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SUMAK KAWSAY OR WELL-BEING: PERSPECTIVES AND RESULTS IN ECUADOR 2007-2012
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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: Bolivia, Venezuela, Ecuador,Uruguay and so on.
Andeancountries: Radicalpoliticalpositionnotonlytoovercomeneoliberalismbutalsotorecreateneweconomic, 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
Feticheword (Viola,
2000)
Theghostofthedevelopm
ent (Quijano, 2001)
Críticizerelevance(Ramí
rez, 2008).
Failureof culture
relatedtoprogresswithou
tlimits(Houtart, 2012)
5
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.
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
life” (Huanacuni, 2010) 8
SK theoretical base
9
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
10
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
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: 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)
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
16
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
17
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)
18
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
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
25
•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.
26