Social Enterprise in Ecuador: Institutionalization and Types of Popular and Solidarity Organizations in the Light of Political Embeddedness
This paper is part of the ICSEM project, which aims to build a typology of social enterprises at the international level in collaboration with research teams from all over the world (see www.iap-socent.be/icsem-project). One of the main axes of the project aims to compare social enterprise models worldwide and their respective institutionalization processes. It is important to underline that the notion of "social enterprise" is unusual in Ecuador. Social actors and practitioners engaged in promoting alternative economic models (not linked to the private capitalistic model nor to the public statist model) have recognized themselves through historically established concepts (e.g. cooperativism and associations) or more recent expressions such as the "popular and solidarity economy". The latter emerged from theoretical and conceptual contributions by Latin American scholars (e.g. Coraggio 1999; Razeto 1984; Singer 2000) who analyzed practices of production, exchange, consumption of goods and services, and finance not driven by the sole purpose of profit maximization. The concept of solidarity economy also gained relevance within the public debate through the rise of anti-neoliberalism and anti-globalization activism by civil society organizations in the last three decades, and more particularly in the aftermath of the World Social Forum in 2001. Moreover, since the second half of the 2000s, the rise of the so-called "new left" governments in Latin America (Ellner 2012) encouraged particular trajectories of conceptual construction and institutionalization of the solidarity economy (Coraggio 2011; Hillenkamp and Wanderley 2015; Lemaître et al. 2011). The institutionalization of the solidarity economy is considered as a part of a project of state transformation driven by an apparent post-neoliberal turn (Ettlinger and Hartmann 2015; Molyneux 2008). In this context, since 2008, the term of "popular and solidarity economy" (economía popular y solidaria) has been the concept used by Ecuadorian state officials for public policy design and implementation as well as bureaucratic intervention (Nelms 2015). Due to its heuristic relevance, and since it draws close to the EMES social enterprise theoretical framework (Defourny and Nyssens 2013), the "popular and solidarity economy" (for simplification, hereafter referred to by its Spanish acronym, EPS) will be the object of study in the Ecuadorian case for the ICSEM Project. The aim of this paper is threefold. First, we present a synthetic theoretical framework concerning institutionalization and the concept of embeddedness (section 2). Through an institutionalist and historical perspective (Polanyi 1944), we review the main historical traditions that led to a political and legal recognition of EPS initiatives in Ecuador as well as their enrollment in public policies. Section 3 drafts four models of EPS organizations, each drawn from one of the sources of institutionalization previously presented. Through a synthetic analysis, in the light of the ideal-type proposed by EMES (Defourny and Nyssens 2013) and the works of Hillenkamp and Laville (2015), we identify some distinctive features of the different models regarding their legal forms, type of mission, governance structure, and resources. These models are also illustrated in different fields of activity, both established and emerging in the Ecuadorian landscape. We conclude by some final considerations regarding the social enterprise and solidarity economy research agenda.