Project to Strengthen Rural Actors in the Popular and Solidary Economy
Ecuadorean Government's Popular and Solidary Economy (PSE), encourages balanced work relations based on cooperation, solidarity and reciprocity resulting in increased opportunities for employment and improved incomes for poor and vulnerable sectors of the population. Since its inception in 2011, PSE has a demonstrated to have a great potential to reduce poverty and foster economic growth. The sales from enterprises benefitting from PSE represent approximately 25.7 per cent of the GDP, contributing 10 per cent of the total net income and generating close to 60 per cent of total jobs in the country.
The Government of Ecuador, through the Instituto de Economía Popular y Solidaria (IEPS), is promoting the PSE throughout the country as a viable and efficient instrument to alleviate poverty, enhance social mobility and ensure redistribution.
Within this context the IFAD-funded Strengthening the Rural Actors of the Popular and Solidarity Economy Project (FAREPS) seeks to improve the conditions for the development of a solidarity economy in the provinces of Guayas and Los Rios in the coastal region; Azuay in the central highlands; Morona Santiago and Zamora Chinchipe in the Amazon. The project is expected to reach at least 20,000 poor and vulnerable rural families engaged in farming and non-farming activities.
To achieve this overarching target, the project will work hand-in-hand with PSE organizations, associations, cooperatives, communes and communities, to strengthen their membership and their institutional and managerial abilities. It aims to build the capacity of these organizations to develop a culturally and environmentally sustainable market-oriented production.
FAREPS will help transform smallholder farmer's vision into a viable modern business model based on trust and cooperation operating in a competitive environment.
07 September 2015
2015 - 2022
Credit and Financial Services
Total Project Cost
US$ 35.97 million
US$ 19.9 million
National Government US$ 12 million
Beneficiaries US$ 4.07 million