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2.2 A set of indisp<strong>en</strong>sable <strong>en</strong>dog<strong>en</strong>ous factors for local developm<strong>en</strong>t<br />

The interrelationship betwe<strong>en</strong> global opport<strong>un</strong>ities and restrictions –exog<strong>en</strong>ous dynamics- and local<br />

capabilities and advantages –<strong>en</strong>dog<strong>en</strong>ous dynamics- is a decisive aspect for <strong>un</strong>derstanding local<br />

developm<strong>en</strong>t, or its abs<strong>en</strong>ce. In this s<strong>en</strong>se, it is important to analyze dim<strong>en</strong>sions such as regional<br />

production chains, the quality of institutions in the formulation and managem<strong>en</strong>t of public policies, the<br />

social fabric, id<strong>en</strong>tity and culture (Boisier, 1998a). These important factors in the developm<strong>en</strong>t of local<br />

societies have <strong>en</strong>abled us to id<strong>en</strong>tify the specific capabilities of each of the RUCs studied to manage<br />

responses to the chall<strong>en</strong>ges of globalization, thus reducing the vulnerability to which these c<strong>en</strong>tres of<br />

regional attraction are exposed in relation to external patterns.<br />

Cayambe, Naranjal and Pastaza repres<strong>en</strong>t differ<strong>en</strong>t mom<strong>en</strong>ts of this link betwe<strong>en</strong> the internal and<br />

external <strong>en</strong>vironm<strong>en</strong>ts.<br />

2.2.1 Regional production chains<br />

In the first place, it is important to id<strong>en</strong>tify the capability, at local level, to g<strong>en</strong>erate production chains<br />

and reinvestm<strong>en</strong>t processes that make it possible to reduce the fragility of the economic expansion due<br />

to the international market. In this s<strong>en</strong>se, the three cases studied have interesting particularities.<br />

Focusing on Cayambe, this regional urban c<strong>en</strong>tre, as we said, is characterized by a very dynamic<br />

economic activity linked mainly to the flower plantations. Thus, agriculture is str<strong>en</strong>gth<strong>en</strong>ed as the<br />

main source of work, with more than half of the curr<strong>en</strong>t economically active population (EAP)<br />

working in a modern, highly technologized form of primary production, with strong exog<strong>en</strong>ous<br />

investm<strong>en</strong>ts related to the export of flowers. This growth has radically changed the economic and<br />

social structure of the region. The weight of the new agricultural activities is expressed in the urban<br />

social structure, where one third of the resid<strong>en</strong>t working population is employed in agriculture.<br />

Similarly, it is in the city of Cayambe that the transformation linked to trade, which appears to be the<br />

most dynamic sector compared with the stagnation and decline of industry and services, is most<br />

noticeable. At the same time, we observe the well-known ph<strong>en</strong>om<strong>en</strong>on of growth of “informal”<br />

activities, whose dynamism parallels the rise of social precarization.<br />

The case of Cayambe confirms once again that the impact of economic growth, without suitable<br />

regulation mechanisms, does not translate into a b<strong>en</strong>efit for the whole of society. The flower growers<br />

in Cayambe do not g<strong>en</strong>erate direct structured chain links with the whole of the local economy. This<br />

could be partly explained by the fact that capital comes from Quito or Colombia and that there have<br />

be<strong>en</strong> no reinvestm<strong>en</strong>ts at local level after the expansion and ev<strong>en</strong> less since the crisis of 1998.<br />

However, the will exists to promote processes of local developm<strong>en</strong>t, through initiatives coming both<br />

from m<strong>un</strong>icipal institutions and civil society. Of the cantons studied, it is in Cayambe where the<br />

capacities of local actors to g<strong>en</strong>erate proposals for the whole of society have be<strong>en</strong> most developed,<br />

ev<strong>en</strong> if they have be<strong>en</strong> developed <strong>un</strong>equally, as they basically come from the indig<strong>en</strong>ous movem<strong>en</strong>t.<br />

Naranjal also exhibits an important economic dynamic, linked in this case to banana production, which<br />

is predominant in the area –and has articulated the local economy and society for decades- and is<br />

directly linked to export and, therefore, to the world market. During the last decade, agriculture<br />

continued to be the main source of attraction of manpower (aro<strong>un</strong>d 60% of the EAP). However, <strong>un</strong>like<br />

Cayambe, a significant part of the capital has a local anchorage, which means that its economic<br />

pres<strong>en</strong>ce translates into a social hegemony that is superimposed on the local political structures. But<br />

the economic surpluses are not reinvested locally.<br />

At urban level, the contraction of the State machine has led to a decrease in the number of workers in<br />

comm<strong>un</strong>ity service activities. This drop has be<strong>en</strong> offset by commercial activities. However, the most<br />

significant features are, firstly, the fact that one third of the workers who live in the city work in<br />

agricultural activities, secondly, the dramatic increase of “<strong>un</strong>declared” activities (which have jumped<br />

from 2 to 10%), a demonstration of the tr<strong>en</strong>d towards a g<strong>en</strong>eral precarization of employm<strong>en</strong>t and,<br />

lastly, a reduction of self-employm<strong>en</strong>t and a parallel increase of wage employm<strong>en</strong>t in the private<br />

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