The popular and solidary economy and popular and solidarity finances in Ecuador

Abstract

The Popular and Solidarity Economy (EPS) and the Popular and Solidarity Finances (SPF) arise in Ecuador with the administration of the government known as the Citizen Revolution (January 15, 2007 - May 24, 2017), to such an extent that, The EPS is inserted in the current Constitution of the Republic of Ecuador 2008. In order to provide the EPS with its regulatory framework, the National Constituent Assembly in 2011 approved the Organic Law of the Economy and Popular and Solidarity and the Popular Financial Sector and Solidarity (LOEPS); This is the legal basis for the creation of the institutional agents: The National Popular Finance and Solidarity Corporation (CONAFIPS) in 2011 and the Superintendence of Popular and Solidarity Economy (SEPS) in 2012. In addition to the one created by the National Institute of Economics Popular and Solidarity (IEPS) in 2009, in charge of the progress of the EPS. The CONAFIPS is the one that grants financing to the organizations of the FPS, and these at the same time, finance the development of the enterprises of the EPS in the urban and rural parishes of the country; and the SEPS, is in charge of the control of the organizations of the EPS and the FPS. The objective of these institutional agents is to ensure the sustainability of the undertakings that take place in the urban and rural parishes of the country. However, they have not managed to fulfill the purpose for which they were created, due to the way they are currently organized. The results show this especially in the rural parishes, since the poverty for Unsatisfied Basic Needs (NBI) according to the National Institute of Statistics and Censuses (INEC) to December 2017 reached 56.1%.