Revista Multidisciplinaria Perspectivas Investigativas
Multidisciplinary Journal Investigative Perspectives
Vol. 4(4), 1-13, 2024
https://doi.org/10.62574/rmpi.v4i4.223
1
Epistemological bases of welfare and the financial vulnerability of the
popular and solidarity economy
Bases epistemológicas del bienestar y la vulnerabilidad financiera de la
economía popular y solidaria
Luis Daniel Nauta-Padilla
luis.nauta1236@utc.edu.ec
Universidad Técnica de Cotopaxi, Latacunga, Cotopaxi, Ecuador
https://orcid.org/0009-0003-5414-7913
Marco Antonio Veloz-Jaramillo
marco.veloz@utc.edu.ec
Universidad Técnica de Cotopaxi, Latacunga, Cotopaxi, Ecuador
https://orcid.org/0000-0002-3178-7278
Anthony Javier Puente-Gallo
Anthony.puente5552@utc.edu.ec
Universidad Técnica de Cotopaxi, Latacunga, Cotopaxi, Ecuador
https://orcid.org/0009-0003-0063-6578
Robert Patricio Moreno-Minsalve
Robert.moreno1980@utc.edu.ec
Universidad Técnica de Cotopaxi, Latacunga, Cotopaxi, Ecuador
https://orcid.org/0009-0005-0618-6314
ABSTRACT
The popular and solidarity economy emerges as an alternative to the traditional capitalist model,
focusing on principles of solidarity, collective participation and sustainability. In consideration of
this, the research objective was based on analysing the epistemological bases of well-being and
the financial vulnerability of the popular and solidarity economy. The methodological vision of
this research is based on documentary hermeneutics, the total study population is composed of
25 sources, distributed in 23 articles and 2 books. The interrelation between the epistemological
bases of welfare and financial vulnerability in the popular and solidarity economy shows key
aspects that must be considered to ensure the sustainability of this model. In terms of well-
being, solidarity, equity and the focus on Buen Vivir are essential pillars that promote social
cohesion, active participation and environmental sustainability.
Descriptors: economic systems; collective economy; economies in transition (Source:
UNESCO Thesaurus).
RESUMEN
La economía popular y solidaria surge como una alternativa al modelo capitalista tradicional, al
centrarse en principios de solidaridad, participación colectiva y sostenibilidad. En consideración
a lo planteado, el objetivo de investigación se fundamentó en analizar las bases
epistemológicas del bienestar y la vulnerabilidad financiera de la economía popular y solidaria.
La visión metodológica de esta investigación se fundamenta en la hermenéutica documental, la
población total de estudio se compone de 25 fuentes, distribuidas en 23 artículos y 2 libros. La
interrelación entre las bases epistemológicas del bienestar y la vulnerabilidad financiera en la
economía popular y solidaria evidencia aspectos clave que deben ser considerados para
asegurar la sostenibilidad de este modelo. En términos de bienestar, la solidaridad, la equidad
y el enfoque en el Buen Vivir son pilares esenciales que promueven la cohesión social, la
participación activa y la sostenibilidad medioambiental.
Descriptores: sistema económico; economía colectiva; economías en transición. (Fuente:
Tesauro UNESCO).
Received: 13/07/2024. Revised: 18/07/2024. Approved: 21/07/2024. Published: 01/10/2024.
Research articles section
Revista Multidisciplinaria Perspectivas Investigativas
Multidisciplinary Journal Investigative Perspectives
Vol. 4(4), 1-13, 2024
Bases epistemológicas del bienestar y la vulnerabilidad financiera de la economía popular y solidaria
Epistemological bases of welfare and the financial vulnerability of the popular and solidarity economy
Luis Daniel, Nauta-Padilla
Marco Antonio, Veloz-Jaramillo
Anthony Javier Puente-Gallo
Robert Patricio Moreno-Minsalve
2
INTRODUCTION
The popular and solidarity economy emerges as an alternative to the traditional capitalist model,
focusing on principles of solidarity, collective participation and sustainability. This economic
approach is structured around the creation of community well-being and at the same time faces
significant challenges due to its financial vulnerability. Globally, authors such as Coraggio
(2013) have emphasised that the epistemological foundations of this economic model rest on
the construction of a fairer system, where social equity and collaboration replace the
individualistic competition of market economies. From this perspective, well-being is not
conceived solely as a material objective, but as a holistic goal that includes respect for nature
and social cohesion, as evidenced in studies on Buen Vivir in Ecuador (León-Serrano, 2019).
However, this model faces significant challenges in the financial sphere. The financial
vulnerability of organisations that make up the popular and solidarity economy has been
analysed by various authors, who highlight the lack of access to capital, the fragility of
supervisory systems and structural limitations in risk management (Macas-Chalán et al., 2019).
According to Saltos-Cruz et al. (2016), these weaknesses can compromise the sustainability of
solidarity organisations, especially in contexts of economic crisis. At the same time, Villalba-
Eguiluz et al. (2020) underline the resilience of these organisations, but warn that such
resilience depends on the creation of public policies that strengthen their financial stability.
In consideration of the above, the research objective was based on analysing the
epistemological bases of well-being and the financial vulnerability of the popular and solidarity
economy.
METHOD
The methodological approach of this research is based on documentary hermeneutics, a
qualitative approach that allows us to interpret, analyse and understand texts and documents
relevant to the popular and solidarity economy. Documentary hermeneutics is characterised by
unravelling the underlying meanings of texts, identifying patterns, connections and
contradictions within a corpus of documents, with the aim of constructing a robust theoretical
and conceptual analysis of the topic under study.
Therefore, the interpretative paradigm based on documentary hermeneutics was adopted, as it
allows for a reflection on the epistemological bases of well-being and financial vulnerability in
the popular and solidarity economy. This methodological perspective was fundamental to
analyse theories, concepts and previous studies that address these issues from different
currents or positions, generating a comprehensive and contextualised understanding of the
dynamics that affect the sustainability of this economic model.
The total study population consists of 25 sources, distributed in 23 articles and 2 books. The
corpus of documents analysed includes scientific articles, books, book chapters, reports and
other secondary sources, selected intentionally. The documents were chosen on the basis of
their theoretical relevance and their contribution to the analysis of the two main categories of
this research: well-being in the solidarity economy and financial vulnerability of solidarity
organisations. Key sources such as the works of Coraggio (2013), León-Serrano (2019) and
Macas-Chalán et al. (2019) were included, as well as recent studies on the resilience and
financial challenges of the solidarity economy in Latin American and global contexts.
The hermeneutic analysis was developed in several stages. First, a comprehensive reading of
the selected texts was carried out in order to identify the main concepts and central theses that
address welfare and financial vulnerability in the solidarity economy. Subsequently, a critical
interpretation of the texts was employed, seeking to understand how the authors present the
interrelationships between these two dimensions and what are the theoretical and practical
approaches proposed to mitigate vulnerabilities and promote well-being, an interpretative
synthesis was made, integrating the different perspectives and theories found in the
Revista Multidisciplinaria Perspectivas Investigativas
Multidisciplinary Journal Investigative Perspectives
Vol. 4(4), 1-13, 2024
Bases epistemológicas del bienestar y la vulnerabilidad financiera de la economía popular y solidaria
Epistemological bases of welfare and the financial vulnerability of the popular and solidarity economy
Luis Daniel, Nauta-Padilla
Marco Antonio, Veloz-Jaramillo
Anthony Javier Puente-Gallo
Robert Patricio Moreno-Minsalve
3
documentation analysed, to build a unified theoretical framework that serves as a basis for the
development of the conclusions.
RESULTS
In consideration of the approaches established in the research objective, a synoptic analysis of
the study variables is presented:
Table 1. Epistemological bases of well-being.
EPISTEMOLOGICAL
FOUNDATIONS OF
WELFARE
AUTHOR(S)
YEAR
DESCRIPTION
MAIN
CONCLUSION
Fundamentals of
social and solidarity
economy
Coraggio, J. L.
2013
It defines the foundations of the
social and solidarity economy,
emphasising its participatory
nature and its focus on collective
well-being.
The social
economy
proposes a viable
alternative to
improve collective
welfare, based on
solidarity.
The popular
solidarity economy
as a basis for the
Good Life
León-Serrano,
L.
2019
It explains how the solidarity
economy supports the concept of
Buen Vivir, promoting community
well-being in Ecuador.
Buen Vivir is
based on the
solidarity
economy, which
promotes well-
being and social
equity.
Popular and
solidarity economy:
welfare in local
communities
Bravo-Vélez,
D., et al.
2019
It analyses how the popular
solidarity economy promotes well-
being in rural communities,
fostering local economic
development.
The solidarity
economy
improves social
welfare by
strengthening the
economic fabric in
rural communities.
Solidarity economy
and its impact on
human development
Malla-
Alvarado, F.
Y., et al.
2021
It examines how the solidarity
economy contributes to well-being
through social inclusion and
equity.
The solidarity
economy boosts
human well-being
by promoting
financial and
social inclusion.
Solidarity as a
moral and political
concept
Khushf, G.
1999
Discusses solidarity as an
essential moral principle for social
and community well-being.
Solidarity is a key
value for building
collective well-
being in solidarity
economies.
Solidarity economy
networks and their
impact on social
welfare
Guarascio, C.
2022
It investigates how solidarity
economy networks promote social
welfare and local development.
Solidarity
networks improve
well-being at the
local level through
cooperation and
social innovation.
Cooperativism and
citizen participation
in social welfare
Fernández S.,
M. E.
2006
It studies cooperativism as an
instrument for improving welfare
through citizen participation.
Cooperatives are
essential for
improving welfare
by promoting
active
participation in the
Revista Multidisciplinaria Perspectivas Investigativas
Multidisciplinary Journal Investigative Perspectives
Vol. 4(4), 1-13, 2024
Bases epistemológicas del bienestar y la vulnerabilidad financiera de la economía popular y solidaria
Epistemological bases of welfare and the financial vulnerability of the popular and solidarity economy
Luis Daniel, Nauta-Padilla
Marco Antonio, Veloz-Jaramillo
Anthony Javier Puente-Gallo
Robert Patricio Moreno-Minsalve
4
economy.
Integration of social
economy principles
in sustainable
design
Galán-
Serrano, J.,
Forés-Tomás,
C., & Felip-
Miralles, F.
2018
It examines how the principles of
the social economy can be
integrated into the design of
sustainable consumer goods,
improving collective well-being.
The solidarity
economy can
contribute to
global welfare by
promoting
responsible and
sustainable
consumption.
Latin American and
European
Perspectives on the
Solidarity Economy
Battisti-Telles,
L., Marcuello-
Servós, C., &
Messias-
Bittencourt, J.
V.
2020
It compares the perspectives of
the solidarity economy in Latin
America and Europe, highlighting
their similarities and differences.
Solidarity is a
fundamental
principle in both
regions to
improve social
and economic
welfare.
The DNA of the
popular solidarity
economy in
Ecuador
Hidalgo-
Romero, P.
D., Pulgar-
Salazar, M.
E., & Coral-
Guerrero, C.
A.
2024
It explores the key characteristics
of the popular solidarity economy
in Ecuador as an alternative
economic system.
The solidarity
economy in
Ecuador is
fundamental to
promoting well-
being and social
cohesion.
Solidarity as a path
to a sustainable
world
Andersen, L.
L., Hulgård,
L., & Laville,
J.-L.
2022
It explores how the fundamentals
of solidarity are essential for
sustainable well-being in a
globalised world.
Solidarity can be
a key principle for
achieving global
welfare and
economic
sustainability.
Source: Own elaboration.
In consideration of the epistemological bases of well-being described in table 1, a conceptual
framework is revealed that is articulated from an integral perspective of social justice, inclusion
and sustainability. This economy not only responds to the failures of the capitalist market, but
also proposes a structural reconfiguration where the well-being of communities, equity and
social cohesion are established as fundamental principles. Therefore, well-being in the popular
and solidarity economy, from an epistemological perspective, transcends conventional notions
of economic development, as it is based on an emancipatory project that seeks to rebalance
social, economic and environmental relations. Solidarity, participation and sustainability are not
merely isolated components, but interact to forge a new paradigm where well-being is
understood as a collective, inclusive and holistic process, standing out in this order:
Ethical and moral dimension of welfare
From a philosophical basis, the notion of well-being in the solidarity economy is anchored in
solidarity, understood as a moral concept that transcends the boundaries of individualism and
prevailing economic utilitarianism. Therefore, Khushf (1999) argues that solidarity, as an ethical
value, redefines social relations around reciprocity and co-responsibility, essential aspects for
the construction of collective well-being. In this sense, solidarity is not only a tool for economic
redistribution, but a normative axis that structures social and community interactions in terms of
the common good.
Revista Multidisciplinaria Perspectivas Investigativas
Multidisciplinary Journal Investigative Perspectives
Vol. 4(4), 1-13, 2024
Bases epistemológicas del bienestar y la vulnerabilidad financiera de la economía popular y solidaria
Epistemological bases of welfare and the financial vulnerability of the popular and solidarity economy
Luis Daniel, Nauta-Padilla
Marco Antonio, Veloz-Jaramillo
Anthony Javier Puente-Gallo
Robert Patricio Moreno-Minsalve
5
Well-being and Good Living
The popular and solidarity economy in Latin America, especially in Ecuador, has been deeply
influenced by the cosmovision of Buen Vivir (Sumak Kawsay), a conception that transcends the
traditional limits of material well-being. Consequently, León-Serrano (2019) stresses that Buen
Vivir is based on a harmonious interrelationship between humans and nature, and the solidarity
economy plays a crucial role in promoting this conception of well-being by prioritising
sustainability, respect for human rights and intergenerational equity. This systemic and holistic
paradigm redefines well-being not only as a measure of economic success, but as an inclusive
and participatory societal goal.
Well-being through participation and cooperation
Another key epistemological pillar of well-being in the solidarity economy is the centrality of the
active participation of individuals in productive and economic processes. In this sense, Coraggio
(2013) argues that participation is not only a mechanism for economic inclusion, but also has an
emancipatory function, allowing individuals and communities to take control of their resources,
favouring collective empowerment. Cooperativism, as described by Fernández (2006), becomes
not only an economic instrument, but also a political one, which articulates processes of citizen
participation, promoting well-being that is co-constructed and democratically managed.
Solidarity networks and local welfare
In this section, (Guarascio, 2022) and Gómez-Ceballos et al. (2021) underline the role of
solidarity networks as fundamental instruments for promoting well-being at the local level. These
networks, beyond their economic impact, facilitate the creation of social capital, which
strengthens the resilience of communities in the face of economic and social crises. In this
sense, well-being is not conceived as an isolated outcome, but as a dynamic and relational
process that is built through collaboration and interdependence between local actors.
Well-being and sustainability
The integration of sustainability principles in the solidarity economy, as Galán-Serrano et al.
(2018) argue, is a crucial component for building long-term well-being. The sustainable design
of consumer goods based on the principles of the solidarity economy allows addressing present
needs without compromising the resources of future generations, thus reinforcing equitable and
sustainable well-being. This vision introduces a temporal dimension to well-being, aligning with
the principles of sustainable development and intergenerational justice.
Table 2. Financial vulnerability.
FINANCIAL
VULNERABILITY
AUTHOR(S)
YEAR
MAIN
CONCLUSION
Merger and
liquidation of
cooperatives in the
solidarity economy
Cardoso-Ruiz, G.
2020
Cooperatives face
financial
vulnerability that
can lead to merger
or liquidation,
affecting their
sustainability.
Financial analysis
of solidarity
institutions in
Ecuador
Macas-Chalán, R.,
et al.
2019
Financial
management is
key to avoid
vulnerability in
solidarity economy
institutions.
Solidarity
economy and the
Becerra-Erráez,
2021
The human
development bond
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Bases epistemológicas del bienestar y la vulnerabilidad financiera de la economía popular y solidaria
Epistemological bases of welfare and the financial vulnerability of the popular and solidarity economy
Luis Daniel, Nauta-Padilla
Marco Antonio, Veloz-Jaramillo
Anthony Javier Puente-Gallo
Robert Patricio Moreno-Minsalve
6
human
development
voucher
M. A., et al.
plays a crucial role
in mitigating
financial
vulnerability in
disadvantaged
communities.
Popular solidarity
economy in times
of crisis
Villalba-Eguiluz,
U., et al.
2020
The solidarity
economy offers
resilience
mechanisms in the
face of economic
crises, reducing
the financial
vulnerability of
communities.
Financial
vulnerability and
management in
the popular
solidarity economy
Saltos-Cruz, J. G.,
et al.
2016
Financial
supervision is
essential to avoid
financial
vulnerability in
solidarity
organisations.
Alternative
economies and
financial resilience
Zabala-Flórez, M.
F., et al.
2024
Alternative
economies
provide innovative
solutions to
reduce financial
vulnerability to
global crises.
Constitutionality
and financial
management in
the solidarity
economy
Castro-Medina, A.
2018
The constitutional
framework
provides tools to
mitigate financial
vulnerability in the
solidarity sector.
Policies and
realities of the
local solidarity
economy
Gómez-Ceballos,
G., et al.
2021
Local solidarity
economy policies
can mitigate
financial
vulnerability in
rural areas.
Cooperativism in
Ecuador: current
situation and
prospects
Fernández-
Lorenzo, A., &
Galarza-Torres, S.
P.
2023
Cooperatives lack
adequate financial
resources, which
creates
vulnerability and
affects their
sustainability.
Solidarity
economy and
decentralisation
Monje-Reyes, P.
2011
Decentralisation
can mitigate
financial
vulnerability
through
management
closer to
communities.
Revista Multidisciplinaria Perspectivas Investigativas
Multidisciplinary Journal Investigative Perspectives
Vol. 4(4), 1-13, 2024
Bases epistemológicas del bienestar y la vulnerabilidad financiera de la economía popular y solidaria
Epistemological bases of welfare and the financial vulnerability of the popular and solidarity economy
Luis Daniel, Nauta-Padilla
Marco Antonio, Veloz-Jaramillo
Anthony Javier Puente-Gallo
Robert Patricio Moreno-Minsalve
7
Vulnerability in the
popular solidarity-
based financial
system
León-Serrano, L.,
Bustos-Carpio, G.,
& Pardo-Asanza,
F.
2022
Solidarity finance
institutions face
vulnerabilities due
to limited access
to capital and
liquidity.
Source: Own elaboration.
From Table 2, financial vulnerability in the popular and solidarity economy is presented as a
complex phenomenon, encompassing both internal and external factors. Lack of access to
capital, insufficient supervisory mechanisms and reliance on community self-management limit
the capacity of solidarity institutions to withstand economic crises. However, through the
implementation of adequate public policies, the creation of financial support networks and the
promotion of alternative economies, it is possible to mitigate these risks and strengthen the
financial resilience of solidarity organisations, which are highlighted for this purpose:
The nature of vulnerability in cooperatives and solidarity organisations
The study by Cardoso-Ruiz (2020) points out that cooperatives, as one of the pillars of the
solidarity economy, face increasing vulnerability due to insufficient capital and competition in an
environment dominated by market economies. Cooperatives are subject to merger or liquidation
processes in response to financial crises, which weakens their capacity to operate and
threatens their long-term sustainability. These decisions are often influenced by a lack of
liquidity and sound financial management, putting at risk not only cooperatives, but also the
communities that depend on them for their economic livelihoods.
Financial supervision and risk management
One of the critical factors exacerbating financial vulnerability in the solidarity economy is the
lack of supervision and risk management mechanisms. Therefore, Saltos-Cruz et al. (2016)
stress the need to strengthen control and supervision systems within solidarity finance
institutions to avoid financial collapse. The lack of these systems exposes organisations to
significant financial risks, increasing their susceptibility to liquidity problems and administrative
failures. This oversight deficit not only affects the financial stability of the institutions, but also
weakens the confidence of stakeholders, limiting their ability to attract investment or support
funds.
Resilience to economic crises
The popular and solidarity economy has shown a remarkable capacity to provide resilience in
the face of economic crises, particularly in the case of Ecuador, as analysed by Villalba-Eguiluz
et al. (2020). However, financial vulnerability remains a key concern, as these organisations do
not have the same tools as traditional market actors to cope with economic downturns or
fluctuations. The solidarity economy, relying heavily on self-management and community
cooperation, has limitations in terms of access to emergency capital or government support in
times of crisis. This highlights the need to strengthen links with alternative or public financial
institutions that can offer support mechanisms in situations of vulnerability.
Limited access to capital and finance
Another key aspect of financial vulnerability in the solidarity economy is limited access to
sources of finance, which restricts the growth and stability of solidarity institutions.
Consequently, Gómez-Ceballos et al. (2021) argue that local policies in Ecuador still do not
provide sufficient financial support to productive associations within the popular and solidarity
economy. This limited access to capital makes organisations more vulnerable to market
fluctuations and less able to expand or innovate in their productive model. In addition, the lack
of adequate resources impedes the economic diversification of cooperatives, leaving them more
exposed to financial risks when faced with external economic shocks.
Revista Multidisciplinaria Perspectivas Investigativas
Multidisciplinary Journal Investigative Perspectives
Vol. 4(4), 1-13, 2024
Bases epistemológicas del bienestar y la vulnerabilidad financiera de la economía popular y solidaria
Epistemological bases of welfare and the financial vulnerability of the popular and solidarity economy
Luis Daniel, Nauta-Padilla
Marco Antonio, Veloz-Jaramillo
Anthony Javier Puente-Gallo
Robert Patricio Moreno-Minsalve
8
Alternatives to mitigate financial vulnerability
The constitutional framework and public policies are key elements to mitigate financial
vulnerability within the popular and solidarity economy. In this order, Castro-Medina (2018)
highlights that the Ecuadorian legal framework offers certain protections, but its effective
implementation is limited. Structural challenges, such as the lack of integration with traditional
financial systems and poor support infrastructure, hinder the implementation of policies that
could strengthen the financial resilience of solidarity organisations. In this sense, the promotion
of alternative economies, such as those described by Zabala-Flórez et al. (2024), becomes a
horizon of possibility to rethink the forms of financing, seeking models that integrate principles of
sustainability and equity in the mechanisms of access to capital.
Decentralisation and community proximity
In this area, Monje-Reyes (2011) highlights that decentralisation can play an important role in
mitigating financial vulnerability in solidarity organisations. By bringing economic management
closer to communities and allowing greater local participation in financial decisions, solidarity
institutions can improve their capacity to respond to crises and ensure a more efficient
management of resources. Community proximity allows for greater transparency in the
management of funds and builds trust between cooperative members and organisations, which
is crucial for financial strengthening.
Epistemological bases of welfare and the financial vulnerability of the popular and
solidarity economy
The unified conceptualisation of the epistemological bases of well-being and financial
vulnerability in the popular and solidarity economy leads to a holistic approach where the
creation of well-being cannot be separated from the adequate management of financial risks.
The solidarity economy, by prioritising equity, solidarity and sustainability, faces financial
vulnerabilities that must be addressed through new financing strategies, effective public policies
and greater local autonomy. Only by balancing these aspects will it be possible to sustain an
economic model that promotes inclusive and sustainable well-being.
The popular and solidarity economy therefore emerges as a response to the hegemonic
capitalist economic system, structuring its principles around solidarity, equity and participation.
This economic model seeks to integrate an ethical, social and environmental approach that
prioritises collective well-being over individual profit, while facing challenges arising from its
financial vulnerability. The unified conceptualisation of the epistemological foundations of well-
being and financial vulnerability in this context requires addressing both the ethical and
philosophical dimension of well-being and the structural obstacles that limit the financial stability
of solidarity organisations, reconceptualised as follows:
Epistemological foundations of welfare in the popular and solidarity economy
Well-being in the popular and solidarity economy is understood from a holistic perspective that
goes beyond traditional conceptions centred on material well-being or economic growth. This
economy is based on an epistemic paradigm that articulates three key principles: solidarity,
Good Living and sustainability.
a) Solidarity: As a moral and political value, solidarity in this context redefines economic
relations, not from utilitarian exchange, but from cooperation, mutual support and
reciprocity (Khushf, 1999). Instead of understanding well-being as the individual
accumulation of wealth, the solidarity economy conceives it as the result of a series of
collective and cooperative interactions, where the community plays a central role in the
creation and distribution of goods.
b) Buen Vivir (Sumak Kawsay): In Latin America, well-being is structured on the worldview
of Buen Vivir, an approach that privileges the harmonious relationship between human
beings, the community and nature. The solidarity economy not only promotes the
creation of economic value, but also fosters social cohesion and respect for natural
Revista Multidisciplinaria Perspectivas Investigativas
Multidisciplinary Journal Investigative Perspectives
Vol. 4(4), 1-13, 2024
Bases epistemológicas del bienestar y la vulnerabilidad financiera de la economía popular y solidaria
Epistemological bases of welfare and the financial vulnerability of the popular and solidarity economy
Luis Daniel, Nauta-Padilla
Marco Antonio, Veloz-Jaramillo
Anthony Javier Puente-Gallo
Robert Patricio Moreno-Minsalve
9
resources (León-Serrano, 2019). Well-being, from this perspective, is a collective goal
that implies respect for human rights and the rights of nature.
c) Sustainability: Galán-Serrano et al. (2018) stress the importance of integrating
sustainability principles into product design and economic practices. The popular and
solidarity economy is, by definition, an economy of limits, which does not seek
excessive growth, but rather a balance between current needs and the preservation of
resources for future generations. This vision supports intergenerational well-being,
aligned with social and environmental justice.
Financial vulnerability: challenges and systemic risks
The financial vulnerability of organisations operating within the framework of the popular and
solidarity economy represents a fundamental challenge for their sustainability. This vulnerability
manifests itself at various levels: from lack of access to capital to weaknesses in supervision
and risk management mechanisms, reconceptualised as follows:
a) Limited access to finance: One of the greatest sources of vulnerability in the solidarity
economy is its restricted access to financial capital. Unlike traditional enterprises,
cooperatives and solidarity associations do not have the same channels to access
funds and liquidity in times of need (Gómez-Ceballos et al., 2021). This leaves them
exposed to economic crises which, without adequate financial support, can lead to
mergers or liquidation (Cardoso-Ruiz, 2020).
b) Supervision and financial management: Another axis of financial vulnerability is the
inadequacy of control and supervision systems in solidarity economy institutions. As
highlighted by Saltos-Cruz et al. (2016), the lack of robust mechanisms to manage
financial risk increases the exposure of these organisations to liquidity and sustainability
problems. This deficit in financial management is exacerbated by the community-based
nature of the solidarity economy, where decisions are made collectively, which can slow
down responses to financial crises.
c) Crisis and resilience: Despite its vulnerability, the solidarity economy has shown
resilience in times of economic crisis, especially in contexts where community solidarity
plays a crucial role (Villalba-Eguiluz et al., 2020). However, the capacity of these
organisations to recover depends largely on the availability of emergency financial
resources and institutional support, which is often limited.
Theoretical Unification: Interrelationship between welfare and financial vulnerability
The interrelationship between the epistemological foundations of well-being and financial
vulnerability in the popular and solidarity economy generates an inherent tension. While this
economic model prioritises the creation of well-being through solidarity, equity and
sustainability, it faces financial constraints that may compromise its long-term viability,
reconceptualising itself as follows:
a) Well-being and financial resilience: Well-being, in this context, cannot be understood in
isolation from the financial framework in which solidarity organisations operate. While
the popular and solidarity economy promotes equity and participation, its ability to
sustain these principles depends on its financial resilience. As proposed by Zabala-
Flórez et al. (2024), alternative economies must seek new forms of financing that do not
compromise solidarity and sustainable values, while at the same time providing a
financial cushion in the face of crises.
b) Structural challenges: The financial challenges of solidarity organisations reveal a
dichotomy: on the one hand, the community-based nature of these institutions is their
greatest strength, but also their greatest weakness when faced with the demands of the
global financial market. Decentralisation, as Monje-Reyes (2011) argues, may be a
viable response to mitigate this vulnerability, by allowing greater autonomy and flexibility
in local financial management.
Revista Multidisciplinaria Perspectivas Investigativas
Multidisciplinary Journal Investigative Perspectives
Vol. 4(4), 1-13, 2024
Bases epistemológicas del bienestar y la vulnerabilidad financiera de la economía popular y solidaria
Epistemological bases of welfare and the financial vulnerability of the popular and solidarity economy
Luis Daniel, Nauta-Padilla
Marco Antonio, Veloz-Jaramillo
Anthony Javier Puente-Gallo
Robert Patricio Moreno-Minsalve
10
c) Reforms for a sustainable balance: The unification of the epistemological bases of
welfare and financial vulnerability in the solidarity economy suggests the need for a
profound reform of public policies and regulatory frameworks. Castro-Medina (2018)
stresses that the Ecuadorian constitutional framework offers some protections for
solidarity organisations, but its implementation needs to be strengthened to mitigate
financial risk and ensure that the welfare promoted by these institutions is sustainable
over time.
The interrelationship between well-being and financial vulnerability in the popular and solidarity
economy poses a crucial tension: while this model prioritises equity, cooperation and collective
well-being, its long-term viability is compromised by structural financial constraints. The
wellbeing promoted by the solidarity economy, based on principles of community participation
and sustainability, depends critically on its ability to withstand financial shocks and access
capital resources. However, the lack of access to traditional financial mechanisms, coupled with
often insufficient risk management, exposes these organisations to vulnerabilities that can
weaken their ability to meet their social objectives. This link reveals that sustainable well-being
in these economies depends not only on solidarity, but also on the strength of their financial
infrastructure, which calls for strategic reforms to strengthen their resilience to global market
fluctuations.
CONCLUSION
The interrelationship between the epistemological bases of well-being and financial vulnerability
in the popular and solidarity economy highlights key aspects that must be considered to ensure
the sustainability of this model. In terms of well-being, solidarity, equity and the focus on Buen
Vivir are essential pillars that promote social cohesion, active participation and environmental
sustainability. However, in terms of financial vulnerability, challenges such as limited access to
capital, lack of adequate oversight mechanisms and reliance on community self-management
stand out, weakening the capacity of organisations to respond to economic crises. To ensure
that the principles of well-being can be sustained in the long term, it is crucial to address these
vulnerabilities through reforms that strengthen financial resilience and risk management,
allowing the solidarity economy to maintain its inclusive approach without compromising its
financial viability.
FUNDING
Non-monetary
CONFLICT OF INTEREST
There is no conflict of interest with persons or institutions involved in research.
ACKNOWLEDGEMENTS
To those who promote and experience the HPS.
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Multidisciplinary Journal Investigative Perspectives
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Luis Daniel, Nauta-Padilla
Marco Antonio, Veloz-Jaramillo
Anthony Javier Puente-Gallo
Robert Patricio Moreno-Minsalve
13
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