SUMAK KAWSAY OR WELL-BEING:

PERSPECTIVES AND RESULTS IN

ECUADOR 2007-2012

Santiago García Álvarez

CENTRAL UNIVERSITY OF ECUADOR

http://buenvivir.eumed.net

25 ANNUAL EAEPE CONFERENCE

Paris, 7-9 Nov. 2013 1

INTRODUCCIÓN

Progressive Governmens in Latin America

Left-winggovernments: Bolivia, Venezuela, Ecuador,Uruguay and so on.

Andeancountries: Radicalpoliticalpositionnotonlytoovercomeneoliberalismbutalsotorecreateneweconomic, social, cultural andenvironmentalconditions

Ecuador & Bolivia: accomplished successful process of

constitutional reforms

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Objectives

1. Toanalyzethe conceptual andprogrammaticcontentofthesumakkawsay (SK) as alternativetocapitalistdevelopment

2. Toanalyzetheimplementationofeconomicpolicy in theperiodof Rafael Correa´sGovernment (2007-2012).

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PART I: THEORETICAL VISION OF SUMAK KAWSAY IN THE CONTEX OF

DEVELOPMENT CONCEPT CRISIS

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Development concept crisis

Feticheword (Viola,

2000)

Theghostofthedevelopm

ent (Quijano, 2001)

Críticizerelevance(Ramí

rez, 2008).

Failureof culture

relatedtoprogresswithou

tlimits(Houtart, 2012)

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1945 -1975

SUSTENTABLE DEVELOPMENT

DEPENDENCE THEORY

HUMAN DEVELOPMENT– HUMAN SECURITY AND INEQUALITY

NEOLIBERALISM

1965 -1985

1975 -1990

1977 -1990

1994 -2010

ENDOGENOUS DEVELOPMENT

MODERNIZATION / DEVELOPMENTALISM

HUMAN DEVELOPMENT – BASIC NECESITIES

1980 -2010

1975 -2010

BREAKING? POSDEVELOPMENT

Debate about SK

Twopositions:

Simplistic: returntothepast, culturalistvisionof ancestral wayoflife.

SK newparadigm: social transformation by meansofdiferent human welfare, equityandharmonywithnature.

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Suppositions

SK: Theoretical notion and politic proposal located in

alternatives for capitalist development(Gudynas, 2011a

y 2010 ; Acosta, 2010 y 2009c; Escobar, 2010; Huanacuni,

2010; Simbaña, 2010)

In the real life, Rafael Correa’s economic policies has had

inconsistencies against the principles of SK because of

extractivism.

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SK theoretical base

SUMAK = fullness, sublime, magnificent, beautiful, superior,

holistic and symbiotic

KAWSAY = life

SUMAK KAWSAY = well-being

WELL-BEING is not to live better (with more and more)

SUMA QAMAÑA (Aymara language) = “fullness life” or “good

life” (Huanacuni, 2010) 8

SK theoretical base

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DIMENTIONS CHARACTERISTICS

Conception of development SK deniestheconceptofdevelopment. Anotherwayoflife (Huanacuni, 2010)

Conception of underdevelopmentThere is no underdevelopment in sense that after underdevelopment comes development. (Tortosa,

2011; Acosta, 2010 y 2009c)

Key variable for other developmentMultifactorial: diversity in organizational forms of production, cultural identity, and nature rights

(Escobar, 2010).

Political strategy for other developmentSocial Participation and Plurinational State (Acosta, 2010 and 2009a, 2009c; Escobar, 2010; Walsh,

2009).

Process for other development Change Economy priorities; to live without misery (Acosta, 2010 and 2009c).

Source: Author

SK theoretical base

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DIMENTIONS PROPOSALS

LIVELIHOODPlural, supportive and complementary Economy generates dignified life.

EQUITY Balance and social justice.

SUSTAINABILITY Living in harmony with nature. It is not possible to comercialize the nature.

EMPOWERMENT Social participation and direct democracy. Proper indigenous political system.

CAPABILITIES Expand human capabilities: health and education

EMOTIONAL Living together in harmony.

Source: Author

SK: community paradigm

Community against individualism

Life harmony against money

accumulation

Traditional knowledge

Principles: relationality,

reciprocity, correspondence and

complementarity

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SK: Biocentrism

Harmony with Pacha Mama

Take care natural cycles of

production an re-production

Biocentrism implies rights for

nature

Biocentrism is similar to super

hard sustentability (Gudynas,

2011b)

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SK: Plurinational State

Political proposal: construction of

Plurination State

Plurinational State = anticolonial,

inclusive and democratic (Walsh, 2009).

It means “another” State (Quijano,

2006)

Interculturality is partially right but also it

is necessary plurinacionality and de-

coloniaility (Walsh, 2009)

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SK: Communitarian Economy

Productiveactivities are subordinatedto social

andenvironmentalequilibrium

Priorityof use valor overexchangevalue

Economical base: ayllu, llacta, el jactunllacta (Simbaña,

2011: 225).

Newtrendsforconsumers: social

andenvironmentalresponsability

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PART II: DESIGN AND CHARACTER OF THE ECONOMIC POLICY RELATED TO SK

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ECONOMIC POLICIES CHARACTERIZATION

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LEVELS / INTENSITY OBJECTIVES MEANS

hard-core approach

Oil revenues

Legal reforms, strengthening public oil

companies

Increasing the tax burden Legal reforms

Macroeconomic stability:

Reforms to Central Bank, liquidity ratios,

public bank credit

Tariff reforms

Tax on capital outflows

Increased external credit with China

Public investment: infrastructure, health,

education

Investment in roads, hospitals

Hydroelectric projects

Increased social spending

Institutional Reforms Increase in ministries and public enterprises

Source: Author

ECONOMIC POLICIES CHARACTERIZATION

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LEVELS / INTENSITY OBJECTIVES MEANS

complementary approach

Decentralization Reforms Legal reforms

Labor market reformsLegal reforms against precarious jobs

Increasing wages

Productive development

Tax incentives, entrepreneurship

International linkages

Repudiation free trade agreements, regional

integration support

Secundary approach

Supporting the social economyLegal reforms and institutional changes

Food Sovereignty

Legal reforms, credit and training

Environment

Legal reforms

ITT Yasuni project

Foreign Direct Investment

Legal reforms

Source: Author

ECONOMIC POLICY CHARACTERIZATION

GOVERNMENT HAS BEEN IMPLEMENTING SYSTEMIC

COMPETITIVENESS APPROACH (Leiva, 2008)

Changing relative prices toward more proficiency

sectors

Promoting financial and nonfinancial resources

Economic growth and active income distribution

Dephening primary production (extractivism)

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LITTLE CHANGES IN PRIMARY PRODUCTIVE MATRIX

No changes in primary specialization (21% PIB)

Growth: 4,2% (2007-2012)

23,5% 21,4% 24,9% 23,5% 23,3% 22,4% 23,4% 26,0% 25,6% 25,5% 24,1% 23,0% 22,7% 21,9% 21,3%

17,3% 18,2%17,3% 17,9% 16,7% 16,0% 15,6%

15,1% 15,3% 15,4% 15,7% 15,8% 15,6% 15,6% 15,5%

51,9% 52,7% 50,5% 51,7% 52,6% 52,9% 52,6% 50,4% 50,7% 50,6% 51,5% 52,1% 52,6% 53,3% 54,3%

7,3% 7,7% 7,2% 6,9% 7,5% 8,7% 8,4% 8,4% 8,4% 8,4% 8,7% 9,0% 9,0% 9,2% 8,9%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Participación

Sector primario Industria Servicios Otros elementos del PIB

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VERY IMPORTANT SOCIAL GOALS

Reducing unemployment : 7.1% (2007) to 6,4% (2011)

Reducing informal employment : 51,9% (2007) to 44,2%

(2011)

Reducing poverty (income approach): 37.6% (2006) to

28,6% (2011)

Reducing inequality: Gini: 0,51% (2006) to 0,46 (2011)

Improving basic and medium education

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EXTERNAL VULNERAVILITY

Continuous deficit in commercial non oil balance

Continuos deficit in service and rent balance

No changes in export pattern (3/4 are primary)

Low international market diversification (USA+UE = 60% over

total exports)

No changes in import pattern

Low inward FDI and concentration in oil activities

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SOCIAL AND SOLIDARITY ECONOMY

IT IS PART OF LATE STAGE FOR ECONOMIC POLICY

RESTRICTIVE APPROACH RELATED TO

INSTITUTIONAL CHANGES

PROMOTION OF FINANCIAL AND NON FINANCIAL

INCENTIVES

MARGINAL POLICIES FOR SOCIAL COMPENSATION

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FOOD SOVEREIGNITY

INCREASING EXPORT CROPS (bananas, coffee, oil palm,

sugar cane)

REDUCING NON PERMANENT CROPS FOR INTERNAL

CONSUME

INCREASING IMPORT FOODS: (meat, vegetable oils,

cereals, etc.)

SHORT-TERM POLICIES

NO AGRICULTURAL REFOM

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CONCLUSIONS

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•SK: ALTERNATIVE FOR CAPITALIST DEVELOPMENT

•DIFICULTIES FOR IMPLEMENTING IN ECUADOR IN SPITE OF CONSTITUTIONAL FRAMEWORK

SK: PRESENT AND FUTURE

RelationbetweenUniversal

DeclarationonCommonWell-

beingofHumanityandSK paradigm

Maincomponentsofcolectivelife:

Relationswtihenature

Productionof material

conditionsforlifeandspirituality;

Political, social

andcolectiveorganization;

Culture.

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