Analysis of savings and credit unions as part of the popular and solidarity financial system. Case study: 'savings and credit union april 26

Abstract

The implementation of a social and solidarity-based economic system in Ecuador is founded on the need to overcome the limitations of the current economic model and the lack of acceptance in the global market. The focus is on justice, sustainability, and solidarity, in line with the Ecuadorian Constitution, which defines the economic system as social and solidarity-oriented (Art. 283) and outlines development goals aimed at improving the population's well-being. With the objective of countering periodic market crises and fostering inclusive practices, a more vigorous state intervention is suggested, as reflected in the Organic Law of Popular and Solidarity Economy of 2010 and the establishment of the National Corporation of Popular and Solidarity Finance (CONAFIPS). This regulation aims to support the growth of business initiatives and collaborative structures based on the social and popular economic sphere, thereby facilitating local economic integration and promoting principles such as solidarity, equity, and reciprocity. The ongoing updating of policies in the field of social and solidarity economy is highlighted, transcending a limited perspective confined to certain popular sectors, both entrepreneurs and small businesses, and focusing on coherent integration at a structural and territorial level. Moreover, it raises questions about the conventional separation between the fields of economy, politics, and culture, proposing the promotion of an economy based on cooperation rather than competition."