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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:
Uruguay and so on.

Bolivia,

Venezuela,

Ecuador,

 Andeancountries:
Radical
politicalpositionnotonlytoovercomeneoliberalismbutalsotorecre
ateneweconomic, social, cultural andenvironmentalconditions
 Ecuador & Bolivia: accomplished successful process of
constitutional reforms

2
Objectives

1. Toanalyzethe conceptual
andprogrammaticcontentofthesumakkawsay (SK) as
alternativetocapitalistdevelopment
2. Toanalyzetheimplementationofeconomicpolicy in
theperiodof Rafael Correa´sGovernment (2007-2012).

3
PART I: THEORETICAL VISION OF
SUMAK KAWSAY IN THE CONTEX OF
DEVELOPMENT CONCEPT CRISIS

4
Development concept crisis
1945 1975

 Feticheword
(Viola,
2000)
 Theghostofthedevelopm
ent (Quijano, 2001)
 Críticizerelevance(Ramí
rez, 2008).
 Failureof
culture
relatedtoprogresswithou
tlimits(Houtart, 2012)

MODERNIZATION / DEVELOPMENTALISM

1965 1985

DEPENDENCE THEORY

1975 1990

1977 1990
1994 2010

HUMAN DEVELOPMENT – BASIC
NECESITIES

NEOLIBERALISM
HUMAN DEVELOPMENT– HUMAN
SECURITY AND INEQUALITY

1980 2010

SUSTENTABLE DEVELOPMENT

1975 2010

ENDOGENOUS DEVELOPMENT
5

BREAKING?

POSDEVELOPMENT
Debate about SK

 Twopositions:

 Simplistic: returntothepast, culturalistvisionof ancestral
wayoflife.

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

6
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.

7
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
8
life” (Huanacuni, 2010)
SK theoretical base
DIMENTIONS

CHARACTERISTICS

Conception of development

SK deniestheconceptofdevelopment. Anotherwayoflife (Huanacuni, 2010)

Conception of underdevelopment

There is no underdevelopment in sense that after underdevelopment comes development. (Tortosa,
2011; Acosta, 2010 y 2009c)

Key variable for other development

Multifactorial: diversity in organizational forms of production, cultural identity, and nature rights
(Escobar, 2010).

Political strategy for other development

Social 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).

9
Source: Author
SK theoretical base
DIMENTIONS

LIVELIHOOD

PROPOSALS

Plural, 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

10
SK: community paradigm
 Community against individualism
 Life harmony against money
accumulation
 Traditional knowledge
 Principles: relationality,
reciprocity, correspondence and
complementarity

11
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)

12
SK: Plurinational State
 Political proposal:
Plurination State

construction

of

 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 decoloniaility (Walsh, 2009)

13
SK: Communitarian Economy
 Productiveactivities are subordinatedto social
andenvironmentalequilibrium
 Priorityof use valor overexchangevalue
 Economical base: ayllu, llacta, el jactunllacta (Simbaña,
2011: 225).

 Newtrendsforconsumers: social
andenvironmentalresponsability

14
PART II: DESIGN AND CHARACTER OF
THE ECONOMIC POLICY RELATED TO SK

15
ECONOMIC POLICIES CHARACTERIZATION

LEVELS / INTENSITY

OBJECTIVES

MEANS

Oil revenues

Legal reforms, strengthening public oil
companies

Increasing the tax burden

Legal reforms

Reforms to Central Bank, liquidity ratios,
public bank credit
Macroeconomic stability:

Tariff reforms
Tax on capital outflows

Increased external credit with China
Investment in roads, hospitals
Public investment: infrastructure, health,
education

Hydroelectric projects
Increased social spending

hard-core approach

Institutional Reforms

Increase in ministries and public enterprises

Source: Author

16
ECONOMIC POLICIES CHARACTERIZATION
LEVELS / INTENSITY

OBJECTIVES
Decentralization Reforms

Labor market reforms

MEANS
Legal reforms
Legal reforms against precarious jobs

Increasing wages

Productive development
Tax incentives, entrepreneurship

International linkages
Repudiation free trade agreements, regional
integration support

complementary approach
Supporting the social economy

Legal reforms and institutional changes
Food Sovereignty
Legal reforms, credit and training
Legal reforms
Environment
ITT Yasuni project
Foreign Direct Investment
Secundary approach
Source: Author

Legal reforms

17
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)

18
LITTLE CHANGES IN PRIMARY PRODUCTIVE MATRIX

 No changes in primary specialization (21% PIB)
 Growth: 4,2% (2007-2012)

100%

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%

90%
80%

P a r t icipación

70%
60%

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%

50%
40%
17,3% 17,9%
15,1% 15,3% 15,4% 15,7%
16,7% 16,0% 15,6%
15,8% 15,6% 15,6%
30% 17,3% 18,2%
15,5%
20%
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%
10% 23,5% 21,4%
0%
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Sector primario

Industria

Servicios

Otros elementos del PIB

19
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
20
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

21
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

22
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
23
CONCLUSIONS

24
•SK: ALTERNATIVE FOR CAPITALIST
DEVELOPMENT
•DIFICULTIES FOR IMPLEMENTING IN
ECUADOR IN SPITE OF
CONSTITUTIONAL FRAMEWORK

25
SK: PRESENT AND FUTURE
 RelationbetweenUniversal
DeclarationonCommonWellbeingofHumanityandSK paradigm

 Maincomponentsofcolectivelife:
 Relationswtihenature
 Productionof material
conditionsforlifeandspirituality;
 Political, social
andcolectiveorganization;
 Culture.

26

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Sumak kawsay ecuador presentation

  • 1. 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
  • 2. INTRODUCCIÓN Progressive Governmens in Latin America  Left-winggovernments: Uruguay and so on. Bolivia, Venezuela, Ecuador,  Andeancountries: Radical politicalpositionnotonlytoovercomeneoliberalismbutalsotorecre ateneweconomic, social, cultural andenvironmentalconditions  Ecuador & Bolivia: accomplished successful process of constitutional reforms 2
  • 3. Objectives 1. Toanalyzethe conceptual andprogrammaticcontentofthesumakkawsay (SK) as alternativetocapitalistdevelopment 2. Toanalyzetheimplementationofeconomicpolicy in theperiodof Rafael Correa´sGovernment (2007-2012). 3
  • 4. PART I: THEORETICAL VISION OF SUMAK KAWSAY IN THE CONTEX OF DEVELOPMENT CONCEPT CRISIS 4
  • 5. Development concept crisis 1945 1975  Feticheword (Viola, 2000)  Theghostofthedevelopm ent (Quijano, 2001)  Críticizerelevance(Ramí rez, 2008).  Failureof culture relatedtoprogresswithou tlimits(Houtart, 2012) MODERNIZATION / DEVELOPMENTALISM 1965 1985 DEPENDENCE THEORY 1975 1990 1977 1990 1994 2010 HUMAN DEVELOPMENT – BASIC NECESITIES NEOLIBERALISM HUMAN DEVELOPMENT– HUMAN SECURITY AND INEQUALITY 1980 2010 SUSTENTABLE DEVELOPMENT 1975 2010 ENDOGENOUS DEVELOPMENT 5 BREAKING? POSDEVELOPMENT
  • 6. Debate about SK  Twopositions:  Simplistic: returntothepast, culturalistvisionof ancestral wayoflife.  SK newparadigm: social transformation by meansofdiferent human welfare, equityandharmonywithnature. 6
  • 7. 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. 7
  • 8. 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 8 life” (Huanacuni, 2010)
  • 9. SK theoretical base DIMENTIONS CHARACTERISTICS Conception of development SK deniestheconceptofdevelopment. Anotherwayoflife (Huanacuni, 2010) Conception of underdevelopment There is no underdevelopment in sense that after underdevelopment comes development. (Tortosa, 2011; Acosta, 2010 y 2009c) Key variable for other development Multifactorial: diversity in organizational forms of production, cultural identity, and nature rights (Escobar, 2010). Political strategy for other development Social 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). 9 Source: Author
  • 10. SK theoretical base DIMENTIONS LIVELIHOOD PROPOSALS Plural, 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 10
  • 11. SK: community paradigm  Community against individualism  Life harmony against money accumulation  Traditional knowledge  Principles: relationality, reciprocity, correspondence and complementarity 11
  • 12. 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) 12
  • 13. SK: Plurinational State  Political proposal: Plurination State construction of  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 decoloniaility (Walsh, 2009) 13
  • 14. SK: Communitarian Economy  Productiveactivities are subordinatedto social andenvironmentalequilibrium  Priorityof use valor overexchangevalue  Economical base: ayllu, llacta, el jactunllacta (Simbaña, 2011: 225).  Newtrendsforconsumers: social andenvironmentalresponsability 14
  • 15. PART II: DESIGN AND CHARACTER OF THE ECONOMIC POLICY RELATED TO SK 15
  • 16. ECONOMIC POLICIES CHARACTERIZATION LEVELS / INTENSITY OBJECTIVES MEANS Oil revenues Legal reforms, strengthening public oil companies Increasing the tax burden Legal reforms Reforms to Central Bank, liquidity ratios, public bank credit Macroeconomic stability: Tariff reforms Tax on capital outflows Increased external credit with China Investment in roads, hospitals Public investment: infrastructure, health, education Hydroelectric projects Increased social spending hard-core approach Institutional Reforms Increase in ministries and public enterprises Source: Author 16
  • 17. ECONOMIC POLICIES CHARACTERIZATION LEVELS / INTENSITY OBJECTIVES Decentralization Reforms Labor market reforms MEANS Legal reforms Legal reforms against precarious jobs Increasing wages Productive development Tax incentives, entrepreneurship International linkages Repudiation free trade agreements, regional integration support complementary approach Supporting the social economy Legal reforms and institutional changes Food Sovereignty Legal reforms, credit and training Legal reforms Environment ITT Yasuni project Foreign Direct Investment Secundary approach Source: Author Legal reforms 17
  • 18. 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) 18
  • 19. LITTLE CHANGES IN PRIMARY PRODUCTIVE MATRIX  No changes in primary specialization (21% PIB)  Growth: 4,2% (2007-2012) 100% 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% 90% 80% P a r t icipación 70% 60% 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% 50% 40% 17,3% 17,9% 15,1% 15,3% 15,4% 15,7% 16,7% 16,0% 15,6% 15,8% 15,6% 15,6% 30% 17,3% 18,2% 15,5% 20% 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% 10% 23,5% 21,4% 0% 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Sector primario Industria Servicios Otros elementos del PIB 19
  • 20. 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 20
  • 21. 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 21
  • 22. 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 22
  • 23. 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 23
  • 25. •SK: ALTERNATIVE FOR CAPITALIST DEVELOPMENT •DIFICULTIES FOR IMPLEMENTING IN ECUADOR IN SPITE OF CONSTITUTIONAL FRAMEWORK 25
  • 26. SK: PRESENT AND FUTURE  RelationbetweenUniversal DeclarationonCommonWellbeingofHumanityandSK paradigm  Maincomponentsofcolectivelife:  Relationswtihenature  Productionof material conditionsforlifeandspirituality;  Political, social andcolectiveorganization;  Culture. 26