for efficiency and effectiveness in the delivery of public services. Public resources should be utilized responsibly. Inclusivity and Accessibility: Norm: The public sector should strive for inclusivity and accessibility, ensuring that services and resources are available to all citizens, regardless of socioeconomic status, ethnicity, or other factors. Public Participation: Norm: Public participation is encouraged to ensure that citizens have a voice in decision-making processes. Governments often seek input from the public on policies and initiatives that impact the community. Stewardship of Public Resources: Norm: Public sector employees are entrusted with the responsible stewardship of public resources. Fiscal responsibility and ethical financial management are emphasized. Long-Term Vision and Planning: Norm: The public sector is expected to adopt a long-term perspective in planning and policymaking to address the evolving needs of society and ensure sustainable development. These social norms collectively contribute to the establishment of a public sector that operates in the best interest of the public and upholds the values of democracy, fairness, and accountability. While challenges and variations exist, these norms provide a foundation for the ethical and effective functioning of public institutions. Private sector social norms The social norms that underpin the private sector are influenced by principles of entrepreneurship, profit motive, competition, efficiency, and responsiveness to market dynamics. While specific norms can vary among industries and companies, here are some key social norms that commonly characterize the private sector: Profit Motive: Norm: The primary goal of the private sector is to generate profit. Companies operate with the aim of maximizing shareholder value and financial returns. Competitiveness: Norm: Competition is a driving force in the private sector. Companies strive to gain a competitive edge in the marketplace by offering innovative products, efficient services, and strategic advantages over rivals. Customer-Centric Approach: Norm: The private sector places a strong emphasis on meeting customer needs and preferences. Companies aim to provide products and services that satisfy customer demands to build loyalty and gain market share. Efficiency and Productivity: Norm: Efficiency is a key norm in the private sector. Companies seek to optimize operations, reduce costs, and enhance productivity to remain competitive and maximize profits. Innovation and Risk-Taking: Norm: Innovation is encouraged to drive growth and gain a competitive advantage. Companies often embrace risk-taking as part of the entrepreneurial spirit, aiming for breakthroughs in products, services, or business models. Adaptability and Flexibility: Norm: Private sector organizations are expected to be adaptable and flexible in response to changing market conditions, technological advancements, and shifts in consumer preferences. Ownership and Shareholder Value: Norm: Private companies are owned by individuals, investors, or shareholders who expect a return on their investment. Decisions are often guided by the need to enhance shareholder value and fulfill fiduciary responsibilities. Entrepreneurship and Initiative: Norm: Entrepreneurial spirit and individual initiative are valued in the private sector. Companies often encourage employees to take initiative, innovate, and contribute to the company's success. Market-Driven Decision-Making: Norm: Decisions are often influenced by market dynamics, including demand, supply, and competition. Companies focus on aligning their strategies with market trends and consumer behavior. Flexibility in Employment: Norm: Employment relationships in the private sector often allow for greater flexibility. Companies may adopt diverse employment arrangements, including part-time, contract, and temporary positions. Corporate Social Responsibility (CSR): Norm: While profit-making is a primary goal, many private sector companies recognize the importance of CSR. They may engage in socially responsible practices, contribute to community development, and address environmental concerns. Performance-Based Rewards: Norm: Compensation and rewards in the private sector are often tied to individual and organizational performance. High performance is typically recognized and rewarded. Incentives for Innovation and Creativity: Norm: Companies encourage a culture of innovation and creativity by providing incentives, such as bonuses or recognition, for employees who contribute novel ideas or solutions. These social norms collectively shape the behavior and operations of private sector entities, fostering a dynamic and competitive environment focused on profit generation and market success. It's important to note that individual companies within the private sector may vary in their adherence to these norms based on industry, corporate culture, and business strategy. Social norms of the 3rd sector The cooperative or solidarity sector, non-profit organizations (NGOs), and other entities in the social sector are often built on principles that prioritize collaboration, community well-being, and social impact over profit. While specific norms can vary among organizations, especially considering the diversity within the non-profit sector, here are some key social norms that commonly characterize these entities: Cooperative or Solidarity Sector: Cooperation and Mutual Aid: Norm: The cooperative sector emphasizes cooperation and mutual aid among members. Entities in this sector are often formed by individuals or businesses with shared goals, and they work together for mutual benefit. Democratic Decision-Making: Norm: Cooperatives typically adhere to democratic decision-making processes, where members have an equal say in key decisions that affect the organization. This inclusivity fosters a sense of ownership and participation. Shared Ownership and Control: Norm: Cooperative entities are collectively owned and controlled by their members. This shared ownership structure ensures that decisions are made with the interests of the entire community in mind. Fair Distribution of Benefits: Norm: There is a commitment to fair distribution of benefits among members. Profits, when generated, are often shared equitably among members rather than being concentrated in the hands of a few. Community-Centric Focus: Norm: Cooperatives prioritize the well-being of the community they serve. Whether in agriculture, finance, or other sectors, the focus is on meeting the needs of members and contributing to the local community. Non-Profit Organizations (NGOs): Mission-Driven Purpose: Norm: Non-profit organizations are driven by a mission to address social, environmental, or community needs. The primary focus is on creating positive social impact rather than generating profits for stakeholders. Volunteerism and Altruism: Norm: Many non-profit organizations rely on volunteers and individuals motivated by altruism. Volunteers contribute their time and skills to advance the organization's mission without expecting financial compensation. Accountability to Stakeholders: Norm: Non-profits are accountable to their stakeholders, including donors, beneficiaries, and the wider community. There is an emphasis on transparency and responsible use of resources to maintain public trust. Advocacy and Social Justice: Norm: NGOs often engage in advocacy work and social justice initiatives to address systemic issues and promote positive change. They may work to influence policies and practices for the greater good. Sustainability and Long-Term Impact: Norm: Non-profits often focus on achieving sustainable and long-term impact rather than short-term gains. Strategies are designed to create lasting change and address the root causes of social issues. Collaboration and Partnerships: Norm: Collaboration with other NGOs, governmental agencies, and private entities is common. Non-profits recognize the importance of partnerships to maximize their impact and leverage resources. Transparency in Operations: Norm: Transparency is a crucial norm in the non-profit sector. NGOs strive to be transparent about their operations, financial management, and the results of their programs to maintain credibility. Inclusivity and Empowerment: Norm: Non-profits often focus on inclusivity and empowerment, seeking to involve diverse communities in their programs and initiatives. Empowering individuals and communities to be self-sufficient is a common goal. Non-Distribution Constraint: Norm: Non-profit organizations operate under a non-distribution constraint, meaning that any surplus or financial gains are not distributed to individuals or stakeholders but are reinvested in the organization's mission. General Social Sector Norms: Ethical Conduct: Norm: High ethical standards are expected in the social sector. Entities prioritize ethical conduct in all interactions, including fundraising, program implementation, and stakeholder engagement. Community Engagement: Norm: Community engagement is a key norm. Whether in cooperatives or non-profits, involving the community in decision-making processes and understanding their needs is essential. Public Benefit Orientation: Norm: The overall orientation is towards providing a public benefit. Entities in this sector aim to contribute positively to society, whether through economic cooperation, social programs, or environmental initiatives. Flexibility and Adaptability: Norm: The social sector values flexibility and adaptability to respond effectively to changing circumstances, emerging needs, and evolving community dynamics. Measuring Impact: Norm: There is an emphasis on measuring and evaluating the impact of programs and initiatives. Non-profits often engage in rigorous impact assessment to ensure accountability and continuous improvement. These social norms collectively contribute to the unique character and mission-driven focus of entities in the cooperative or solidarity sector and non-profit organizations. They reflect a commitment to values beyond financial gain and a dedication to making a positive difference in the lives of individuals and communities.

Social norms of the 4th sector The peer-to-peer (P2P) decentralized sector operates on a set of principles and social norms that emphasize decentralization, trustlessness, collaboration, and openness. These norms are foundational to various P2P systems, including blockchain networks and decentralized technologies. Here are some key social norms that characterize the P2P decentralized sector: Decentralization: Norm: The fundamental norm is decentralization, which involves distributing control and decision-making across a network of peers rather than relying on a central authority. This enhances resilience, reduces vulnerability to single points of failure, and promotes a more democratic approach to governance. Trustlessness: Norm: P2P decentralized systems are designed to operate in a trustless environment, meaning that participants can interact and transact without relying on trust in a central authority. Trust is replaced by cryptographic algorithms and consensus mechanisms. Immutable Ledger: Norm: P2P decentralized systems often utilize blockchain technology, creating an immutable and tamper-resistant ledger. Once data is recorded on the blockchain, it is extremely difficult to alter, providing a high level of security and transparency. Open Source and Collaboration: Norm: Open source development is a core norm, encouraging transparency and collaboration. Software, protocols, and technologies in the P2P decentralized sector are often developed openly, allowing anyone to view, modify, and contribute to the codebase. Permissionless Innovation: Norm: P2P systems typically allow for permissionless innovation, meaning that individuals or developers can build on top of existing protocols or create new applications without seeking permission from a central authority. This fosters creativity and a dynamic ecosystem. Cryptography for Security: Norm: Cryptography is a crucial norm for securing transactions and communications in P2P decentralized systems. It ensures the privacy and integrity of data without relying on a trusted third party. Privacy and User Control: Norm: P2P decentralized systems prioritize user privacy and control over personal data. Participants have more control over their own information, and privacy features are often built into the architecture. Consensus Mechanisms: Norm: Consensus mechanisms, such as proof-of-work or proof-of-stake, are employed to achieve agreement among network participants without a central authority. These mechanisms enable the validation of transactions and the maintenance of a consistent and secure ledger. Tokenization and Incentives: Norm: Tokenization is often used to represent value within P2P decentralized systems. Incentive mechanisms, such as token rewards, are employed to motivate participants to contribute resources, validate transactions, or maintain the network. Interoperability: Norm: Interoperability is valued, allowing different decentralized systems and protocols to work together seamlessly. This norm promotes a broader and more inclusive ecosystem. Community Governance: Norm: Decentralized systems often embrace community-driven governance models. Participants in the network have a say in decision-making processes, protocol upgrades, and other matters that affect the ecosystem. Resilience and Redundancy: Norm: P2P decentralized systems aim for resilience and redundancy to ensure the continued functioning of the network even in the face of disruptions or attacks. This is achieved through distributed architecture and multiple nodes. These social norms collectively contribute to the ethos of the P2P decentralized sector, fostering a dynamic, open, and secure environment where participants can interact without relying on traditional central authorities. The decentralized nature of these systems aligns with principles of autonomy, collaboration, and the democratization of access to resources and information.

Fourth sector

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