Challenging the Dominant Market Logic: The Transformative Power and Political Embeddedness of Solidarity Economy. Insights from Ecuador

Ruiz Rivera, Maria José;Giovannini, Michela;et.al.
(2023) Act locally, Change globally: Social enterprises and cooperatives for more resilient economies and societies — Location: Frankfurt University for Applied Sciences (11.September.2023)

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Solidarity economy organisations have emerged in different contexts through historically specific institutional paths, such as the cooperative tradition, associations supported by the Catholic Church, development-oriented NGOs, and more recent expressions embedded in social movements (Gaiger et al., 2019). These initiatives have vindicated a common rationale, which is not driven by the sole purpose of income generation but is based on labour value and the securitization of members' livelihoods (Hillenkamp et al., 2013). In addition, they are increasingly addressing complex social and environmental challenges (Eynaud et al., 2019). Although the transformative character of the solidarity economy within the economic sphere has proven persuasive, the political dimension of these organisations is still theoretically and empirically embryonic. Drawing on an inductive approach (documentary analysis and in-depth case studies conducted with organisations in Ecuador), this study analyses the transformative character of the solidarity economy with respect to a market society, based on a dominant formal approach to the economy and, in particular, the political dimension of these organisations. By engaging principally with Polanyi's contributions (Polanyi, 1977) and the literature on social movement (Laville et al., 2017), this study's objectives are twofold. First, we identify some critical institutional pressures that solidarity economy organisations deal with, aiming at their inscription into a predominant market logic that is detrimental to reciprocity, redistribution, and householding. Second, we explore the modes of political embeddedness (Lemaître, 2009 based on Polanyi’s work) in the solidarity economy by questioning how organisations have tackled institutional pressures. By exploring the connections between the solidarity economy and social movements, we examine the challenges that enable the emergence of a solidarity economy movement. Our findings suggest that organisations cope with increasing imperatives towards technification, professionalization, and specialization. To cope with these pressures, they have adopted strategies that involve adaptation, intercooperation, and collective action in the public sphere. Consequently, three institutional arrangements have emerged within the solidarity economy field: the conformation of regional chambers, networks, and a national movement. Beyond representation, these arrangements shed light on how organizational members' voices are integrated into the public debate and how they can influence policy development, vindicating the need for a transition towards a more substantive economy. By combining macro-institutional (based on context analysis) and meso-level analyses, this research contributes to the debate on the interplay between the solidarity economy, the market, and the state. The paper shows that organisations —through the agency of their members materialized in their socioeconomic practices and their enrolment in public action— are likely to interpret, challenge, and transform formal institutions. References Eynaud, P., Laville, J.-L., Santos, L. dos, Banerjee, S., Avelino, F., & Hulgård, L. (2019). Theory of Social Enterprise and Pluralism: Social Movements, Solidarity Economy, and Global South. Routledge. Gaiger, L. I., Nyssens, M., & Wanderley, F. (Eds.). (2019). Social Enterprise in Latin America: Theory, Models and Practice (1.a ed.). Routledge. https://doi.org/10.4324/9780429055164 Hillenkamp, I., Lapeyre, F., & Lemaître, A. (Eds.). (2013). Securing livelihoods: Informal economy practices and institutions. Oxford University Press. Laville, J.-L., Pleyers, G., Bucolo, E., & Coraggio, J. L. (2017). Mouvements sociaux et économie solidaire. Desclée de Brouwer Éditions FMSH-Fondation Maison des sciences de l’homme. https://www.editionsddb.fr/product/116453/mouvements-sociaux-et-conomie-solidaire/ Lemaître, A. (2009). Organisations d’économie sociale et solidaire. Lecture de réalités Nord et Sud à travers l’encastrement politique et une approche plurielle de l’économie. Presses universitaires de Louvain. Polanyi, K. (1977). The livelihood of man. Academia Press.
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Ruiz Rivera, M. J., Giovannini, M., & et al. (2023). Challenging the Dominant Market Logic: The Transformative Power and Political Embeddedness of Solidarity Economy. Insights from Ecuador. Act locally, Change globally: Social enterprises and cooperatives for more resilient economies and societies, Frankfurt University for Applied Sciences. https://hdl.handle.net/2078.5/215603