Developmental Dreams: Chinese State-backed Capital and State Formation in Ecuador

Abstract

This dissertation explores the process of the Ecuadorian state involvement in development in three distinctive periods: from the 1990s to 2006 (neoliberal period), from 2006 to 2017 (hybrid state), and the post-2017 (neo-liberal period) in three different sectors: oil, mining and construction.

In this dissertation, I show the process of organization of the state in a ‘pre-industrial’ state, more specifically the Ecuadorian state. It shows the organization of the state and the society in three distinctive periods: from the 1990s to 2006 (neoliberal period), from 2006 to 2017 (hybrid state), and the post-2017 (neo-liberal period) in three different sectors: oil, mining and construction. By analyzing the variation of state involvement (modes of governance) in these three sectors, I seek to determine what type of state is being formed in Ecuador—whether it is regulatory or developmental, or in between. More specifically, it seeks to determine what sources of power are relevant to determine the direction of the development strategy in Ecuador.

It shows that institution-building is still a function of top leaders that implement top-down policies. The analysis of institution-building considered exogenous and endogenous factors. It brings to the debate the process of institution-building and the importance of domestic actors in the absence and presence of Chinese state-backed capital.

It seeks to contribute to expanding the debate of the presence of Chinese state-backed capital and its effects on the development strategy, more specifically, the pursuit of a ‘developmental’ state. It moves beyond the conception of the ‘alliance’ between state and political elites and Chinese state-backed capital and brings other ‘sub-national’ actors that also interact with the Ecuadorian state, and Chinese state-backed capital and how it affects the balance of power of the state.

The alliance between political elites and Chinese state-backed capital does not necessarily strengthen state power. While I have argued that Chinese state-backed capital is important to strengthening the motivations and interests of the Correa government to pursue a ‘developmental’ state, other domestic actors are against the model of development pursued by the Correa government. Consequently, the presence of Chinese state-backed capital that supported the Correa government affected the balance of power of the state during the Correa administration.

It highlights that Chinese state-backed capital is important for the pursuit of a ‘developmental’ state but not necessarily a cause that will determine the pursuit of a ‘developmental’ state in host sates. However, without domestic institutions aiming at forming a ‘developmental’ state, the presence of Chinese state-backed capital does not determine the achievement of a ‘developmental’ state nor it influences states to pursue a ‘developmental’ state.

The analysis includes three specific areas: ideas and motivations and interests from different actors—business actors, bureaucrats and actors of the civil society—that became part of the political process that forms the state in Ecuador; how this political process shaped legal changes and the formation of the state apparatus; and to which extent these domestic interactions served the Ecuadorian state to leverage Chinese state-backed capital. The general argument in this dissertation is that Ecuador’s state involvement in development, depends on complementary forms of state power—the coalescence of political movements and consent of the Ecuadorian society, the formation of a state apparatus and state agencies that aim at a particular state form, and how these forces engage with Chinese state-backed capital.

Date of Award	17 Aug 2023
Original language	English
Awarding Institution	City University of Hong Kong
Supervisor	Yin Nor TJIA (Supervisor)