Building sustainable Ecuadorian co-operatives and a SSE: challenges and potentials

TOPIC 10 – STAGE 2 – MICRO In 2008 the Ecuadorian president Rafael Correa legally and constitutionally recognised the Social and Solidarity Economy (SSE) as a valid and functional developmental framework. Since then, the... [ view full abstract ]

TOPIC 10 – STAGE 2 – MICRO

In 2008 the Ecuadorian president Rafael Correa legally and constitutionally recognised the Social and Solidarity Economy (SSE) as a valid and functional developmental framework. Since then, the Ecuadorian SSE model has promoted and fostered an incipient co-operative movement in the country. In the last 8 years co-operatives and associations have become a key force that employ over 65% of the country’s workforce. However, it has been argued that the somehow abrupt creation of co-operatives and associations in Ecuador responded to a top-down approach, and as such it raised questions about the sustainability of SSE’s organisations in the country. Nonetheless, research evidence suggests that there are a growing number of low income communities that have embraced the SSE principles and values which has resulted in the formations of co-operatives and associations. Despite positive strides forward, serious concerns have emerged with regards to their capacity to innovate, their ability to include poor populations and develop resilient organisational structures. With these concerns in mind, international observers and the academic community also seek to understand the extent to which the entire Ecuadorian SSE model is able to survive without the government’s support. Given this context, this article explores the following question: how and to what extent have co-operatives and SSE’s organizations developed both inclusive innovation strategies in order to improve members’ capabilities and sustainable ways to engage with the market? This research sheds light on key under-researched themes that are also relevant to the achievement of the new UN ‘Sustainable Development Goals’. We explore the role of Information and Communication Technologies, key organisational challenges, the role of the state and the organisational ability to innovate in the face structural challenges. We outline key considerations for government and discuss the importance of developing inclusive innovation strategies. This article is the result of 9 months fieldwork in rural areas of Ecuador (June 2015 – February 2016) and builds on quantitative data, ethnographic data and in-depth interview accounts with leaders and grassroots members of co-operatives and other organisations that work in line with the SSE values and principles.