Social and Solidarity Economy in Ecuador: Fostering an Alternative Development Model?

The social and solidarity economy (SSE) has gained worldwide attention over the last decade. It represents a host of diverse economic activities which take different forms in each country, but which share solidarity values that are alternatives to mainstream market economic logics. In Ecuador, the SSE acquired legal status in the 2008 Constitution that aimed to foster an alternative development model based on the Buen Vivir (BV) paradigm. However, despite a broad new regulatory framework for the SSE, the implementation of specific policies faces significant challenges. This article, based on fieldwork and interviews with many stakeholders, critically analyzes the transformative scope of the policies of the main newly created institution (IEPS—Instituto de Economía Popular y Solidaria). We discuss policy challenges focusing on trade-offs for small rural producers due to their dependent market integration and overall flaws in fulfilling SSE solidarity values.This research was funded by Basque Government, grant number IT-1307 and the APC was funded by authors