The aim of this paper is to analyze the consolidation of rural credit cooperatives (RCC) in Ecuador in the topic of cooperatives failures and recoveries, and taking into account the needs of socio-economic strengthening. Our research is located in the stage called transversal approach to the Ecuadorian cooperatives development and has to include crucial decision-making moments and the stage of crisis and transformation, where the level of analysis are macroeconomic (legal and socio-economic) factors, which play an important role.
The system of Ecuadorian rural cooperatives is widely recognized worldwide, becoming a key player in the economic and financial development of this society. Ecuador's financial system is characterized for being dynamic, inclusive and flexible. It is being reoriented to microfinance, since these RCC can help to transform the economy and include poor people, in order to provide progress to the democratic system.
Therefore, our research aims not only to chronologically describe the process that the RCC had to face (mainly disinterest from Ecuador government for thirty years) but also to show its strengthening during the nineties in the process of dollarization, and their public recognition with a specific law (Ley Orgánica de Economía Popular y Solidaria del Sector Financiero Popular y Solidario) in the twenty-first century.
The methodology used in this work includes a systematic literature review, the development of a comparative study, the analysis of the most relevant documents and a critical discussion of the evidence found. The main contribution of this paper is to point out the challenges that currently face the RCC, related to equal legal conditions with other financial institutions, rehabilitation, governance, strategy, and regulation and supervision, giving rise to future research.
Keywords: Cooperative, microcredit, rural, finance, transformation.
Bibliographic References
Cuevas, C. (2013). Pertinencia y desafios actuales de las cooperativas de ahorro y crédito. (G. Westley & B. Branch, Eds.) (Vol. 53). Washington, DC: Banco Interamericano de Desarrollo Consejo Mundial de Cooperativas de Ahorro y Crédito, 55-67.
Miño, W. (2015). La historia inmediata, el cooperativismo y la revolución ciudadana, 2007-2012. Ministerio de Coordinación de Política Económica (Editogran, Vol. 1). Quito, 109-124.
